The Logan Municipal Council has tabled a scheduled workshop discussion regarding proposed electricity rate hikes for residential, commercial, and industrial customers. The postponement occurred during a meeting on Aug. 4 after discussions regarding data center regulations extended past 7 p.m.
The council is expected to review Resolution 26-27 at its next meeting on Aug. 18. Proposed by Logan Light & Power Director Mark Montgomery, the resolution recommends an overall electric rate increase of approximately 2.5 percent beginning Sept. 1.
According to Montgomery, the hikes are necessary to cover the costs of power purchased on the commercial market and expanding infrastructure, such as poles, wires, and substations. The resolution notes that the cost of power purchased by the city rose from $25 million in 2022 to $30 million in 2025, a 20 percent increase in three years. Additionally, the city has invested $34 million in system upgrades and substations over the last two years using utility savings.
The proposed rate changes aim to modernize cost recovery by replacing a 2006 fuel-cost adjustment mechanism and ensuring mid-size load customers fund required substation upgrades. A separate rate framework for very large load customers, such as data centers, is currently being developed under a 180-day moratorium approved in late June.
Under the proposed schedule, a typical residential home consuming 800 kilowatt hours monthly would see a monthly bill increase of about $2.90, from $104.62 to $107.52.
A small commercial shop consuming 3,000 kilowatt hours monthly would see a rise of approximately $11.65 per month, from $374.75 to $386.40. For a medium-sized business consuming 15,000 kilowatts monthly, the bill would increase by about $44.05, from $1,729.15 to $1,773.20.
Montgomery stated that even with these increases, a typical Logan home would still pay less for electricity than it would if serviced by Rocky Mountain Power.
Logan City Light & Power, established in 1904, operates hydro, natural gas, and solar facilities producing over 18 megawatts locally. The utility also contracts additional power from regional suppliers, including the Utah Associated Municipal Power System (UAMPS).
