The City of Kirkwood recently completed a comprehensive electric system modernization effort, which represents a substantial investment in the future of our community’s electric system. The entire electric infrastructure was upgraded, increasing system capacity and efficiency so that we can move more electricity with less waste. Key improvements include:

1. Upgrading the system to convert the City’s high voltage transmission infrastructure from 4,160 volts (4.16kV) to about 12,470 volts (12.47kV).
2. Upgrading its substations, including Essex, Leffingwell, Van Buren, Alfred, Aberdeen, and Sugar Creek.
3. Installing smart meters to generate real-time detailed outage maps, speeding power restoration.

These upgrades will ensure greater reliability, resilience and protection for our homes, businesses, community, and places of worship.

In completing these necessary upgrades, the Electric Department exceeded its capital budget. The cash reserve position of the Electric Department and the City allowed the City to pay for the additional, unanticipated costs, but prompted the City to carefully review the Electric Department’s finances. In doing so, it became apparent that a rate increase is necessary, not only to rebuild cash reserves, but also because energy costs continue to rise.

Following the completion of this comprehensive electric system modernization effort, and after a careful review of the financial status of the Electric Department, the Department’s Director and City staff determined a rate increase would be needed.

The City hired Utility Financial Solutions (UFS), an independent utilities consultant, to review and advise on staff’s proposed rate increase. Following its review, UFS advised that a 14.8% overall electric rate increase is necessary to allow the City to both rebuild cash reserves and account for continually increasing energy costs. Accordingly, the City is implementing an approximate 14.8% electric rate increase across all customer classes effective Nov. 1, 2025.

The modernization effort was funded through a combination of operating revenue from the Electric Department, budget appropriations, cash reserves and certifications of participation. 

The Kirkwood Electric Department, led by its director, managed this comprehensive electric system transformation, which spanned 12 years.

We continue to explore solutions and actions that will benefit our community and its citizens, including reviewing rate adjustment strategies periodically. The City Council and City staff are committed to keeping you informed of next steps as appropriate.

The Kirkwood Electric Department is managed by its director and staff. Mark Petty served as director of the Kirkwood Electric Department for more than two decades, and the City appreciates his commitment to our community. Following the completion of the Electric Department’s comprehensive modernization effort and the City’s effort to support improvement in the strategic direction of the department, Mark made the decision to retire. We are pleased to share that Rick McKinley, a veteran employee of the Kirkwood Electric Department, is serving as interim director of the Department.