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Hastings utility board debates developer cost-sharing for new electric, water service
Summary
City staff and a consultant presented options for requiring developers and large customers to contribute to line-extension and service-connection costs; board members favored a policy that shares costs and recommended specific residential and commercial targets for further drafting.
City staff and a consultant presented a proposal to require developers and large customers to share more of the upfront cost when new electric, water or gas lines must be extended to serve development.
Advisory board members and staff framed the topic as a balance between protecting existing ratepayers and remaining competitive for new housing and business development.
Utility staff said Hastings currently pays most line-extension costs and that the typical per-lot investment by ratepayers is substantial. Kyle (staff member) told the board, “Currently, it costs, the rate payers of the utilities $7,500 on average per lot to, to to place that infrastructure to provide that power.” Staff and JK Energy Consulting recommended several methods — a percentage-based contribution, an allowable investment limit per lot and different treatments for residential, irrigation, general service (commercial) and large-power…
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