Willmar maintains mid-range water rate ranking despite increases

Jennifer Kotila, West Central Tribune, Willmar, Minn.
·2 min read

Jun. 27—WILLMAR

— Each year,

Willmar Municipal Utilities

completes an

American Public Power Association

performance indicators survey, as well as an

Advanced Engineering and Environmental Services

survey comparing its performance and rates to other regional power and water utilities.

Despite water rate increases due to the new water treatment plant, Willmar Municipal Utilities continues to maintain its spot in the middle of the water rate rankings list that compares the water rates of 31 utilities across the state of Minnesota with 5,000 or more customers, excluding the Minneapolis and St. Paul area.

Willmar placed 17th of 31 utilities this year with a rate of $33.93. The highest water rates were in Fairmont, at $82.73, and the lowest in Albertville, at $11.13.

For the performance indicators survey, rates are compared to other utilities within the North Central/Plains region with sales to consumers that account for approximately 50% or more of their total sales, and that have retail sales or sales for resale of 150,000 megawatt-hours or more, according to Finance and Office Services Supervisor Andrea Prekker.

"In Willmar, we have very respectable stats in comparison to the North Central Region," said General Manager John Harren. " ... It's something to be proud of, that our reliability that we have here, the quality that we have here, and maintaining that based on staying within the average cost of providing service, so we're very respectable."

Prekker pointed out three notable ratios in the American Public Power Association survey, including the revenue per kilowatt-hour ratio, the operating ratio and the current ratio.

The revenue per kilowatt-hour ratio measures the revenue received for each kilowatt-hour of electricity sold to all classes of customers, including residential, commercial, industrial, public street and highway lighting and other customers. The local ratio was $0.101 compared to the North Central/Plains median of $0.094.

The operating ratio measures the proportion of revenues received from electricity sales, rate adjustments and other electric activities required to cover the operation and maintenance costs associated with producing and selling electricity. The Willmar Municipal Utilities ratio was 0.732 compared to the North Central/Plains median of 0.851.

The current ratio measures the utility's short-term liquidity, or ability to pay bills, taking a snapshot of the utility's liquidity at a point in time. The ratio can vary considerably at other times of the year. Willmar Municipal Utilities' ratio is 2.90 compared to the North Central/Plains median of 3.11.