In a recent joint special meeting held on May 1, 2025, the Miami City Council and the Miami Special Utility Authority (MSUA) discussed critical financial projections regarding the city's electric service costs. The meeting highlighted the anticipated increases in operating costs and the implications for residents and the local economy.

The primary focus of the meeting was a detailed chart outlining the current and forecasted costs of electric service. Officials noted that operating costs are expected to rise gradually over the next four years, reflecting a general trend of 3 to 4% annual increases. This rise is attributed to various factors, including ongoing rate increases from the Grand River Dam Authority (GRDA) and the overall inflation of operational expenses.

A significant point raised was the projected total cost of service, which currently stands at $24 million and is expected to increase to approximately $27 million within three years. This increase will be driven by higher purchase power costs, capital outlays, and the need to service existing and new debt. Additionally, the electric fund is projected to transfer around $3 million to support the city's general fund, a common practice in municipal electric services.

In response to these financial pressures, the council is recommending a phased approach to implementing a 12% increase in non-GRDA costs, set to take effect in June or July 2025. This marks a shift from a previously proposed two-year implementation plan to a three-year timeline, allowing for a more gradual adjustment for residents.

The discussions during this meeting underscore the city's proactive approach to managing rising utility costs while balancing the financial needs of the community. As the council prepares to implement these changes, residents can expect further updates on how these adjustments will impact their utility bills and the overall financial health of the city's electric services.