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Two Harbors council delays decision on proposed 2025 electric and gas rate increases
Summary
After hearing consultant recommendations on utility rates, the City Council voted to table a proposed April 1, 2025 increase to electric and gas rates for further study.
The Two Harbors City Council voted Nov. 25 to table a proposed increase to the city's electric and gas rates that had been slated to take effect April 1, 2025. The motion to table, made by Conner and seconded by Omarzu, carried with all members present.
Consultant Dave Berg of Dave Berg Consulting appeared before the council earlier in the meeting and recommended adjusting city electric and gas rates, prompting further discussion by council members and staff. The utilities committee had previously met with Berg and Bolton & Menk representatives to review engineering needs and rate options related to Highway 61 and west-end utility projects.
City staff also disclosed that the Finance Committee reviewed Bolton & Menk's phased engineering proposal and recommended a 3.5% proposed levy increase for 2025 as part of broader budget conversations. Councilors raised concerns about manpower and project costs tied to capital work, including the Highway 61 project, before deciding to postpone the rate decision.
By tabling the item, the council left the current rate structure unchanged for now and signaled that staff and council committees will pursue further analysis and public engagement before acting on any utility-rate change.
