Council amends and approves electric-rate ordinance, limits residential increase to $0.1411/kWh

The Baldwin City Council on Monday adopted an amended electric-rate ordinance after hours of discussion about fund reserves, debt-service mechanics and customer burden. The amended Ordinance 15-32 sets the residential rate at $0.1411 per kilowatt-hour, increases demand/commercial/demand-related rates by 1%, and uses a three-year average for the monthly debt-service fee to smooth year-to-year spikes.

Councilmembers and city staff framed the vote as a balance between protecting bond-rating and reserve targets and minimizing consumer pain. "If we don't raise either of those rates, the bond deficit could grow and we'd end up with a lower reserve," said Russ (staff member), summarizing staff forecasts. He told the council that the 2.43% option would project the electric reserve near $900,000, while taking no action could leave it nearer $630,000 by one forecast.

Several council members pushed for a smaller near-term impact on households. Councilmember Scott proposed the amendment that ultimately passed, arguing it would address debt-service shortfalls without a larger kilowatt-hour increase for residents. Under the amended approach, staff estimated the difference for a typical residential meter at roughly $2.88 per month compared with larger single-year increases.

Supporters said the three-year averaging of the debt-service fee reduces volatility from large capital additions, like the substation, while preserving progress toward the city's reserve policy. Opponents cautioned about cumulative effects of multiple utility increases already under consideration.

The ordinance passed by roll call after the amendment was seconded. The council directed staff to include the specific per-kWh numbers in the final ordinance text and to continue monitoring reserves and grant or bond timing.