The city of South Haven could be updating the way it sets rates for customers of the municipal electric utility.
Speaking at this week’s meeting of the South Haven City Council, City Manager Kate Hosier said the public works department has been studying how the city could make changes to the rate structure more quickly in response to market conditions.
“Not just with the electric, but with the water-sewer,” Hosier said. “We’re finding that we need to be more facile with our rates and that we should be looking at them as a resolution that can be adopted as rates need to be adjusted.”
Public Works Director Dana Burd said the department has done a “cost of service” study, looking at what the city is charged for the power it uses. It came to a few conclusions.
“In general, it’s been about a decade since any rates were adjusted on the base fees or the commodity side of things, but we also didn’t have a rate for EV charge stations,” Burd said. “So this would not be a charge station in anyone’s home. It would be the commercial charge stations that are becoming more and more prevalent in the community. in the community.
Those electric vehicle charging stations would be given their own special rate class.
Burd said the city council right now sets electric rates via an ordinance, which requires two public readings and two votes. It was asked to approve an ordinance amendment changing that to allow for rate adjustments by resolution instead. That way, only one vote would be needed.
The council approved a first reading on the ordinance amendment with member Mary Hosley voting no. She said more time should be required to change utility rates so residents have a chance to chime in.
