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Consultant urges 25% residential share in draft Hastings Utilities line‑extension policy
Summary
JK Consultant recommended a formal line‑extension policy that would require residential customers to pay 25% of new extension costs and set separate rules for commercial, irrigation and large‑power customers. Staff delivered a draft ordinance; Hastings Economic Development Council urged flexibility for competitive industrial recruitment.
John Kraske, a consultant retained by Hastings Utilities, told the Utility Board on July 24 that the utility should adopt a formal line‑extension policy requiring residential customers to make a contribution toward construction costs.
Kraske said he recommends that residential customers pay 25% of the total extension investment. "So let's say that it costs you $10,000 to serve this new customer — they're gonna pay $2,500," Kraske said. He described four customer classes — residential, general service (nonresidential), irrigation and large power — and recommended different methods for calculating required customer contributions for each class.
Kraske said the policy would protect existing customers from subsidizing expensive, low‑payback…
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