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Highland council approves 3% electric rate increase, cites infrastructure and cost pressures
Summary
The council approved Bill #25-22 (Ord. #3382) to raise electric rates by 3% in year one and 1.5% in each of the following two years; Director Dan Cook said the change is projected to generate $863,764 in the first year and to help cover transmission and material cost increases.
The Highland City Council approved an ordinance amending the city electric-rate schedule that will increase residential electric charges by 3% in the first year and 1.5% in each of the next two years.
Director Dan Cook of the Department of Light & Power presented the proposal, telling the council the change is projected to raise approximately $863,764 in the first year. He provided sample customer impacts: a low-consumption customer (389 kWh per month) would see an average monthly increase from about $70.69 to roughly $77.66 (an annual increase of about $83.58), and the average user (908 kWh) would face an increase of about $8.27 per month.
Cook said the department remains "very stable" compared with statewide averages but pointed to rising transmission charges from Ameren and higher material costs for items such as copper, transformers and poles as drivers of the adjustment. He noted that poles have doubled in price since he started with the city and warned that distributed solar and changing usage patterns create uncertainty for future revenues and operations.
Councilman Napper expressed reluctance about raising rates, saying, "I don’t like raising rates and taxes. I would rather cut things first," but the ordinance passed by unanimous roll-call vote.
Mayor Kevin Hemann and other councilmembers acknowledged the sensitivity of rate increases while voting to approve the amendment to the electric-service rate schedule. The ordinance passed at the Feb. 18 meeting.
