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Orrville utility director warns of aging wastewater system, previews smart‑meter plan and rate review
Summary
Utility Director Jeff Grager told Orrville City Council the utility enterprise is stable but faces multi‑year infrastructure needs, a roughly $3 million planned smart‑meter rollout, and transmission‑fee exposure that could require future rate changes.
Jeff Grager, Orrville’s utility director, told City Council on April 21 that the city’s three utility enterprise funds together operate on a roughly $50 million budget but face significant near‑ and long‑term infrastructure work, particularly for aging water and wastewater systems.
Grager said the city has met EPA compliance and that the power plant now operates a small fraction of the year under EPA restrictions, noting that "we've met all of our EPA compliance regulations" and that the plant runs about "4 or 500 hours" annually. He said the plant’s reduced operating hours mean the city relies more on other generation projects and on purchased energy, which exposes the utility to transmission fees that are increasing.
Why it matters: Grager said transmission fees and wholesale market volatility materially affect the city’s electric costs and could force rate changes without offsets from local generation. He warned that without the plant’s offsets, "our electric rates would need to be adjusted 40 to 50% higher than where they are right now."
Key details and projects: Grager outlined a prospective 20‑year wastewater infrastructure program to address century‑old mains and described several capital moves made last year, including purchase of a hydro‑excavator and a vacuum truck (a roughly $550,000 investment) and ordering large transformers for a future substation. He also described participation in multi‑community generation projects (hydro, coal and gas assets) that provide a portion of the city’s power supply.
Smart meters and funding: Grager said the city is preparing for a phased smart‑meter installation to provide near real‑time usage data, help detect leaks and allow customer alerts for unusual usage. He estimated the project at about $3,000,000 and said the city had hoped for federal grant support but did not expect substantial funding from Washington; timing could place initial implementation toward the end of the year or next year.
Operational outlook and staffing: Grager noted he plans to retire in June and that his replacement (named in the report) started in November. He described workforce, IT and safety accomplishments — including safety and reliability awards — and emphasized the utility’s plans to pursue a second grid interconnection and continue rate reviews for all three utilities this year.
Next steps: Grager said staff will share further detail with the board and council, including financial breakdowns, and council signaled it will consider rate reviews and capital plans in coming meetings.
