The Estes Park Town Board spent a chunk of its Tuesday meeting looking over the results of the town’s recent electricity rate study and will continue to hear public comment later in June.

NewGen Strategies and Solutions Senior Consultant Meghan Helper worked on the study and shared a presentation with the board to illustrate how the study played out, as well as its results. She explained that the process began with the development of a financial forecast, followed by cost allocation and finally, a rate design.

A “revenue requirement” was developed during the financial forecast portion of the project, outlining the total expenses of the electrical utility. She told the board that the subsequent rate designs are centered on collecting sufficient revenue while also supporting the utility’s goal and using resources in a cost-effective manner.

These studies are conducted every three years and at the conclusion of this year’s study, the department has proposed a three-year increase. The study findings revealed that the utility needs to generate 3.5% more revenue in 2026, 2027, and 2028.

If no action were taken and rates remained the same going forward, Helper said that reserve fund levels would be drawn down annually, and by 2027, the department’s budget would have less than 90 days-worth of reserve funds remaining. She touched on large inflationary pressures as a key reason why an increase is necessary.

“The key point here is that we do need rate increases to maintain financial stability,” Helper said. “If no rate increases are implemented, there’s potential for much, much larger increases in later years or a reduction in the budget. A reduction in the budget would result in lower safety and reliability standards at the utility.”

Helper said that the increase is on the low side, historically, and called the bump “reasonable.” She proposed 50-cent monthly customer charge rate increases for both standard residential and demand residential rates. That increase would bump the total cost of a monthly electric bill up around 2% starting in 2026.

Small commercial rates would see a similar increase, jumping around 3% starting in 2026.

“There are more rate classes that Estes Park serves,” Helper said. “They serve industrial, they serve a large and medium commercial, and they also serve Rocky Mountain National Park. The rate increases for those people are a little higher than the 3.5%, and that allows us to keep the residential and small commercial under that 3.5%.”These increases were largely based on cost-of-service results from the rate study, which determined that residential and small commercial customers did not need as large a hike as larger commercial and industrial rate classes.

Director of Utilities Reuben Bergsten said that Estes Park’s electric utility costs run “on the high side” compared to other municipalities across the state, largely because Estes Park and Rocky Mountain National Park make up a large service area with relatively few customers there. He noted the Stanley Hotel, the YMCA and the Water and Sewer Departments as the utility’s largest customers.

Town Administrator Travis Machalek mentioned the good work the department does with regard to remaining cost-efficient and closely monitoring the bottom line. He said the department recently purchased bucket trucks for around half the price of a brand-new truck.

Resident John Guffey addressed the board during the meeting’s public comment section, pointing out the importance of conservation. He asked the board how it might reduce the demand for energy in the Estes Park community. Resident Greg Peterson shared concerns over the increase, noting that he’s not satisfied with the current rates, let alone even higher ones. He told the board that his January electric bill this year was up 25% compared to 2024, though he has made no changes in his home that would cause such an increase.

“People are hurting to make ends meet,” Peterson said. “Not only here, but across the whole country because of inflation and many other things going on.”

The board voted unanimously to continue public hearing and board action on the topic on June 24, allowing for additional public comment.

In other business, The Slab, located at 116 E. Elkhorn Avenue and Indian Bites, located at 181 W. Riverside Drive, both received liquor license approval on Tuesday as well.

The board also spent a lot of time working on childcare and the funding mechanisms that keep that service running in Estes Park. After a presentation from Housing and Childcare Manager Carlie Bangs, the board voted unanimously to revise childcare funding guidelines, adjusting how that funding is parceled out and formalize the Childcare Stability Initiative and Childcare Assistance Program. These programs are centered around providing tuition assistance through 6E funds and providing support for the early childhood workforce and operational costs.

The board’s next regular meeting is scheduled for June 24.