The City Council of Webster City approved a first reading Monday of a plan that will raise the cost of electricity in Webster City.

Effectively, all users of electricity — industrial, commercial and residential — will see their base and usage rates go up 3% on August 1 this year.

Increases to electrical rates have held steady at 1% each year since 2017.

The city saw an increase this spring of 2.3% in its basic cost to buy and transmit electricity from Corn Belt Power Co-Op, Humboldt; that is what made the rate hikes necessary.

Most electricity used in Webster City is made from burning fuel oil and natural gas at the Earl F. Wisdom Generating Station, Storm Lake, and from coal-fired plants in Council Bluffs and Sioux City. Corn Belt also owns the transmission lines that bring electricity to Webster City.

Both Mayor Pro Tem Logan Welch and City Manager John Harrenstein called the increase in rates “necessary,” and both stated that, even with the higher rates, the cost of electricity in Webster City remains “competitive.”

Beyond the immediate increase in rates, the agenda statement prepared by Harrenstein and Finance Director Dodie Wolfgram contained the following:

“Blair (Metzger, President, DeWild, Grant Record & Associates, of Rock Rapids, IA) has suggested reducing the number of rate classes, and to spread the demand charges amongst more user classes than just the industrial accounts. Due to the complexity of the changes, we feel this discussion could take several meetings prior to coming to a decision, to begin the three readings of an ordinance change. Blair thought we should look at increasing the rates for the needed 3% now, and begin the rate structure changes after July 1.”

At present, the city maintains nine classes of electrical rates, including city and rural residential rates, as well as special rates for those whose homes are equipped for electric heat. A separate category exists for electricity used, specifically, for drying grain in grain bins. The newer, often much larger grain bins, on today’s farms use large amounts of electricity and cause total use to spike each fall when corn and soybean crops must be dried to maintain quality.

Similarly, there are rate classes for commercial and industrial customers, both within Webster City and in rural districts served by the electric utility. Again, there are special rates for each of these kinds of customers who use electricity for space heating.

These rate classes were all established with an eye toward fairness and to ensure the city has adequate power available at all times for everyone and every need. A thorough review of the strategy behind so many rate classes could fundamentally change rates charged for electricity in the city.

Webster City’s electrical utility has been undergoing dynamic change in the past few years. A long-range plan to bury electrical transmission lines in Webster City underground has begun and will proceed in phases until completion, which will be years into the future.

Construction began this spring on Reisner Substation in the city’s southeast industrial park. The substation, which will be far larger than any presently in service, is also expandable should demand from projected industrial or residential growth require it.

New “smart” electric meters, also known as AMI meters, have recently been installed throughout Webster City. They are, in effect, able to read themselves each month, sending data to the city’s electric utility office at City Hall and eliminating the need for meter readers.

The city retains an ability to make its own electricity locally with a 20-megawatt capacity jet turbine. The turbine, powered by diesel fuel, is invaluable when extra capacity is required, especially during peak demand in both very hot, or extremely cold, weather.