After cost-of-service study, Zeeland BPW directs staff to pursue rate design with modest residential charge increase

Mark Beauchamp, president of Utility Financial Solutions, presented the Zeeland Board of Public Works with the results of an electric cost-of-service study at the Oct. 14 meeting. After questions and commissioner input, the Board directed staff and the consultant to proceed to the next phase: rate design based on a 1.5% overall average increase and a $1.00-per-month increase to the residential customer charge.

Beauchamp reviewed cost allocations that underpin rate design and took commissioner questions that staff said would inform upcoming decisions on how to structure charges across customer classes. Commissioners emphasized the need to balance revenue stability with customer affordability; the 1.5% average increase and $1.00 residential customer charge were offered as the basis for staff to develop specific rate schedules.

ACM/Finance Director Plockmeyer provided context on FY2025 financials and noted the Water Utility anticipates a separate water-rate adjustment effective Jan. 1, 2026. The Board did not adopt a formal electric or water rate at the meeting; the action was a directive to staff to advance rate design work. Next steps include staff and the consultant producing proposed rate schedules for Board review and potential public outreach as required by policy.

The Board’s direction does not itself change customer bills; any final rate adjustments will require separate Board action and formal noticing as appropriate.