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Coffeyville commissioners approve first reading of electric-rate ordinance after months of debate

5934796 · April 23, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

After months of study and public work sessions, the Coffeyville City Commission approved first reading of an ordinance that adjusts electric rates and raises the distribution loss floor; commissioners debated timing of implementation and the size of the loss-factor floor before the 3–1 vote.

The Coffeyville City Commission on April 22 approved the first reading of Ordinance G-25-01, a change to city electric rate schedules, after extended discussion about how quickly to implement higher rates and how to account for distribution losses and rising wholesale costs.

The ordinance, introduced by the electric utility and presented to the commission by Chris Weiner, executive director of Electric, would adjust base rates and change the minimum loss-factor used in the power-cost adjustment (PCA). "We haven't seen an increase in electric rates in almost a decade," Weiner told the commission, saying the utility's "costs have gone up significantly in that time period." The commission voted 3–1 to approve first reading with an amended start date of Jan. 1, 2026.

The debate centered on two related choices: when to start implementing the new rate schedule and whether to raise the PCA floor (loss factor) from the ordinance minimum. Weiner and staff presented two components of customer impact: the ordinance's direct rate change (about a 7% increase in the ordinance itself, according to staff) and a separate PCA adjustment tied to distribution losses and the city's wholesale supplier. UFS, the rate consultant working with the city, recommended increasing the minimum loss floor to 14% based on recent years; staff said last year's measured system loss was roughly 12% and 2023 measured at about 16%.

Commissioners discussed starting dates ranging from September 1, 2025, to Jan. 1, 2026. Vice Mayor Van Oster and others argued for an earlier start (September or October) to cushion the impact by beginning the change in months with lower typical usage and to respond to a known Grand River Dam Authority (GRDA) wholesale increase planned for October. Mayor Deborah Maples and others urged giving the public more lead time and chose the compromise to set Jan. 1, 2026, as the effective date in the approved first-reading motion.

Commission discussion and staff explanations emphasized two drivers of the change: (1) the PCA and the city’s wholesale cost from GRDA, which staff said includes a planned 4% wholesale increase this October (and an additional 4% the following October), and (2) distribution-system losses that have been higher in recent years because of factors such as trees contacting lines, aging equipment and extended rural distribution mileage. "The loss factor for last year was 12%," Weiner said; "UFS has recommended increasing our minimum to 14% because that's the average of the past two years." He added that the ordinance would raise the minimum floor in the PCA provisions and that the PCA operates on a rolling six-month basis.

Commissioners expressed concern for ratepayers while also acknowledging the city's fiduciary responsibility to keep the utility solvent. Commissioner Edwards opposed the first reading vote, saying she was not comfortable with the timing; Commissioners Hendricks, Van Oster and Maples voted in favor. Mayor Maples moved approval of the first reading with the Jan. 1, 2026 effective date; Commissioner Hendricks seconded.

What the vote does (and does not) do: this vote approved the ordinance's first reading and the amended effective date. It did not enact a final rate ordinance (a second reading and publication are required), nor did it finalize every implementation detail; staff said they will publish infographics, press materials and public notices to explain the ordinance and the PCA changes to customers.

Next steps and public notice: staff told the commission they will finalize outreach materials, mail information to customers and schedule the second reading and publication as required by ordinance. Staff also said they will continue evaluating loss-mitigation steps (for example, enhanced tree-trimming and targeted capital investments) to reduce future PCA impact.

Votes and motions: Mayor Deborah Maples moved approval of the first reading with an effective date of Jan. 1, 2026; Commissioner Hendricks seconded. The roll-call vote was Hendricks—Aye; Vice Mayor Van Oster—Aye; Mayor Maples—Aye; Commissioner Edwards—No. Commissioner Faulkner was absent.

The commission’s deliberations repeatedly emphasized trade-offs between short-term customer impact and longer-term utility financial stability; staff recommended the floor increase and adjustments to avoid repeated ‘‘catch-up'' increases later.