Miami consultant urges 3-year electric rate plan to fund $28 million in system upgrades

David Jackson, vice president of William Financial Services, told the City of Miami council and utility board that the city needs a three-year electric rate plan to cover rising purchase-power costs, fund $28 million in capital work and make room for a partial customer share of an Advanced Metering Infrastructure (AMI) grant.

Jackson said the recommendation is driven by four factors: inflation, higher wholesale power charges from the Grand River Dam Authority (GRDA), planned debt for capital improvements and the city’s portion of an AMI grant. “There are 4 factors more than anything else that are driving the need for a new rate plan,” Jackson said during his presentation. He added that GRDA is implementing an 11% rate increase in the current year and 4% increases in 2026 and 2027.

The consultant summarized the proposed schedule and customer impact. Under the plan, non‑GRDA costs would increase 12% in mid‑2025, followed Jan. 2026 by a $4 rise in the residential base charge plus a 5% increase in volumetric (per‑kWh) charges, and another 5% volumetric increase in Jan. 2027. Jackson gave example impacts: the average Miami residential customer — about 860–865 kWh monthly and currently paying roughly $111 — would see a roughly $8.91 increase in June 2025, about another $9 in Jan. 2026 and about $6 in Jan. 2027. Jackson said these changes would…