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Zeeland reviews utility rate updates and joins MPPA commercial demand response program
Summary
BPW staff presented electric and water rate designs recommending a 1.5% annual electric increase (2026–2028), a $0.015 PCA true‑up, and a 4.9% water revenue increase for 2026; council approved first readings and authorized BPW to join MPPA’s C&I demand‑response program.
BPW General Manager Andrew Boatright presented the utility financial work supporting proposed rate changes for Zeeland’s electric and water utilities at a Nov. 17 study session and regular meeting.
The electric rate design, prepared by Utility Financial Solutions, recommends a 1.5% system rate adjustment effective Jan. 1, 2026 and identical annual adjustments for 2027 and 2028, plus a $0.015 Power Cost Adjustment (PCA) true‑up that establishes a new PCA base rate of $0.060 to better align with higher power supply costs. The council approved the first reading of Ordinance No. 1044 to reflect the new electric schedules and consistent cost‑of‑service principles; a second reading is scheduled for Dec. 1.
For water, staff proposed a 4.9% revenue increase effective Jan. 1, 2026 to preserve reserves, recover inflationary and debt costs, and support ongoing infrastructure reinvestment. Council approved the first reading of Ordinance No. 1045; staff framed the change as part of a multi‑year cost‑of‑service plan initiated in 2025.
Council also voted to authorize Zeeland BPW’s participation in the Michigan Public Power Agency (MPPA) Commercial & Industrial Demand Response Project and directed the BPW General Manager to execute the Master Participation Agreement. The voluntary program (implemented locally through a third‑party, Voltus) compensates participating C&I customers for measured load reductions during grid emergency events and is intended to bolster system reliability while keeping program payments local.
BPW and finance staff said the proposed changes are designed to keep rates cost‑based and financially sustainable while preserving long‑term reliability. The first readings passed unanimously among present members; the council will consider second readings and any final adoption at the Dec. 1 meeting.
