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Red Bud council approves utility rate study, caps contract at $27,500
Summary
City council voted to hire a consultant to update utility rate structures, including possible demand-rate classes for commercial customers; staff said the study is meant to reassess rates last reviewed in 2011.
The Red Bud City Council voted to approve a consultant-led utility rate study, authorizing a contract not to exceed $27,500.
Public Works staff member Josh told the council the city has not updated electric rates since 2011 and recommended a study to evaluate rate structures, potential user fees and a demand-rate class for some commercial customers to help recoup costs. "We haven't done anything with the electric R since 2011," Josh said, describing the study as an effort to review the city's rate classes and fees in light of increasing solar adoption and changing demand patterns.
Council members discussed budgeted figures; staff said they had budgeted $35,000 for the work but received lower estimates and proposed an authorization up to $27,500 to cover the engagement. Alder person Dean moved the motion to approve the study at the capped amount; the motion was seconded and passed on roll call.
The study is intended to produce recommendations for whether to change residential user fees, adjust usage rates for different classes and add demand charges for larger commercial users. Council did not set a timeline for the study's completion during the meeting.
