Mishawaka Utilities Electric Division Comprehensive Rate Plan Designed to Balance the Needs of our Utility with the financial well-being of our ratepayers

The City of Mishawaka, Indiana, takes pride in providing essential services to its residents, and the Mishawaka Utilities Electric Department plays a crucial role in delivering reliable electric energy to our community and its surrounding areas.

It is with a sense of responsibility and foresight that I bring to your attention the need for adjustments to our existing rates and charges. The current rates, established under Ordinance No. 5729, have served us well, but recent developments necessitate a reevaluation to ensure the sustained efficiency and viability of our electric utility.

Several factors compel us to consider rate adjustments:

1. Inflationary Environment: Since 2020, we have witnessed significant inflation, resulting in a dramatic increase in capital asset costs by as much as 300%-400%.
2. External Energy Market Dynamics: External forces, including shifts towards renewable energy sources and changes in fossil fuel availability, are driving up energy prices. Negotiations and anticipated increases in our energy costs through 2030, particularly in our Wolverine contract rates, demand proactive measures to maintain financial stability.
3. Financial Planning and Stability: Implementing a multi-year rate plan allows us to anticipate and address future financial needs methodically. By gradually adjusting rates between 2025 and 2030, we aim to mitigate market volatility, ensure fixed energy costs for 2030 through 2035, and enhance our ability to forecast financial requirements over the next decade.
4. Infrastructure Investments: Our proposed rate adjustments will enable critical investments in infrastructure upgrades, such as the 4kV to 12kV conversion and the replacement of outdated infrastructure, totaling nearly $11 million and $6.7 million per year, respectively.

In light of these considerations, we have developed a comprehensive rate plan designed to balance the needs of our utility with the financial well-being of our ratepayers. This plan aims to provide predictable, modest annual increases while ensuring the continued delivery of reliable electric services to our community.

Please know that Mishawka Utilities is committed to responsible financial management and the long-term sustainability of our electric utility. The recently proposed ordinance will enable us to meet the evolving needs of our community and uphold our commitment to providing quality services to our residents.