Saint Peter council approves electric-rate changes, accelerates AMI meter rollout

The Saint Peter City Council on Monday approved new electric rates that take effect March 1, 2025, and Jan. 1, 2026, and adopted the city’s 2025–26 electric fund budget, including accelerated funding to install advanced metering infrastructure across the city.

City staff said the change reduces proposed near-term rate increases and shifts capital funding to pay for a complete AMI meter rollout in 2025. Todd, a staff member who presented the plan, said the council’s direction at a prior workshop guided revisions to rates and the capital-improvement plan. "We're really trying to balance these 3 or 4 things out as a part of the overall process," Todd said.

The rate changes as presented lower projected electric revenues by $361,511 in 2025 and by $717,005.35 in 2026, according to Sally, a staff member in finance. Sally said staff increased the 10-year capital bonding for the electric CIP from $700,000 to $1,502,000 and accelerated the AMI meter purchase, increasing the AMI line item to $338,200 so the city can install AMI meters in all residential homes by the end of 2025. "We are gonna pull that ahead using bonding and get it all done by the end of 2025," Sally said.

Staff described AMI meters as a tool to detect usage spikes and to allow remote actions such as disconnects and service notifications. Sally said the meters will also support customer-facing portals planned for 2026, enabling residents to view usage during peak weather. Todd added that weather affects revenues and staff will monitor and return to council for review if needed.

Council member Brad thanked staff for revising the proposal after council feedback, saying staff reduced originally proposed increases and reallocated capital to better meet current needs. "You came to us with, initially, consecutive 6% increases, and we challenged you to drop that significantly," Brad said. "You did, but you didn't just cut expenses. You reallocated resources and changed your capital plan to better meet what our needs are at this time."

Council members approved the resolution adopting the electric rates (effective March 1, 2025, and Jan. 1, 2026) and separately approved the resolution adopting the 2025–26 electric fund budget. Staff said projected year-end reserve balances are above the city’s $2 million target under the adopted plan but warned that extreme weather can affect revenue.

The budget also includes funds to study additional local generation; staff said the council will be notified if any proposed generation meets the financial and reliability criteria discussed in workshops.

The council voted on the rate resolution and the budget by roll call; each resolution was approved by the council present at the meeting.