A 10 percent increase on "hydro-electric" rates for Spencerport Municipal Electric customers, to cover current operating costs and bolster capital reserves, will not have much of an effect on bills when it kicks in later this year, Village Administrator Alan Scheg told residents at a public information meeting January 31.

"As a resident of Ogden, I am therefore paying roughly four times the amount for electric you are," Scheg joked with the 15 village of Spencerport residents at the fire hall last Wednesday.

Scheg and Village Trustee Steven Russell presented the group with a "typical" residential electric bill for $83. On that bill $55 was for hydro-power (the portion that would be affected by the rate hike) and $28 for purchased power adjustment (the rate for power purchased when the village exceeds its "hydro-allotment)." That bill would increase $5.50 to $88.50 with the new rate.

"The electric franchise has been in existence for some years," Mayor Theodore Walker said. "Providing clean, reliable, inexpensive electric to the whole franchise area," with no rate increases in the past twelve years, he said.

Walker said the village hired consultants Bollam, Sheedy, Torani & Company to examine the franchise's financial health. "Yes, in order to proceed the way we have been in the past … it is indicated that we need to change the way we do business, we need more money," Walker said.

The firm will submit the final rate proposal to the Public Service Commission, which looks out for the consumer, in February. Scheg said it could take months for the rate to be accepted, and possibly until early fall to take effect. He said the village would keep in touch with customers through letters and articles in the Suburban News.

Last week's information meeting included an illuminating presentation by Electric Superintendent Jack Linder explaining the genesis of the village's hydro-power at Niagara Falls, and the village's efforts to maintain reliable, efficient electric service.

Each municipal electric franchise in the state has a certain allotment of power they can take from what is generated at Niagara Falls. Whenever usage in the village goes above that amount, the franchise must purchase power on the open market, at a much higher cost, resulting in the "purchase power adjustment" on bills.

Linder told residents that the franchise monitors usage with computers and automatically attempts to stay within that limit by lowering voltage when it is getting near. He said the only effect residents may see from that is a shrinking picture on a television.

According to Linder, the village can operate within its hydro-allotment most of the time in the summer. During a cold snap it may exceed it often, resulting in very high electric bills -- not only are residents using more electric but they are paying more per kilowatt hour for it.

"The more the village grows, the quicker we get to the allotment," Linder said. "I think we should service what we have and serve them well. I don't think we should be out looking for more (customers)," he said.

The village encourages new development to use gas heat and hot water heaters, Walker said, and at the village's urging, the new senior-citizen development project will use all gas.

Linder said the village's three cents per kwh hydro-electric rate is the lowest in the state, along with two other municipalities. Locally, it beats Bergen, Churchville and Fairport, he said.

In addition to attempts to remain within the hydro-allotment, Linder said the franchise is working to save the consumer money and reduce interruptions through its yearly tree-trimming program, hiring RG&E to monitor underground lines with heat-seeking infrared technology, and working to protect the system from squirrels.

"Spencerport has a very large squirrel population per capita," Linder joked, blaming his gray hairs on the rodents. Squirrels can cause problems when they chew through wires.

Other ways the village is working to reduce cost and increase reliability include: installing conduit pipe underground in all new development, using better-grade wire and cable, installing more switching centers and lightning arrestors, and sectionalizing points to isolate problems on the line and limit outages.

He and Russell addressed the deregulation of the industry, saying Spencerport will closely monitor and react to changing conditions. Russell admitted he is, "still struggling to understand" how it will save consumers in the long run -- initial costs were passed on to franchises in the first year.

No residents spoke out against the rate hike. Questions centered on how Spencerport rates compare with other municipalities and whether the rate hike would be the same for all customers -- it is the same for every residential, commercial and industrial customer.