City adopts revised electric rate structure, suspends operational cost adjustment

The Goodland City Commission voted to adopt Ordinance 18-08, changing how the municipal electric utility spreads costs so customers see steadier monthly bills.

Kent, the city manager, told the commission the measure replaces the variable operational cost adjustment with modestly higher base charges "so it's every month, yeah, it'll be more as far as the base unit charge, but there won't be an additional cost that sometimes is x and then sometimes is 3 times x." He said the goal is to make bills more predictable for residents while ensuring the utility can cover rising purchase costs.

The ordinance follows recent notices from wholesale suppliers that raised Goodland's expected power costs for 2026. Kent said the city had included the supplier notices in the packet and recommended suspending the OCA section while monitoring results and returning to the commission after a few months to evaluate whether the change met the utility's needs. "We have not raised electrical rates for several years," Kent said, noting wider industry increases among regional providers.

Commissioners asked technical questions about the tariff categories for residential, small commercial and large commercial customers and how demand factors affect large commercial rates. Staff said large commercial customers are a small portion of the total customer base and are measured with a demand factor that explains higher per-unit charges. The ordinance also adds an additional high-end usage tier intended to modestly increase charges for the heaviest users.

The commission approved the ordinance on a roll call vote. Staff said the new rate schedule would take effect with January usage billing and that suspending the OCA would permit the city to smooth wholesale-price shocks while preserving a contingency if extreme cost spikes occur.