The South Haven City Council has approved an electric rate hike while making some changes to the way electric rates are set for the municipal utility.

At a meeting on Monday, the council heard from Dawn Lund of Utility Financial Services, LLC, a firm hired by the city to conduct a “cost of service” study for the electric service. She said while looking at market conditions and the price of electricity, it’s time for the first rate increase in South Haven in about nine years.

“ We’re recommending a 4.9% rate adjustment to take place on your October 1 billings,” Lund said. “This is what mainly is driving the rate increase is your power cost provider and PPA projected that energy and capacity costs are going to actually increase for 2026 at about 14.5%.”

The council also approved an ordin

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