BMU reports $70 million water plant near completion and plans multiyear electric rate increases

Representatives of the Brookings Municipal Utilities (BMU) reported to the council that the utility expects to transfer $2,705,000 to the city's general fund in 2026 and described major capital projects and forthcoming rate increases.

According to the BMU update, the utility's transfer to the city for fiscal year 2026 is $2,705,000, an increase of $50,000 over the 2025 transfer. BMU told the council the electric division plans a 3% overall rate increase in 2026 and 5% increases in 2028 through 2032, citing increases in wholesale power costs from suppliers including the Missouri River Energy Services and the Western Area Power Administration.

BMU's capital-improvement plans include about $63.7 million in electric system investments through the CIP period for items such as reserve capacity generators, substations, underground conversions, renewable energy projects, building upgrades, storage and vehicles. BMU staff also reported the city's new water plant — a roughly $70 million project — is expected to be substantially complete by October, with final construction work continuing into 2026.

Board and staff discussion also highlighted ongoing work to protect drinking-water supply and well fields, regulatory compliance, equitable rate-setting for new development, and upcoming changes to customer billing dates and software that will alter the appearance and timing of some bills during a transition month.

Council received the BMU reports; no council action was required this evening.