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Vermillion council approves two-step electric rate increases for 2026 and 2027
Summary
The Vermillion City Council approved a resolution adopting the 2026 and 2027 portions of a multi‑year electric rate plan recommended in a 2024 study with Missouri River Energy Services; staff said residential rates will rise roughly 2% for single‑family customers. The increases take effect with billing after March 15 each year.
The Vermillion City Council on Jan. 20 approved a resolution to implement the second and third years of a previously recommended three‑year electric rate plan.
City Manager John Prescott, presenting staff findings from a 2024 rate study done with Missouri River Energy Services, said the resolution includes proposed rate changes for both 2026 and 2027 and that the changes would be applied to bills after March 15, 2026 and March 15, 2027. “It's roughly about a 2% rate increase for residential single family,” Prescott said during his presentation.
Prescott and utilities staff said the earlier, first increase adopted in 2025 was a response to higher wholesale costs, capital needs and material price increases; Missouri River Energy Services raised its rate this last year, and wholesale cost pressure and capital improvements were cited as contributors to the need for additional increases. Staff also noted a separate customer service charge that helps fund infrastructure and capital improvements.
The utilities committee reviewed the updated numbers in December and recommended forwarding the proposal to the full council. Councilors asked for and received comparisons to nearby municipal utilities and investor‑owned utilities; staff said Vermillion remains toward the low end compared with similarly situated municipal systems.
Councilor Hallig moved to approve the resolution; Councilor Holland seconded. The motion carried by voice vote.
The council’s action directs billing changes described in the resolution to take effect with the billing cycles after March 15 of each respective year. The council will receive implementation details and any customer‑notice materials from staff as the effective dates approach.
