Published on August 27, 2026
On July 27, 2026, the Board of Aldermen approved changes to the City’s electric rate structure following completion of the City’s electric cost-of-service study by Allgeier, Martin and Associates, which began in November 2025.
The electric rate structure was last evaluated by a third-party company in 2019. Since then, the cost of purchasing power, maintaining the electric distribution system, replacing aging infrastructure, and providing electric service has increased significantly. The study showed a gap of more than 20% between current residential rates and the actual cost of service, with rates being lower for residential customers and higher for commercial customers.
The updated rate structure is intended to improve the long-term financial sustainability of the electric utility while ensuring electric rates remain fair, equitable, and reflective of the cost to provide service.
Customers will begin seeing the updated rates reflected on their September electric bills.
Here’s what to expect:
Residential customers will move to block rates, providing more predictability and greater control over monthly electric costs based on usage.
Commercial and Industrial customers will be classified based on usage and load factor.
The current Energy Cost Adjustment (ECA) will be replaced with a Purchased Power Adjustment (PPA) designed to more accurately reflect wholesale power costs. Customers can expect to see a significant reduction in the adjustment under the new structure.
Customers may request to be moved to a different rate class by submitting an application to the City. The City will review the account to determine whether it meets the requirements for the requested rate class.
The City will conduct an annual review of all electric accounts during the month of October using demand data from the preceding June through September billing months. If the annual review determines that an account qualifies for a different rate class, the City will reclassify the account effective with the first billing cycle following the October review.
