Logan council approves small utility rate increase, raises NSF fee to $45
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Summary
Logan City Council approved Resolution 25-31 to raise Logan City Light & Power customer rates by about 3% for the average residential account and to increase the non‑sufficient funds (NSF) charge to $45, citing rising power and equipment costs and staff processing time.
Logan City Council on Monday approved Resolution 25‑31, raising city light and power rates for residential customers and increasing the non‑sufficient funds fee to $45. The council voted to approve the resolution after a staff presentation and public hearing with no public commenters.
City utility staff said the rate change comes from a routine cost‑of‑service review and is intended to cover rising wholesale power and equipment costs. "We had it at 20. 20. We're proposing to go to 45. Our cost from the bank is 35," Mark Montgomery of Logan City Light and Power said during the presentation. Montgomery also showed a sample bill for 700 kilowatt‑hours, which he called "about the kind of the average residential usage," and said the existing bill of about $89.50 would become about $91.98 under the proposed rates — an increase of roughly $2.50, or under 3 percent, for that usage.
The utility representative told the council the department conducts a cost‑of‑service analysis every few years and has been implementing incremental increases rather than a single large increase. "I think this is the third year we've done an incremental increase. About 3%." Montgomery said. He testified that changes in power, equipment and transport costs over recent years drove the need to raise revenue.
Councilmembers questioned the incidence and fairness of the higher NSF fee. Montgomery said the bank charges the utility $35 and that staff time to process returned payments is significant because multiple departments must intervene. He estimated the city receives roughly 10 NSF incidents a month among about 22,000 accounts, and said isolated large events — for example a returned payment on an apartment complex account — can require many hours of staff time.
Council discussion included an appeal for moderation. One councilmember said they did not "love charging more than we need to to recoup our costs," and another expressed concern about burdening customers who are struggling financially. Montgomery said the utility is willing to work with customers who contact staff to arrange payment plans.
On a roll call the council approved the resolution. Jeannie Simmons said she would vote "yes"; the record shows the motion carried. Councilmembers discussed that the city could revisit the fee if it became unduly burdensome.
The action is formal: Resolution 25‑31 passed, raising utility rates incrementally and adopting a $45 NSF charge. Councilmembers directed staff to monitor impacts and return if adjustments are needed.
The ordinance takes effect as a council action; staff said similar modest increases are likely to continue in coming years because consultants previously advised spreading needed increases over multiple years rather than a single large hike.
