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Council approves utility rate study to reassess electric and other rates
Summary
The council approved a consultant-led utility rate study to review rate classes and demand charges; staff said electric rates have not been updated since 2011 and the contract was approved with a not-to-exceed limit discussed at $27,500.
The Red Bud City Council voted to hire a consultant to conduct a comprehensive utility rate study to reassess electric and other utility rate structures.
Council members approved the contract after staff said the city has not substantially revised electric rates since 2011 and that the study could examine rate classes, user fees and a possible demand‑charge class for commercial customers. Josh, introduced by meeting leadership as the presenter from Public Works, told the council: "we haven't done anything with the electric rates since 2011," and said the study would identify whether new rate classes or changes to user charges are needed.
Staff said they budgeted $35,000 for the project and received an initial proposal near $22,000; the council approved proceeding with a consultant engagement with a not‑to‑exceed authorization discussed at $27,500. The motion passed on roll call.
The study is intended to inform potential future ordinance or fee changes, and staff said it will return to the council with findings and any recommended amendments to rate schedules.
Next steps: staff will execute the contract within the approved not‑to‑exceed amount and report back with a timeline for the study and any proposed rate-structure changes.
