Utility director outlines $50 million operations, infrastructure needs and smart‑meter plan

Jeff Grager, Utility Director, presented the Orrville utilities’ annual report to City Council on April 21, outlining operations across electric, water and wastewater utilities and highlighting near‑term capital needs.

Grager said the combined utility budget "ranges right around $50,000,000" and that electric rates were again being held steady; water and wastewater rates have been frozen since 2022 while the utilities prepare rate reviews. He told council the utilities met EPA compliance requirements last year and that staff are planning a multi‑year infrastructure program, particularly for aging wastewater mains that were installed 80 to 100 years ago.

Major commercial customers include Smucker’s and Smith Dairy, which are the utility’s largest water and wastewater users, Grager said. He described generation and purchase arrangements across the city’s portfolio—hydro, Prairie State coal share, the Fremont natural gas facility and market purchases—and noted the power plant now operates a small fraction of the year under EPA operating restrictions. Grager said the utilities’ power costs were in the neighborhood of $25,000,000 last year and that transmission fees have been a significant cost driver.

Grager described recent capital acquisitions and projects: a hydro‑vacuum excavator and vacuum truck (a package he said cost about $550,000), three power transformers on order at roughly $2,000,000 each for a planned substation, and new bucket trucks acquired as opportunistic buys. He also said the utility received a safety and reliability award from the American Public Power Association after approximately 40,000 man‑hours with zero lost‑time accidents.

Looking ahead, Grager described a proposed smart‑meter program for electric and water that would provide near‑real‑time customer usage data and help detect leaks; he estimated the project would be "roughly about a $3,000,000 project." He said the city had hoped for federal grant support for meter rollout but did not expect substantial funding from Washington and that the project may proceed with local financing.

Grager also raised a strategic concern: the city’s partial ownership of a Prairie State coal facility may face changes in Illinois energy policy that could accelerate closure before the debt is retired; the city is monitoring that liability. He recommended ongoing rate reviews and capital planning to address wastewater infrastructure needs and future reliability concerns.

Council thanked Grager and discussed committee follow‑up; no formal council action was taken on the report during the meeting.