Hallock council approves gas commodity hike to $6.00 and new meter charge

The Hallock City Council voted 4–1 on Dec. 16 to raise municipal natural gas commodity rates for both residential and commercial customers to $6.00 and to adjust usage and meter charges to help cover infrastructure costs.

City Administrator Kendra Kroening briefed the council on recent procurement activity and recommended changes to the rate structure. Kroening described recent NYMEX trades (recorded in the minutes as "$4.18 (40%) volumes through October2031" and "$3.73 (35%) Volumes through October 2031" with physical basis adjustments expiring October 2027) and proposed adding an $8.00 meter charge plus usage fees she listed as residential $1.15 per ccf and commercial $1.10 per ccf. Kroening said she had discussed the idea with MMUA representative Dennis Danielson, noting that he “recommends all cities have a standard meter charge with no usage. This will help cover costs of meter replacements and overall gas part costs.”

Councilor Kevin Waller moved to increase the commodity price from the existing $4.25 (residential) and $4.00 (commercial) to $6.00 for both customer classes and to set usage charges to $1.05 per ccf residential and $1.00 per ccf commercial. The motion carried 4–1, with Councilor Michael Totleben recorded as voting against the measure; the minutes do not record a second.

Councilors discussed seasonal usage and Viking pipeline demand charges, with a demand charge cited in the minutes as $3,192.16 for the capacity held on the Viking pipeline (MDQ 568), which increases per-customer costs when system usage is low. The council and administrator characterized the meter charge as a way to stabilize revenue for meter replacements and gas infrastructure costs.

The council’s approved rate structure will be reflected on future customer bills; the minutes do not specify an effective date for implementation.