The Trenton Municipal Utilities (TMU) committee is seeking another review of last year’s electric rate study. This decision follows the committee’s examination of TMU financial reports during a meeting held Tuesday afternoon. Utility Director Ron Urton noted that the electric fund has been decreasing. Urton plans to update information on the electric rate study and present it at a future Trenton City Council meeting.
Toth and Associates conducted a cost-of-service study on Trenton’s electric rate structure, recommending a 10.6% increase over five years.
In a November 2023 meeting, the council rejected a motion to impose a 2% increase, phased in over five years. The Toth study indicated that the increase would help Trenton cover its capital plan and annual debt service while maintaining its cash position. It would have increased rates across all service classes in Trenton: residential, commercial, and large industrial. Without an increase, the Toth study concluded that the electric department’s operating margins would decrease due to expected increases in costs to purchase power and general inflationary pressures.
Several years ago, the council set a policy requiring a minimum of $2.5 million in reserves for the electric fund to address emergencies or other needs. Urton has previously indicated that the next major project for the TMU electric department is upgrading the power distribution system.
Attendees at the committee meeting included Marvin Humphreys, Tim Meinecke, Duane Urich, the mayor, city clerk, assistant city clerk, and department heads.
