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Highland staff outline power-cost adjustment, solar credit increase and upcoming rate changes
Summary
Light & Power Director Dan Cook told the council the power-cost-adjustment (PCA) varies monthly and is currently in the $0.1050–$0.1250/kWh range; the Fair Solar Credit will rise from $0.039 to $0.072/kWh effective May 1 and several base-rate and per-kWh charges will increase under a 2025 schedule.
Light & Power Director Dan Cook briefed the Highland City Council on May 18 about how the city’s electric rates are structured, upcoming per-customer base-rate changes and an increase in the Fair Solar Credit that will be reflected on June bills.
Cook said the city’s base retail rate is $0.10 per kilowatt-hour and described the power-cost-adjustment (PCA) — charged monthly to cover wholesale purchase cost fluctuations — currently running in the range of $0.1050 to $0.1250 per kilowatt-hour. He explained the PCA is applied on a per-kilowatt-hour basis as IMEA-related costs are incurred.
Cook reported the Fair Solar Credit paid to qualifying solar producers was $0.039/kWh last year and will increase to $0.072/kWh effective May 1, to appear on June billing cycles. He also summarized meter base-rate increases that were adopted in 2025 and are being phased in: the residential meter base will rise from $25 to $27 monthly, with the per-kWh charge moving from $0.1034 to $0.1050; commercial and industrial base rates and per-kWh charges will increase modestly as well. "With these increases we are 25% lower than the State average," Cook said, adding that he felt the utility’s response time to outages remains strong.
A citizen had asked earlier about how the PCA is determined; Cook’s explanation tied PCA adjustments to IMEA expenditures and a monthly reconciliation process. Councilmember Sloan also raised, during public comment, separate concerns about scooters and e-bikes and whether new state rules will affect local enforcement; Chief Widman is preparing a report for council consideration.
No rate ordinance changes were proposed at the meeting; Cook’s report conveyed how adopted schedule changes and the PCA will affect bills moving forward.
