Statement on CPP rate hike

November 2024 — Our CPP is a coalition of citizens and organizations working to help Cleveland Public Power deliver affordable, reliable, clean power. We believe our municipal utility is a valuable civic asset but requires support to reach its potential. 

Recently, Cleveland City Council approved a two-year rate hike for CPP. The hike will increase the fixed base rate CPP charges for each kilowatt-hour (kWh) of power a customer uses. This charge pays for CPP’s operations, capital improvements, and debt expenses. (A separate power supply recovery charge covers the cost of the electricity customers consume.) As a result of the hike, typical CPP residential customers will see their summer bills increase about 11% to $83.07 per month by 2026, assuming power supply costs remain constant. 

CPP makes the case that the rate hike is justified because it has not increased the base rate since 1983, and since then its costs for wages and benefits, electrical equipment, and debt service have all increased. CPP also needs to invest more to maintain and improve its system. Therefore, a significant portion of the added revenue will go toward almost doubling the amount CPP invests in capital improvements, such as substation upgrades and grid modernization projects that improve system reliability and position CPP for future expansion. 

We think CPP is worth investing in. In recent years, new CPP leadership has made progress in stabilizing the system. And, for many reasons, a not-for-profit, locally-controlled, municipal utility is preferable to a corrupt for-profit utility like First Energy. 

That said, we are concerned that the rate hike will impose an additional burden on Cleveland residents who are already struggling to pay their bills. To reduce the burden, we want to see CPP make progress on the following: 

  • A permanent, accessible affordability program, such as a Lifeline program, for low-income and/or disabled residents. 

  • Increased transparency around shutoffs for underpayment. 

  • New programs to help residents weatherize homes and install energy-efficient appliances to reduce energy consumption. 

  • A clear strategy for working with community partners to invest in clean, renewable solar energy to help residents reduce energy bills.

  • More ways for the community to have input into CPP planning and decision-making. 

With continued improvements, CPP can help customers minimize energy costs while making Cleveland more economically and environmentally resilient. We need a modern and responsive CPP to lead us into the clean energy future.