Traverse City Light and Power has approved a rate increase that means several classes of customers, including seniors, will be paying more for electrical service.
TCLP approved the plan at meeting Tuesday night. The action comes as a result of a cost of service study conducted by Utility Financial Solutions in which it was determined that some customers were paying above and others below the calculated cost to serve them. Seniors were one class that was determined to be paying too little for the services they were receiving. Under the rate increase, senior water heating rates will go up by 2.7%. Residential heating costs will go up by 1.8%. Commercial electric heat and air conditioning will also increase by 2.8%.
Tim Arends, TCLP Executive Director said "Light and Power is proposing to adjust rates gradually to recover the cost of service which will provide an acceptable level of increase to customers."
This is the first rate increase for TCLP customers since 2006.