Monmouth council approves utility rate increases for electric, water and stormwater

The Monmouth City Council on June 3 approved rate increases for the city’s utilities: a 6% increase for electric service, a 5.5% increase for water service and a 3% increase to the stormwater utility fee.

Wade Carey, Monmouth Power & Light director, told the council a combination of rising wholesale power costs and historic underinvestment in the distribution system left the utility facing operating shortfalls and declining reserves. Carey said the utility began a multi-year cost-of-service study earlier this year and that the consultant will present the full analysis at a July 15 meeting. "If we continue on the path that we're doing now, shortly after FY '28, we will have no reserves if we don't do anything," Carey said as he summarized the revenue forecast.

Carey described a multi-year scenario that the rate study models and recommended a 6% increase for the coming fiscal year; the council approved that increase by roll call vote. Carey told the council some of the pressure on revenue comes from a Bonneville Power Administration rate case and higher transmission charges; he said more detailed cost-driver information will be supplied with the consultant’s July return.

Public Works Director Russ Cooper presented the water proposal. The council approved a 5.5% water rate increase, which raises the single-family base rate from $23.71 to $25.02 per month and increases the per-100-cubic-foot consumption charge by about $0.19. Cooper said the rate study the city used is a multi-year plan intended to preserve reserves while funding capital and operations; he estimated the water change will add roughly $0.75 per person per month for typical household usage.

The council also approved a 3% increase to the stormwater fee, raising the monthly single-family-equivalent unit charge from $14.42 to $14.85. Staff said the stormwater increase funds planned capital work and maintains reserve levels projected in the utility’s five-year plan.

Councilors asked about rate design changes the consultant is studying, including moving more cost recovery into monthly fixed charges. Carey said the consultant’s cost-of-service work indicated Monmouth’s fixed electric customer charge is low compared with peer utilities and that the consultant modeled a fixed charge nearer $34 per month, though any design change would return to the council for approval. The council approved all three resolutions (electric: Resolution 2012; water: Resolution 2013; stormwater: Resolution 2014) by recorded votes.