Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Electric Utilities topic
No spam. Unsubscribe anytime.
Huron council approves $2.5 million revenue bonds to buy power transformer
Summary
City council approved Ordinance No. 2025-6 to issue up to $2.5 million in revenue bonds to pay for a new power transformer and related electric system improvements; staff said bond payments will be covered by enterprise revenues and an upcoming rate adjustment.
HURON — The Huron City Council on March 11 placed Ordinance No. 2025-6 on an emergency reading and approved the issuance and sale of revenue bonds in a maximum principal amount of $2,500,000 to pay costs of improving the municipal electric system by purchasing and installing a power transformer and related equipment.
Council adopted the ordinance on an emergency basis following a roll-call vote in which the members present voted to approve the emergency clause and the bond measure.
City utilities staff said the transformer was ordered in 2023 and is expected to arrive in May; the associated switchgear has also been ordered and one additional bid for installation remains outstanding. The bonds are structured as revenue bonds for the municipal electric enterprise, which staff said will not count against the city’s general obligation capacity.
Staff said a rate study for the HPP (Huron Power Plant/enterprise) is nearing completion and is expected to cover the bond payments; staff estimated annual debt service of roughly $200,000 and said the enterprise will recover payments through future rate adjustments rather than using the city’s general fund.
Councilors asked about customer outreach and timing; staff said customer notification and further utility-board review will follow the finalization of the rate study and would be brought to council before rate changes are implemented.
Discussion at the meeting also covered transmission redundancy: the city currently receives power through a single supply (the Shamrock line), and staff said American Municipal Power’s transmission arm is delivering a second supply line on a different path to create redundancy. Staff noted the transformer and a second supply source together should allow the system to carry customers reliably.
Ending: The ordinance authorizes the immediate issuance of revenue bonds; staff will return with final rate-study results and customer-notification plans prior to implementing rate adjustments to cover debt service.
