The Board of Public Utilities has approved the Fiscal Year 2026 Operating Budget for City Utilities of Springfield, Mo.
It now moves to Springfield City Council for a first reading on September 8, with a second reading and potential adoption on September 22.
The proposed budget authorizes $858.9 million in disbursements, including $55 million in contingency funds to help manage potential volatility in business operations and fuel pricing.
The FY 2026 budget supports City Utilities’ ongoing commitment to replacing aging infrastructure, ensuring the safety and reliability of essential services while maintaining affordability for customers. Budgeted expenditures include fuel costs, capital improvements, and operational expenses across all utility systems.
In addition to the budget approval, City Utilities will also request City Council approval for an electric rate adjustment to be phased in over two years to help fund the utility’s investment in new power supply resources, an Aug. 22 news release noted.
These resources include three natural gas combustion turbines and two battery storage projects, adding 186 megawatts of additional capacity to meet future energy demand and comply with significant regulatory requirement changes.
These investments will enhance local generation capabilities, improve system reliability, and help protect customers from cost fluctuations. They also position the utility for continued growth and development in the Springfield community, the news release said.
To fund these infrastructure expenditures, City Utilities completed a $283.5 million board-approved lease financing in March 2025.
The proposed electric rate adjustments are needed to pay for that debt. If approved, the proposed electric rate adjustments would take effect in two phases -- beginning with a 3.0% average increase on April 1, 2027, followed by an additional 3.6% average increase in April 2028. For a typical residential customer, this would result in an estimated monthly increase of $3.92 starting in April 2027, with an additional $4.83 per month beginning in April 2028.
Despite these proposed adjustments, City Utilities’ electric rates continue to compare favorably with utilities across Missouri and the United States. The utility anticipates maintaining its competitive position and affordability even with these future rate adjustments.
