Utility rate adjustments go into effect in October

At the Aug. 3 City Council meeting, the Columbia City Council approved rate changes for the Electric, Water and Solid Waste Utilities.

The City designed these rate adjustments to align the cost of providing the service with the rate charged while minimizing the impact of these changes on utility bills. Structuring the rates in this way helps us to remain fiscally responsible. The structure also avoids large, reactionary rate increases in the future.

Based on City of Columbia averages, customers would see an approximately $10 to $15 increase on their monthly bills. Because each customer's rates are dependent on usage, customers should look at their own usage to determine how rate adjustments will impact them. Customers can view their usage and past bills at opens in a new windowMyUtilityBill.CoMo.gov.

Customers who would like to get an estimate as to how the new utility rates could affect them should visit the Utility Rates Calculator at opens in a new windowCoMo.gov/utility-rates-calculator to see how their fiscal year 2027 bills will compare to their current bills.

Electric Utility

The Electric Utility will increase usage fees 6%, but the customer charge will not change.

The City expects this change to increase the Utility's revenue by approximately $8.6 million. These funds will help cover increases in operational costs such as purchased capacity and energy, the expenses associated with power production and high-priority infrastructure projects.

Water Utility

The Water Utility will impose a 10% increase in base fees and usage fees. opens in a new windowStantec Consulting previously recommended this adjustment in its cost-of-service study presented in 2025.

The City expects this change to increase the Utility's revenue by approximately $3.4 million. Utilities will use this revenue to cover increases in operational costs, such as chemicals. It will also continue needed capital improvement projects in the water system.

After the rate adjustments in FY26, bills for customers who have consistent water usage year-round will still be lower than in FY25.

Solid Waste Utility

Based on recommendations in Stantec Consulting's 2026 cost-of-service study, the rate adjustments in Solid Waste were made in order to work toward aligning the rates charged to the current cost to provide the service.

The change is expected to increase the Utility's revenue by approximately $1.5 million in FY27. Future recommendations by Stantec Consulting include 10% increases in FY 28 and FY29 and 5% increases in the following years.

The rate adjustments for residents with curbside roll cart collection would realign fees with the cost of service over the next two fiscal years.

The fees for multi-family residences with bulk containers will also change. For sites where customers pay, the fee will increase from $15.72 to $16.74. For buildings where the landlord pays, the fees will increase from $15.45 to $16.26.

More information, including an explanation of charges for residential and commercial rates, is available at opens in a new windowBeHeard.CoMo.gov/utilities-rates-fy2027.