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Council approves 3% electric rate increase to rebuild reserves and cover substation costs
Summary
Following an electrical-rate study and discussion of the substation project and reserve use, the council adopted a 3% electric rate increase effective in August to replenish roughly $1.5 million used from reserves and to address future capital needs.
Granite Falls City Council voted to implement a 3% across-the-board electric rate increase, effective in August, following presentation of a triennial rate study and discussion of reserves tapped for a substation project.
City staff presented the study and explained the recommendation; staff said roughly $1.5 million in reserves was used for the substation, and the 3% increase is intended to rebuild reserves, address inflationary pressures and cover future capital items such as new meters and, long-term, generator replacements. "That full 3% is because of this project because we're utilizing a little over 1.5 million in reserves," staff said during discussion.
Council members asked about the composition of the increase; staff characterized it as about 1% for normal baseline adjustments and an additional 2% specifically to replenish reserves drawn for the substation. After discussion about future needs and timing, the council moved and approved the 3% increase by voice vote. The public hearing on the rate was closed prior to the council action.
