E.L.K. users raise concerns about proposed rate increase during meeting - Action News
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E.L.K. users raise concerns about proposed rate increase during meeting

E.L.K. Energy users spoke out about concerns over a proposed $3.50 fee increase during a public meeting Thursday night. The company argues it needs more money to continue serving customers.

E.L.K. Energy has applied to increase their rates by $3.50

About 30 concerned residents attended a public meeting hosted by the Ontario Energy Board Thursday night to discuss a proposed rate increase by E.L.K. Energy. (Rima Hamadi/CBC)

EssexCounty residents expressed concerns about a proposed monthly increase to their hydro billsduring a public meeting Thursday night.

The meeting, hosted by the Ontario Energy Board, was held to discuss an application by E.L.K. Energy to hike their distribution rate by $3.50 per month.

"That $3.50 increase is required for succession planning into the future," said Mark Danelon, a representative of the utility company. "As well as the new programs that the government has rolled out. To try and implement those in a reasonable and efficient fashion."

Counting nickles and dimes

Wayne Borcherwas one of about 30 customers who attended the meeting. The Belle River man explainedhe'shad his cable shut off, his phone plan halted and has even had to cut back on the groceries he buys for his family all because of increasing costs.

Wayne Borcher was one of about 30 customers who attended the meeting. The Belle River man explained he's had his cable shut off, his phone plan halted and has even had to cut back on the groceries he buys for his family all because of increasing costs. (Rima Hamadi/CBC)

While $3.50 might not seem like much to some, when you're counting your changeto get by each month it's a huge cost, Borcher said.

"The cost of utilities, water, gas pumps go up, even fruit goes up," he said. "Everything is literally going up except for what I work for. So it's coming down to the nickle and dime. "

E.L.K. Energy serves about 12,000 homes in Essex, Lakeshore and Kingsville. Danelon said the company heard what customers were saying during the meeting, but asked for patience as the electricity sector works through a period of transition.

Understanding how rates are calculated

Senior legal counsel for the OEBKristiSebaji, said the focus needs to be on finding a balance between what's needed to keep the hydro system in good shape and maintaining reasonable rates for customers.

E.L.K. Energy has applied to raise their distribution rate by $3.50 per month, a cost that would show up on customer bills for the next five years starting in May, according to the OEB. (Google Maps)

Public meetings, such as the one held Thursday, explain to customers why a company might need to raise costs, she added.

"No one likes increased rates but I think when they better understand what's going into it, I think it helps them understand where there bills are coming from."

If approved, the rate increase would show up on customer bills for the next five years, starting in May.