VALLEY CITY, N.D. (NewsDakota.com) – In 1985, Valley City had the second-lowest electric rates in the United States—a remarkable achievement that has long been a key competitive advantage in attracting businesses and residents.

However, with proposed rate increases to fund a $15 million Public Works Shop, many are asking: Is Valley City’s future being jeopardized?

How Did We Achieve the 2nd Lowest Electric Rates in the USA?

Valley City’s low utility rates weren’t a product of luck. They were the result of strategic, forward-thinking decisions made by visionary leaders over the past century.

The journey began around 1902, when Valley City installed its first gasoline-powered generator, producing just 200 watts—enough to light a few lamps on Main Street and Central Avenue. As demand grew, a larger generator was installed in 1905, expanding the city’s access to electricity.

The real transformation came in 1913, when Oscar Bergman took the helm as Superintendent of Valley City Municipal Utilities. Under his leadership, agreements were secured to deliver affordable electric power, agreements that still benefit Valley City residents and businesses today.

His son, Oscar Jr. (Bud), continued this legacy in 1960, followed by other dedicated leaders, including Walt Watney, Bob Barrows, Leif Ravnaas, and Leroy Neubauer. Today, the Valley City Electrical Division is led by Marshall Senf, who continues the mission of providing low-cost, reliable power.

The Role of WAPA in Valley City’s Success

Since 1977, the Western Area Power Administration (WAPA) has played a critical role in maintaining Valley City’s low energy costs. By supplying affordable, renewable electricity, WAPA has helped keep rates low while supporting infrastructure and economic growth. As the energy industry evolves, continued WAPA investments will be essential in maintaining stability and sustainability for Valley City and beyond.

The Impact of a 4.5% Electrical Rate Hike

To help fund the proposed $15 million Public Works Shop, electrical rates in Valley City will increase by 4.5%. While this may seem small on paper, the economic impact on residents and businesses could be significant.

For Residents:

1. Higher Utility Bills – The average household paying $120 per month will see an increase of $5.40 per month ($64.80 per year). For families already struggling with inflation, this adds financial pressure.

2. Increased Rent & Housing Costs – Landlords often pass rising utility costs onto renters, leading to potential rent increases.

3. Higher Prices for Goods & Services – Small businesses facing higher electricity costs will pass expenses on to customers.

4. Strain on Low-Income Families – Families already choosing between food, medical bills, and utilities may be forced to reduce energy use, leading to unsafe living conditions during extreme weather.

For Local Businesses & Industry:

1. Higher Operating Costs – A small manufacturer using $10,000/month in electricity will pay $450 more per month($5,400 annually), cutting into profits.

2. Reduced Business Competitiveness – Higher operational costs make Valley City less attractive for businesses, potentially slowing economic growth.

3. Job Losses or Wage Freezes – Businesses may respond to increased costs by reducing hiring, freezing wages, or cutting jobs.

4. Risk of Industry Relocation – Energy-intensive industries, such as manufacturing and agriculture, may move to areas with lower utility costs, leading to job losses and declining economic activity.

The Big Question: Is This the Right Path for Valley City?

Low-cost electricity has long been one of Valley City’s greatest strengths—a key reason businesses and families choose to be here. With these rate increases, are we putting that advantage at risk?

It’s a question that deserves careful consideration before moving forward.

 Research and article by Todd Ingstad