A proposed electric rate increase in Sioux Center is one step closer to approval.
The Sioux Center City Council on Tuesday unanimously approved the second reading of an ordinance that would increase electric rates by seven percent in both 2026 and 2027.
City officials have said the increases are needed to address rising wholesale power, generation, and system maintenance costs while continuing to provide reliable electric service.
While the 7% figure may sound significant, city officials said the impact on most residential customers is expected to be only a few dollars per month, depending on usage.
Finance Director Darryl Ten Pas says one person planning to move to Sioux Center had concerns about the proposal at first.
“I got someone else in Ames from a person that’s going to be moving here. ‘What are you doing? Raising my rates?’ Once I explained it, he was pretty well happy. So news is getting around,” Ten Pas said.
City Manager Scott Wynja says another resident’s perspective changed after learning what the increase would actually mean on a monthly bill.
“To hear seven percent maybe seems like a lot, but the dollar amount is pretty low in perspective,” Wynja said.
Ten Pas also noted that the average customer could see an increase of roughly $14 per month in their overall city utility bill, though that figure includes electric, water, sewer, natural gas, storm water, and garbage services, not just electricity.
The first reading of the electric ordinance took place on June 1. The ordinance will return to the Sioux Center City Council for a third and final reading on July 7.
