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City utility discusses industrial ‘firm’ gas rate, 2,000 MCF qualification and wording changes
Summary
Utility staff reviewed a draft ordinance to create an industrial 'firm' gas customer classification, discussed a 2,000 MCF-per-month qualification threshold, and flagged wording changes needed for staff-authority language before returning the item to a future meeting.
City utility staff reviewed proposed language to create an industrial or "firm" gas customer class and sought council input on qualification criteria and supervisory authority language.
Staff noted a potential qualification threshold included in the draft: a customer would qualify as a firm customer if they use 2,000 MCF per month on average. A staff member said that qualifying industrial customers are expected to use significantly more gas than commercial customers and that having a firm classification would help the utility recover capital investments if it had to extend or upgrade lines to serve large users.
Council members and staff discussed wording that names who has authority to approve rate classification changes. One council member said the draft currently gives the city (or an unspecified official) the ability to make the change and suggested replacing the phrase "superintendent of utility" with clearer language identifying the official role that would hold that discretion. Staff agreed to rework the wording so it applies to the broader utility leadership rather than just the gas division.
Staff and council also noted the practical timetable: the city expects one industrial customer, identified in the meeting as "Two Rivers," to begin production in August; establishing a firm rate ahead of that timeline was described as important for allowing the utility to recover costs and set appropriate rates for that customer.
No formal motion or vote was recorded on the draft at the work session; staff planned to revise the draft language and return the ordinance for council consideration at a future meeting.
