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Owatonna utilities present preliminary 2025 rates; water could rise about 10% and average residential bill by $7.12
Summary
Director Olson and Supervisor Linders told the Owatonna Public Utilities Commission a preliminary 2025 outlook could leave electric rates unchanged, raise water rates roughly 10% and produce a combined natural gas impact that increases the average residential bill by $7.12 per month; changes are intended to support a new well and water tower.
Director, Finance & Administration Olson and Supervisor, Accounting Linders presented a preliminary 2025 rates outlook to the Owatonna Public Utilities Commission on Sept. 24, saying the proposal would hold electric rates steady, increase water rates by about 10% and generate a combined 6.6% impact for natural gas that results in an average residential increase of $7.12 per month.
The outlook was framed as preliminary. Olson described key rate drivers, terminology used in rate modeling, and a reserves outlook for the three utilities. He said the water increase is intended in part to help finance a future well and a water tower.
Director, Engineering & Field Services Fenstermacher said the Water Comprehensive Plan shows the utility may need a new well within five years if a large water user locates in Owatonna. He added that well and tower maintenance are ongoing budget items and that four towers are scheduled for cleaning or reconditioning over the next five years. Fenstermacher noted that any new well would need to meet DNR permitting restrictions.
Olson told the Commission staff would incorporate the Commissioners' feedback on the draft Financial Reserves policy and present a revised policy at the October Commission meeting; the reserves outlook was included in the rates presentation.
No formal rate changes were adopted at the meeting; the presentation was the Commission’s preliminary review and staff will return with revisions and next steps at future meetings.
