COLUMBIA — Columbia Utilities is raising the price of most utilities on Thursday as the department looks to combat rising operation costs.
Erin Keys, the utilities director for Columbia, said the department targeted usage fees to let people decide how much they can afford. She said a raise in fixed-cost fees would end up with some customers being subsidized by others.
Customers will see their usage fee increase 6% for their electric bill, but the city isn't raising the fixed-customer cost. Keys said that small raise will amount to $8.6 million.
"The average price in 2025 was $36.14 a megawatt ... And in that same time period this year, it was up to $44.50 a megawatt," Keys said. "So that's a 23% increase in that time period for what we're paying for energy for all of our electric customers."
According to the city's utility rates calculator, a three-bedroom home would see its electric bill jump around $12, while its total bill would increase by $15.
"Costs are going up," Keys said. "We want to continue to provide excellent service to our customers, continue to maintain our existing systems and to do the capital improvement projects that we have planned ... we needed a rate increase."
All the revenue from each utility can only be spent on maintenance or further development of that utility. The electric revenue will help fund two substations around town.
Water rates are rising as well, and residents will see both their base and usage fees jump 10%.
"The sewer rates are changing, but overall there is a net-zero overall increase," Keys said.
Keys said the department hired a consultant who analyzed its systems and offered recommendations, like lowering the base fee while raising the usage fee. This means if residents don't use the sewer as much, they might actually save money on their next bill.
This may not stick around for long though, as the city looks to increase sewer fees across the next two years.
"Those that use the 35 gallon container, their bills go into $14.53 a month. Those that use a 65 gallon container will go to $18.28 a month, and then those that use the 95 gallon container will be at $22.50 a month," Keys said.
Solid waste is also seeing a $1.5 million-revenue increase. The hike does apply to multi-family homes and commercial customers.
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