Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Rates topic
No spam. Unsubscribe anytime.
Staff urged to file simplified water rate increase after PSC approves higher electric rates
Summary
Auditor and staff briefed the board on recent PSC action and recommended using a simplified water rate filing (3% inflationary increase) to help restore authorized returns after the electric rate of return declined to 0.62 in 2025.
Auditors and staff discussed recent activity at the Public Service Commission and the possible near‑term effects on utility revenue. The presenter said the electric authorized rate of return had been roughly 4.9% under the existing structure, with the utility’s actual rate of return falling to 0.62 in 2025; he said the PSC had recently approved a higher authorized electric rate and that the city will implement that change after final PSC action.
On water rates, staff and the auditor said the utility qualifies for a "simplified" rate increase that would allow a 3% inflationary adjustment without a public hearing, and the auditor recommended filing that simplified case as a near‑term step. "You just received notice recently from the Public Service Commission that your utilities does qualify for what we call a simplified rate increase... they'll give you a 3% increase in your rates," the presenter said. Board members asked whether simplified filings would limit later full rate studies if the city pursues major capital borrowing; the auditor said simplified increases are temporary and a full rate study will be required if the city moves to larger capital programs.
