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Commission considers adding periodic broadband rate review to oversight duties

3274699 ยท May 12, 2025
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Summary

Commissioners debated whether to add broadband-rate review and broader oversight of fees charged to and by the city to the commission's governance policies; no policy change was adopted but staff was asked to explore options.

Commissioners discussed whether the utility commission should explicitly review broadband pricing on a periodic basis and increase oversight of fees and charges between the utility and the city.

Natasha suggested the commission consider language to ensure pricing and fees the utility charges the city are "fair and reasonable," saying complaints about fees sometimes reach the common council. Several commissioners expressed concern about inserting vague or subjective language into policy and instead favored a specific, periodic review for broadband comparable to regular rate cases for electric and water.

Nick, the general manager, said broadband rates had been benchmarked against private industry about a decade ago and that staff had applied small inflationary increases since then. Commissioners noted there is no external regulator for the broadband utility equivalent to the Public Service Commission for electric and water, which they said creates an oversight gap.

No formal changes to policy were made. Commissioners asked staff to draft a proposal for a periodic broadband rate-case review at the commission level and to clarify which fees and intergovernmental charges would be covered if the policy were revised.