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Petersburg Assembly approves first readings of utility rate increases and a new marine passenger refuse fee
Summary
The assembly approved first readings of ordinances to raise electric, water and sewer rates and to add a flat $800 refuse fee for marine passenger ships; the electric proposal moves away from a declining-block rate toward a single per‑kWh energy charge and seeks roughly a 4% revenue increase.
The Petersburg Borough Assembly on May 19 approved in first readings a suite of utility ordinances that would raise electric, water and sewer rates and add a new flat refuse fee for marine passenger ships.
The actions, each approved unanimously on first reading, were: - Ordinance 2025‑07: updates the electric utility chapter and implements a rate design change that moves away from a declining‑block structure to a single energy charge per kilowatt‑hour for each customer class; the package is intended to generate about a 4% increase in utility revenue. - Ordinance 2025‑08: updates the water rate schedule. - Ordinance 2025‑09: updates sewer collection rates. - Ordinance 2025‑10: adds a new sanitation code section to allow a flat $800 fee for providing refuse service to marine passenger ships.
Why it matters: Utility rate changes affect monthly bills for residents, harbor users and commercial customers. Assembly members said they sought to balance cost recovery, system maintenance and fairness across customer classes while allowing customers clearer price signals to conserve energy.
Key details and staff explanation Utility staff explained the electric changes. "We're moving towards a much simpler, you know, one singular energy charge per kilowatt hour for each customer class," said Carl Hagerman, the utility director. He said the change reflects reduced surplus hydropower compared with earlier decades and aims to let customers see unit costs and manage consumption.
Hagerman and other staff said the package includes increases in customer base charges to stabilize revenue as rate design changes take effect; they cited harbor customer base charges rising more than residential base charges because of higher maintenance activity in harbor facilities. For example, the regular residential monthly customer charge would increase from $10 to $16 and the harbor user customer charge would increase from $10.50 to $20 (figures discussed in packet and at the meeting).
On the marine refuse item, sanitation staff said the borough had been collecting refuse from ships but had not fully recovered the extra staff and equipment time required to coordinate service. The proposed flat charge of $800 is designed to capture those added costs. Director Conner said the flat rate does not include an automatic inflation adjustment; the borough expects to revisit fixed rates periodically.
Assembly discussion Assembly members acknowledged that rising costs are difficult for residents on fixed incomes, but many supported the package as necessary to maintain service and system reliability. Member Schwartz emphasized concern for fixed‑income residents, and Member Marsh asked about the long‑term effect of electrification trends on system demand; staff noted that load growth has been occurring and cited large year‑to‑year increases in some periods.
Next steps Each ordinance passed its first reading and will return for additional readings and a staff‑recommended analysis before final adoption. Staff said they would monitor customer response after implementation and use rate‑modeling to adjust future proposals.
Votes at a glance - Ordinance 2025‑07 (electric utility rates): first reading passed 7–0. - Ordinance 2025‑08 (water rates): first reading passed 7–0. - Ordinance 2025‑09 (sewer rates): first reading passed 7–0. - Ordinance 2025‑10 (marine passenger ship refuse fee): first reading passed 7–0. The flat refuse fee was set at $800; staff does not yet plan an automatic inflation clause.
