Commission Adjusts Utility Rates

After a week of consideration, 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.