Cost of Service

Cost of Service

The City of Stillwater is a cost-of-service driven utility. This includes all the direct costs involved in running or performing services, which may include equipment, maintenance, construction, expansion, and more. 

Our goal is to ensure that we are continually working towards developing and maintaining rates that are equitable for all of our customers.

2020 Studies

  • Avant Energy conducted a cost-of-service and rate study for electric, water, wastewater utilities. This is the first rate study for electric since the 1980s. Water and wastewater have had two rate studies in the past 10 years.

    • Goals:

      • Move rates towards cost of service

      • Limit rate increases to the extent possible

      • Drawdown cash balances as an alternative to rate increased when possible

      • Set rates that allow each utility to be financially stable

      • Set rates that are competitive with SUA’s peers.

  • NewGen Strategies and Solutions conducted a rate study for Waste Management services. This is the first rate study performed by a consultant. Prior rate studies have been conducted by City staff.

    • Goals:

      • Determine the cost of providing solid waste services

      • Equitably distribute the costs to the appropriate customer classes

      • Design rates to safeguard the financial integrity of the utility