NOVEMBER 27, 2024:
The Pierre City Commission has increased the city’s electric, water, and wastewater utility rates by 3 percent. The city estimates the change will increase the average customer’s bill by $6 a month.
“We haven’t done it for a few years, and it’s not our favorite thing to do,” said Pierre Mayor Steve Harding. “But the utility rates must support utility operations and capital expenditures, and both require an increase.”
The electric rate adjustment will help cover the increased cost of purchasing power, as well as infrastructure improvements. The water adjustment will help pay for the new water meters the city must install city-wide to replace a system that is quickly becoming obsolete. The wastewater increase will help replace 25-year-old clarifiers at the treatment plant.
Palmer added that the city actually lowered the electrical rates in 2019, and this is the first adjustment since then. Wastewater rates have held steady since 2021 and water rates since 2022.
“When you compare our rates to others throughout the state, we’re in the middle of the pack for both water and wastewater and on the low end for electricity,” Palmer said.
Mayor Harding said that the city’s reasonable rates are impressive given the condition of Pierre’s utility infrastructure.
“Barring any unforeseen issues, our utilities should be set to go without needing any major overhauls for the next 20 years,” said Harding. “The commission has kept a close eye on those services.”
The rate increase will go into effect Jan. 1. For full ordinance language, visit cityofpierre.org.
NOVEMBER 22, 2024:
The Pierre City Commission is considering a proposal to increase the city’s electric, wastewater and water usage rates by 3%.
After a few years of steady numbers, Utilities Director Brad Palmer says the increase is needed to cover both capital and operational costs.
In total, Palmer says residential customers will see a roughly $6 increase in their monthly bill.
In comparison, Palmer says Pierre’s water, electric and wastewater utility rates are in line with communities around the state.
The proposal will be back before the city commission for consideration and final action at their meeting next week (Nov. 26, 2024). If approved, the rate increase would go into effect Jan. 1, 2025.
For full proposed ordinance language, visit cityofpierre.org.
WRITTEN VERSION:
The Pierre City Commission is considering a proposal to increase the city’s electric, wastewater, and water rates.
The proposal, brought forward by city staff at this week’s commission meeting, calls for a 3% increase to each of the three utility rates. According to staff, the increase is needed to cover both capital and operational costs.
“The price of doing business doesn’t often decrease, and that’s the case here,” said Brad Palmer, City Utilities Director. “We have some major capital expenses in each of our utilities, as well as ongoing operational expenses.”
Palmer added that electrical rates haven’t changed since 2019, wastewater since 2021, and water since 2022.
“We try to limit increases; we can only hold off for so many years before an increase becomes needed.”
The proposal will come back to the commission at their Nov. 26 meeting for consideration and final action. If approved, the rate increase will go into effect Jan. 1.
For full proposed ordinance language, visit cityofpierre.org.
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