Huron council adopts ordinance codifying public-power rates, adds capital charge and $15 meter fee

Huron City Council on Aug. 26 adopted Ordinance 2025-18, creating a new chapter in the city codified ordinances to govern Huron Public Power rates and regulations. The council voted to adopt the ordinance after staff explained the increases are intended to cover debt service on a third electrical transformer and to add redundancy to the local distribution system.

Mister Hamilton, representing city staff, told council the ordinance includes a capital rider of 0.0005 per kilowatt-hour, removes a historical $650,000 cap and adds a $15 monthly meter charge for maintenance. "This increase only covers the additional cost of the debt that we're bringing on for the third transformer and bringing the second source, which brings redundancy to the system," Hamilton said. He also said the ordinance codifies rates in the city's codified ordinances to keep utility rules consistent with other utilities such as water.

Council members asked how future rate changes would be handled. Hamilton said rate adjustments will be made by subsequent legislation to amend the codified ordinance, similar to how water rates are changed. "We monitor these rates on a consistent basis now," he said, adding that staff will reduce rates when feasible. He also confirmed the effective date was moved from Sept. 1 to Oct. 1 to allow the required notice period for a rate ordinance.

The ordinance passed on final adoption by recorded roll call. City staff said the revenue from the changes is intended to keep the utility functioning and to support system expansion, not to generate profit for the city.

Next steps: the ordinance becomes effective Oct. 1, and staff will continue routine monitoring and propose any future legislative modifications to the codified rates as needed.