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Huron introduces public power regulations and proposed rate changes to fund transformer and meter costs
Summary
Council placed on first reading an ordinance to create a new public power chapter and to adjust rates for Huron Public Power, including a capital rider, removal of a distribution cap and a $15 monthly meter charge; staff said changes are intended to cover new debt and capital needs.
Huron — The City Council placed on its first reading Ordinance No. 2025-18 on July 22, which would add a new Chapter 925 to the codified ordinances to govern Huron Public Power (HPP) and establish updated regulations and rates.
Mr. Schrader introduced the legislation and City staff explained the changes are intended to cover debt service for a third transformer and to provide a modest capital funding mechanism. ‘‘This rate increase will cover the new debt we're bringing on for the third transformer, and it will let us keep a moderate fund balance,’’ City Manager Hamilton said. He emphasized the utility’s goal: ‘‘We are not here to make money. We're here just to make sure that we can keep providing affordable electric service to our customers.’’
Staff described three main elements: a rate increase tied to debt service, a small capital rider billed by kilowatt-hour to build the capital fund, and a new $15 meter charge to help cover meter maintenance and replacement costs. Hamilton said meters can cost between $2,000 and $5,000 to replace, and the new service charge will help recoup those costs.
The ordinance also removes a prior $650,000 cap on distribution costs that staff said limited flexibility when rates change. If passed on all three readings the changes would go into effect Sept. 1; staff said they have notified customers via email and invoice flyers and will accept public comment at subsequent readings.
Council asked about who is affected; Finance/utility staff said the initial customers for this public power operation are commercial accounts at the corporate park and one customer at the industrial park, with residential expansion considered later if economically feasible. ‘‘We only do commercial customers at this point. Ideally, at some point down the line, we would love to do a residence as well,’’ Hamilton said.
Council did not adopt the ordinance at first reading; the legislation was introduced and placed on the record so residents may comment at the remaining readings.
