Columbia Water and Light Board recommends 6% electric rate increase
COLUMBIA MO. (KMIZ)
The Columbia Water and Light Board on Tuesday recommended new utility rate increases to the City Council.
The board proposed a 6% rate that would apply to the usage portion of residents' bills, meaning users will pay more for each unit of electricity that is used.
The new increase will not affect the flat base rate of $22.44, which will remain the same regardless of your monthly consumption.
Assistant Director of Electric Utility Gwen Corches said if approved, the new revenue will go to targeting system upgrades.
“The rate increase that's being discussed right now is more focused around existing infrastructure needs, aging infrastructure, new projects that we're facing, such as the Advanced Metering Infrastructure Project, and just our cash reserve levels," he said.
When it comes to the increase, Columbia Water and Board Member David Switzer said without the increase, it could put Columbia Utilities at risk.
“So to not commit to a 6% increase would mean that we would not meet our minimum financial obligation, putting our credit rating at risk, and we can't do things like the other thing we proposed today, which is advanced metering infrastructure, which has all types of benefits for the community," he said.
The proposed advanced metering infrastructure project is something officials say is long overdue and much needed for the city.
“I think it's going to be one of the most transformative projects for the city of Columbia. It's going to give so much agency to every resident and business to look at their bills, being able to see what's driving their peak demands, what's driving their cost," Corches said.
The most-recent increases came in 2023 and was a 6.9% jump, followed by a 2% increase in 2025.
Switzer said that the longer increases are put off, the higher they will be down the line.
"People don’t like rate increases; rate increases are not fun and not enjoyable, but what is worse is when you put them off, and then you need massive, massive rate increases in the future," he said.
He added that everywhere is experiencing electrical influxes.
"The reality is that the electric market in general is in a state of flux. This is what is minimally required for the financial future of the utility to be secured," he said.
Columbia Utilities recently completed an electric infrastructure resource plan that was designed to study the best ways to modernize the electric capacity needs for the city. Corches added with aging infrastructure and expiring power purchase agreements, the city is searching for the most cost-effective way to secure Columbia's future energy capacity.
Corches said that when workshopping the plan, the city looked at sxi different scenarios.
"The last one is more realistic, it is probably the best one because it is a very diversified portfolio, so we will not have all of our eggs in one basket," Corches said.
