The rising cost of generating and providing electricity will impact local electric rates. Sioux Center Municipal Utilities is considering a small increase in electric rates starting at the end of this year.
Sioux Center has a community-owned electric utility, and about 25% of Sioux Center’s power mix is from federal hydroelectric dams on the Missouri river, and the remaining 75% is purchased through our energy provider Missouri River Energy Services (MRES), a mix of what they generate and what they purchase from the energy market.
The agency who sells power from the federal dams, Western Area Power Administration, raised its rates last year and will raise its rates again this coming year. The rates for power generated and purchased through MRES are also increasing. In addition, Sioux Center’s costs are also increasing as we work to maintain reliable electric service.
To keep Sioux Center from falling behind, the City Council is considering a 5% rate increase for electric use starting Dec. 23. The council approved the first reading of this change this week and will review it at two more council meetings this fall.
For an average family of four, this increase would likely be about $4 on a monthly bill. A smaller household would likely see an increase of around $2-$3.
This is the first electric rate increase since 2018.
In the coming year, Sioux Center will undergo a rate study to consider current and future costs, including the cost of constructing roughly 11 megawatts of local electric generation, and study how to divide that cost appropriately among the different sized users in Sioux Center.
“Because we’re not investor-owned, when we raise rates, it’s just us asking customers to more accurately cover cost of the electricity they use. It reflects increasing costs of generating and transmitting electricity within our region and nation,” said City Finance Director Darryl Ten Pas. “Updating our rates will help us continue to provide electricity and maintain reliable service in Sioux Center.”