ORDINANCE NO. 2589

AN ORDINANCE AMENDING SECTIONS 15-208, 15-209, and 15-210 OF ARTICLE 2 OF CHAPTER XV OF THE CODE OF ORDINANCES OF THE CITY OF STERLING, KANSAS, AND AMENDING OR RESCINDING ORDINANCES IN CONFLICT HEREWITH. 

WITNESSETH:

WHEREAS, the Governing Body of the City of Sterling, Kansas, has determined it advisable to increase the electrical rates to its customers as established at Section 15-208 of the Code of Ordinances of the City of Sterling, Kansas, as amended; and

WHEREAS, the Governing Body of the City of Sterling, Kansas, has determined it advisable to increase the fuel and energy cost adjustment, as set forth at Section 15-209; and

WHEREAS, the Governing Body of the City of Sterling, Kansas, has also determined it advisable to increase the electrical service charge as set forth at Section 15-210.

NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF STERLING, KANSAS, AS FOLLOWS:

SECTION 1.  Section 15-208 of Article 2 of Chapter XV of the Code of Ordinances for the City of Sterling is hereby amended to read as follows:

“15-208. CLASSES OF SERVICE; RATES.  

The following rates are established for all con-
sumers purchasing electrical energy from the
municipal electrical plant and system of distribu-
tion of the city as set out in the several classes
of service:

(a)  Residential Rate. $ per kWh

(1)  0-150 kWh $0.0544

(2)  151 kWh and above $0.1113

(3)  Available for all electric service supplied to
one customer through one metering point and
to be used exclusively for domestic purposes.
Service is for exclusive use of customer and is
not to be resold or shared with others. Where
two or more dwelling units such as duplexes,
apartments, and trailer homes, each having
separate kitchen facilities, are served through
one meter, then this schedule may be applied
by multiplying the KWH blocks by the number
of dwelling units served, or at the option of the
city the commercial rate will be applied. Where
more than four rooms in a residence are rented,
or are available for rent, such residences shall
be considered as commercial rooming houses
and billed on commercial rate.  Residential rate
is not available to residential premises used for
commercial purposes; however, if the customer’s
wiring is so arranged that electric service for do-
mestic and non-domestic purposes can be me-
tered separately, then this scheduled rate will
apply to that portion used for domestic purposes.
Service will be alternating current, single phase, 

approximately 60 cycles, and at voltage the city 

has available for service required.

(b)  Commercial Rate. $ per kWh

(1)  1-150 kWh $0.0487

(2)  151 kWh and above $0.0925

(3)  Available to commercial businesses con-
ducting a gainful enterprise. Service is for ex-
clusive use of customer and is not to be resold
or shared with others. Service shall be alternating
current single phase, approximately 60 cycles,
and at voltage the city has available for service
required. In the event the customer orders a dis-
connection and re-connection of service at the
same location within a period of 12 months,
then the city may make a charge of $15 per
each connection.

(c) Renewable Parallel Generation-

    Residential Rate $ per kWh

(1) 0-150 kWh $0.0544

(2) 151 kWh and above $0.1113

(3) Demand Charge: $4.53/Kw per month X
RGC. (RGC) Rated Generator Capacity=Rated
output capacity of customer-generator’s facility 

(4) Customer must complete and submit to the
Utility the Renewable Energy Parallel Genera-
tion Application for Service in Part 7. The utility 

shall not approve a Customer-owned Genera-
tion Facility Interconnection Application for
Service. Terms and conditions of service are
contained in the Renewable Parallel Generation
– Residential Service rate schedule, Intercon-
nection Standards for Installation and Parallel
Operation of Customer-Owned Renewable
Electric Generation Facilities 25kWAC or less
for Residential service and 200kWAC or less
for Commercial service. Customer must partici-
pate in the electric Utility’s Renewable Parallel
Generation – Residential Service rate schedule
or Renewable Parallel Generation – Commercial
Service rate schedule if the customer wishes to
receive credit for any excess energy generated
by the customer and delivered to the Utility.

(d) Renewable Parallel Generation-Commercial
      Rate $ per kWh

(1) 0-150 kWh $0.0487

(2) 151 kWh and above $0.0925

(3) Demand Charge: $4.53/kW per month X
RGC. (RGC) Rated Generator Capacity=Rated
output capacity of customer-generator’s facility.

(4) Customer must complete and submit to the
Utility the Renewable Energy Parallel Genera-
tion Application for Service in Part 7. The utility
shall not approve a Customer-owned Generation
Facility Interconnection Application for Service.
Terms and conditions of service are contained
in the Renewable Parallel Generation – Resi-
dential Service rate schedule, Interconnection
Standards for Installation and Parallel Operation
of Customer-Owned Renewable Electric Gen-
eration Facilities 25kWAC or less for Residential
service and 200kWAC or less for Commercial
service. Customer must participate in the electric
Utility’s Renewable Parallel Generation – Resi-
dential Service rate schedule or Renewable
Parallel Generation – Commercial Service rate
schedule if the customer wishes to receive credit
for any excess energy generated by the cus-
tomer and delivered to the Utility.

(e) Area Lighting Service.

(1) Availability: Available in the general service
area served by the City of Sterling Municipal
Electric Utility.

(2) Application: Limited to those locations where
overhead service has been constructed, is al-
ways bucket truck accessible, and is deemed
economically feasible to serve by the City of
Sterling Municipal Electric Utility. Applications
for Area Lighting Service or for the disconnection
thereof, shall be made to the office of the city
clerk on forms furnished by the city, which forms
shall have the approval of the city manager. All
such applications shall contain such information
as may be required to indicate the services de-
sired by the applicant. The application and its
acceptance by the city shall constitute a contract
between the applicant and the city for the instal-
lation of the area lighting service requested.

(3) Type of service: The City of Sterling Municipal
Electric Utility shall furnish, install, maintain, and
deliver electric service to automatically con-
trolled, LED (light-emitting diode) lighting fix-
tures conforming to the utility’s service policies.
The City of Sterling offers two (2) choices of LED
fixtures. Class I (residential) 5,000 - 6,500 lumens.
Class II (light commercial) 8,000 - 9,500 lumens.

(4)   Original Installation: The cost of original
installation, which shall be borne by the cus-
tomer, shall be reviewed for cost and design by
city staff on a case by case basis. Upon receiving
an application for Area Lighting Service request,
city staff will prepare a cost for installation es-
timate, including but not limited to LED fixture(s),
photocell(s), mounting hardware, pole(s), wiring,
misc. hardware, equipment, labor, etc. Limit two
(2) lights per service location.

(5) Monthly rate (for lighting fixture only; does
not include cost of electricity):

Class I (5,000-6,500 lumens) = $11.90

Class II (8,000-9,500 lumens) = $17.85

The Area Lighting Service contract will be on a month-to-month basis. If contract is cancelled within two (2) years, a removal fee may be assessed. The City of Sterling Municipal Electric Utility will perform all requested maintenance during regular daytime working hours as soon as practical following notification by the customer.

(Ord. 2262; Ord. 2393; Ord. 2433; Code 2014; Ord. 2497; Ord. 2519; Ord. 2580)

SECTION 2. Chapter XV. Utilities, Article 3, Electricity, Section 15-209. Fuel and Energy Cost Adjustment (FECA) and Environmental Remediation Rider (ERR), is hereby repealed and replaced with the following:

Fuel and Energy Cost Adjustment (FECA) and Environmental Remediation Rider (ERR).

The calculated rates shall be rounded to the specified decimal places of accuracy and billed to all customers on the basis of their consumption. In no case shall the application of the FECA and ERR rates to consumption result in a customer billing that is below the minimum bill for said customer.

The cost of acquiring and producing energy for consumption shall be passed through directly on customers’ bills based on a rolling 12-month calculation (FECA) as follows:

Formula components defined:

PPC=Purchased Power total cost from city’s suppliers for the most recent 12 months of supply bills

GC=Generation costs for any city generation for the 12-month period for the same 12-month period

PPK=kWh total of purchased power for the same 12-month period

GK=kWh generated by the city for the same 12-month period

BK=kWh billed to customers of the utility 

LL=the current percentage of city utility system losses (to be determined annually on the basis of the following formula for a full calendar year of energy acquisition/billings). As of the date of this ordinance, the loss percentage is assumed to be 7% and should be reviewed annually for adjustment at the city’s discretion.

  (PPK + CGK + GK)/BK

B=The base value currently included in rates (if any). As of this ordinance, no energy costs are presumed to be included in the city’s rates. If and when the city changes rates and includes any fuel costs in the electric rates, this value will be set in such new ordinance.

Fuel & Energy Cost Adjustment (FECA) formula:

[(PPC+GC)/(PPK +GK)] x 1.133 x LL - B  = FECA

The FECA rate shall be rounded to the nearest 5 decimal places of accuracy.

ERR:

(a)   The City shall apply an Environmental Remediation Rider (ERR) for costs directly related to upgrades, repairs, filings, penalties and modifications incurred by the City because of State or Federal Regulatory Agencies imposing changes on power generation or delivery for environmental reasons. This will be passed on to consumers on a per kWh basis to all customers and all kWh’s consumed, including those netted by customer-owned generation.

(b)   The Environmental Remediation Rider is calculated as follows and billed as a separate line item on customer bills:

 

The ERR rate calculated above shall be applied to all sales in the following calendar year. The rate shall be rounded to the nearest $0.001 (3 decimal places of accuracy) and recalculated annually.

(Ord. 2262; Ord. 2393; Ord. 2433; Code 2014; Ord. 2497; Ord. 2578)

SECTION 3.  Section 15-210 of Article 2 of Chapter XV of the Code of Ordinances for the City of Sterling is hereby amended to read as follows:

“15-210. MONTHLY ELECTRICAL SERVICE

        CHARGE.  

In addition to the rates, as set forth in this article,
there is hereby established a monthly electrical
service charge, which shall be an additional
charge to all customers of electrical energy from
the municipal electrical plant on the following
basis: 

$13.60 per month service charge, residential

$28.33 per month service charge, commercial 

$13.60 per month service charge, renewable
generation (residential) 

$28.33 per month service charge, renewable
generation (commercial)”

SECTION 4.  This Ordinance shall be effective upon its adoption and publication in the official city newspaper and shall apply to all electrical charges as of April 1st, 2026 Bill.

PASSED, APPROVED AND ADOPTED by the governing body of the City of Sterling, Kansas, this 20th day of January, 2026.

Brian A. Inwood
Mayor

ATTEST:

Jessi Dobson

City Clerk

(Published in the Sterling Kansas Bulletin, Sterling, Rice County, Kansas, on January 29, 2026).       70.50

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