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Milton to require full recovery of gas installation costs; council to phase customer‑charge increases
Summary
Staff recommended charging 100% of actual natural gas service installation costs (rather than the current nominal fee) and proposed to phase an increase of the residential customer charge toward a $25 target; council asked staff to phase increases, consider tiering to protect seniors, and return with concrete steps.
Milton staff asked the council on April 23 to adjust natural gas utility charges to recover costs more sustainably. Staff recommended immediate action to require customers to pay 100% of actual installation costs (the city currently collects about $35 for a meter/set service; staff presented material estimates of about $746 for a short service and $1,136 for a long service). "We get $35 for a gas service; it costs us $1,136.48 in material to put a long service," a utilities staff member said.
As part of broader study recommendations, staff proposed increasing the residential minimum customer charge (currently $12.74) toward a target near $25 and phasing that change over multiple years to reduce hardship. Council members and public commenters raised concerns about impacts on seniors and low‑income residents and suggested a tiered or incremental approach. Staff agreed to return with phased implementation charts and the possibility of a tiered customer charge to protect fixed‑income households.
Council directed staff to bring a May agenda item to implement the installation‑cost recovery (so the utility does not lose money on installs) and to phase the customer‑charge and rate increases through the 2027 budget process. Staff also noted the option to spread larger installation charges over several months if needed and requested a substantial down payment for installment plans.
Next steps: Staff will return to the May meeting with an ordinance or fee schedule to adjust installation charges to actual costs and will present phased customer‑charge models with options for tiering and exemptions during the 2027 budget process.
