Boulder City advisory panel reviews rate-study options, weighs loans and reserve targets to limit electric bill hikes

The Utility Advisory Committee on Wednesday heard a detailed presentation from consultant FCS Group on revenue needs for Boulder City—s electric, water, wastewater and landfill utilities and debated how to balance large capital needs, reserve targets and rate impacts.

Consultants led by Melanie Hobart said the study—s baseline (no-rate-change) would deplete some utility fund balances by 2028—notably electric, where a roughly $71 million 10-year capital plan is the primary pressure point. Hobart said the study uses a 2026'2035 forecast, assumes 90 days of operating reserves and a 2%-of-assets capital reserve. She gave two paths for electric: a stand-alone approach that would require larger immediate increases (an illustrative 9% in 2027 followed by smaller increases) and an interfund-loan strategy that would cap near-term increases at about 5% per year but draw on other utility reserves.

"We are not raising rates to build reserves. We—re raising rates to cover the other costs while we maintain the reserves," Hobart said, explaining that all utilities currently start above the recommended targets but that…