For most of its 125 years, Kirkwood Electric sent money to City Hall. The utility began operating in 1901. It buys wholesale power and resells it to nearly 10,000 customers at a small markup, and for many years those profits, about $2.4 million a year, went into the city's general and capital funds. In 2017 the utility was profitable enough to lend $3 million toward the Kirkwood Performing Arts Center.
That changed on November 1, 2025. Since then, money has flowed back toward the utility, and it comes from the people who pay the bills. If you're comparing Kirkwood with the suburbs around it, the electric and water bills now depend on decisions about City Hall's finances, and some of those decisions are still being made this fall.
How a Source of City Revenue Became a Cost to Customers
St. Louis Public Radio reported in July that the Electric Department ran up a $15.6 million deficit during a $33 million grid modernization program. A city after-action report found that spending pulled "five to seven years of planned capital investment into a span of two fiscal years." That spending drew on the reserves of the Electric Department, the General Fund, the Water Department and the Sanitation Department. The same report says Moody's lowered the utility's credit rating from Aa1 to Aa3 after the reserves were drawn down.
The city chose to recover the money through rates. A consultant, Utility Financial Solutions, recommended an overall increase of about 14.8% across customer classes, effective November 1, 2025, to rebuild reserves and keep up with rising energy costs. The city's financial review page says it expects to repay the other funds over five years while rebuilding about $4 million in Electric reserves.
The Webster-Kirkwood Times described the increase as about $15 more on every $100 of bill. The paper also reported that it was Kirkwood's first overall rate change since 2016, and Mayor Liz Gibbons told the Times:
"We have not been keeping up our rate changes like we should have."
According to the Times, the increase means Kirkwood Electric's rates are higher than those of neighboring Ameren customers for the first time in years. Two more charges sit on top of the base rates. STLPR reports that a 35% "fuel charge" added in October 2022, when natural gas prices spiked, was meant to be temporary but will now stay on bills indefinitely. The Times also describes a separate 3.5¢ per kWh surcharge, in place since 2023, that Mayor Gibbons said stays in effect after the increase. Kirkwood is the only municipality in St. Louis County that owns and operates its own electric utility. A small share of Kirkwood residents are Ameren customers instead.
That last detail matters before you compare houses. A Kirkwood address doesn't guarantee Kirkwood Electric service, so two homes in the same city can be on different rate schedules.
The Rate Card, Just as Winter Billing Begins
Kirkwood Electric bills its "winter" rate for eight billing periods, October through May. That puts the first full winter of the new rates right where this post lands. Here are the two published residential schedules side by side:
| Residential charge | Kirkwood Electric, E1 | Ameren Missouri, Residential Anytime |
|---|---|---|
| Monthly customer charge | $10.00 | $9.00 |
| Summer energy, June–September | 16.05¢ per kWh | 15.60¢ per kWh |
| Winter energy | 14.85¢ per kWh, flat | 10.62¢ for first 750 kWh, 7.14¢ after |
| Added adjustment | 3.5¢ per kWh purchase power adjustment "may be applied," effective Nov. 1, 2025 | Ameren's tariff also lists its own adjustments |
| Schedule date | Posted on the Kirkwood Electric rates page | Issued May 2, 2025, effective June 1, 2025 |
Sources: the Kirkwood Electric rate page and Ameren Missouri's posted residential tariff.
The bigger difference is in how the winter rate is built. Ameren's winter price drops after the first 750 kWh in a month. Kirkwood's winter energy charge stays the same at every level of use. So the gap between the two grows as a household uses more electricity in winter, and it grows most for homes that run electric heat or have a lot of square footage to keep warm from October to May.
The table doesn't produce one all-in comparison, because both utilities add adjustments that can change month to month. Kirkwood's Utility Billing office at 314-822-5843 is the source for how the current charges combine on an actual bill. Kirkwood Electric takes service questions at 314-822-5842. If you're looking at a specific house, the seller's last twelve months of bills, winter months included, will tell you more than any table.
Water Has More Riding on It
The electric increase is in effect. The water side is still undecided, and much more money is involved.
The First Alert 4 report from July said Kirkwood is the only city in St. Louis County still running its own water distribution system. A city consultant estimated the system needs about $90 million in upgrades. Water rates have risen more than 50% over four years, including a 5% increase that took effect in April. The city's water rate page lists these charges today:
- Base charge for a standard 5/8-inch meter: $17.19 per month
- Consumption: $6.4334 per 1,000 gallons
- Infrastructure renewal fee: $4.5906 per 1,000 gallons
- Service-line repair fund: $1 per month, plus applicable primacy fees
The infrastructure renewal fee is the second-largest line on that list. It means customers are already paying, gallon by gallon, toward pipe replacement.
City staff have proposed a "keep-and-fund" plan that keeps the system under city ownership. First Alert 4 reported that under that plan, a household using 4,000 gallons a month would see its bill rise from $64.63 to as much as $92.24 by 2037, roughly 43% higher, with at least $5.27 million a year set aside for water main replacement. Future increases still need council votes, and the station reported they weren't expected to take effect before 2029.
The station also reported on closed-session records showing that Missouri American Water offered about $27.5 million for the system, with a separate note of $55 million in investment for upgrades. According to STLPR, the city formed a committee to consider selling the water department, in part to pay down a recent debt load of $116 million in principal and interest.
What Is Settled and What Isn't, as of the October 15 Work Session
- Settled: The electric rate increase took effect November 1, 2025, and STLPR reports the 2022 fuel charge stays.
- Settled: First Alert 4 reported that a 5% water increase took effect in April.
- Pending: A "Water Department Appraisal" was on the council's October 15, 2026 work-session agenda. The agenda lists the item for discussion and doesn't record a sale recommendation, a vote or a ballot question.
- Pending: The forensic audit. A city memo dated October 13 says the selection committee unanimously chose Plante Moran on October 2 as the firm to negotiate with, and the council took up the request for proposals at the same October 15 session.
- Proposed only: Water rate projections from 2029 through 2037 under the keep-and-fund plan.
Council member Justin Arnold put the public stakes plainly in STLPR's report: "our residents are paying more because of what happened, so they deserve to know what happened."
The Utility Step at Closing
Because the city owns these utilities, moving accounts at closing goes through City Hall. Kirkwood Electric's FAQ asks customers to submit a start, stop or transfer request online with the service address, move dates and contact information. It also notes that some services may require a deposit or connection fee.
For sellers, timing is the part that matters. Kirkwood's electric code says the account holder remains liable for usage until written notice to discontinue service is delivered to the Finance Director. For renters and commercial applicants, it sets a deposit estimated to cover 90 days of use, with a $60 minimum. This is general information, not legal or financial advice, so confirm how these rules apply to your own sale with the city's Utility Billing office and your closing professionals.
FAQ
Is every home in Kirkwood served by Kirkwood Electric? No. The Webster-Kirkwood Times reports that a small share of Kirkwood residents are Ameren Missouri customers. The provider for a specific address shows on the seller's bills.
Where does Kirkwood's electricity come from? About 60% comes from the Prairie State coal-fired plant in Lively Grove, Illinois. The rest is bought through the MISO regional market.
Has Kirkwood decided to sell its water system? The October 15, 2026 work-session agenda listed a water department appraisal for discussion. It doesn't record a decision to sell.
If you're thinking about selling in Kirkwood this winter, Show + Sell STL can help you collect the utility history buyers will ask for and line up the account transfers so they're done before closing day. Get Your Free Home Valuation to start with the numbers for your own address.
