Fillmore Council adopts small electric rate increase to bolster utility reserves

The Fillmore City Council on May 26 adopted Resolution 26-07, increasing the city’s residential and commercial electric rates by $0.0025 per kilowatt-hour.

Councilmember Eugene R. Larsen summarized the rationale in support of the change, saying the city must maintain enterprise fund reserves after unpredictable events and rising wholesale power costs. “Small and steady increases are better than large infrequent ones,” Larsen said as he described the need to plan for equipment failures and fluctuating energy prices. During the public hearing, a resident asked about the effect on household bills; the council said the change would amount to roughly $4.00 per month per household.

The council debated the rate in the context of past experience: members recalled the 2016 loss of the Creamery Substation and noted current purchase rates near $0.11 per kilowatt-hour. Larsen argued that steady reserve-building protects the city from taking emergency loans that would force larger rate hikes. The motion to adopt Resolution 26-07 passed on a roll-call vote (mover: Councilmember Larsen; second: Councilmember Michael B. Winget) with votes recorded as Larsen — Yes; Winget — Yes; Rausch — Yes; Alldredge — Yes. Councilmember Kyle Stevens was excused from the meeting.

The resolution amends Article VII, Utility Rates, Section A, Electric, of the Fillmore City Fee and Rate Schedule. Council materials and the ordinance language were presented during the meeting; the council did not attach a phased implementation or sunset date to this increase. Next steps: the resolution will be included in the city’s fee schedule updates and posted with meeting minutes.