Casey City Council Approves Electric Rate Hike, Citing Rising Costs

Article Summary: The Casey City Council has approved a 3-cent per kilowatt-hour increase for all electric utility customers to address rising operational costs. The new rate for residential customers within city limits will be 14 cents per kilowatt-hour.

Casey Electric Rate Increase Key Points:

• The City Council on Monday, October 6, 2025, unanimously approved Ordinance #589, raising electric rates.
• The rate will increase by 3 cents per kilowatt-hour across all customer classes, including residential and commercial.
• Officials stated the increase is necessary to keep pace with rising costs, noting the utility is “still behind” even with the adjustment.
• The ordinance also introduces a four-year temporary discount of $0.01 per kWh for all customers, effective from May 1, 2025, to May 1, 2029.

The Casey City Council on Monday, October 6, 2025, unanimously approved an ordinance to increase electric rates by 3 cents per kilowatt-hour for all residential and commercial customers. The move, which officials described as a necessary step to cover rising costs, will bring the new rate for residential customers inside city limits to 14 cents per kilowatt-hour.

The rate adjustment was the main topic of a Public Utility Committee meeting held on September 15, where the increase was initially proposed. During Monday’s council meeting, Alderman Lori Wilson presented the committee’s recommendation.

“Stuff’s going up and we’re falling behind,” Wilson said, explaining the rationale behind the hike. “We’re still behind. This is probably not going to get us where we need to be to begin with, I’ll be honest. But instead of raising it tremendously, this is where we want to start.”

Ordinance #589 amends the city’s municipal code, establishing new rate structures. According to the ordinance, key changes include:

• Residential Customers (Inside City Limits): The rate will be set at 0.140 cents per kilowatt-hour.
• Residential Customers (Outside City Limits): The rate will be 0.158 cents per kilowatt-hour.
• Commercial Customers: A tiered system will charge 0.1322 cents per kWh for the first 100 kWh and 0.1291 cents per kWh for all usage over that amount.
• Minimum Charge: A minimum monthly charge of $25 will apply to both residential and commercial accounts.

In an effort to soften the impact of the rate adjustment, the ordinance includes a temporary discount program. Beginning May 1, 2025, and automatically expiring on May 1, 2029, a discount of $0.01 per kWh will be applied to residential and commercial customers. Additionally, a $5.50 per month discount will be applied to the fixed facility charge for residential customers within the city. These discounts will be itemized on utility bills.

The council will periodically review the new rate structure to determine if future adjustments are necessary. The ordinance passed with a unanimous vote from all council members present.