Pending state approval, Madison residents should expect to see a 20 to 22 percent hike in their water bills next year. The city approved the proposal in November as a part of the 2014 budget.
The proposal, which will raise the water rate from $2.81 to $3.40 per 1,000 gallons, is expected to help cover the costs of replacing water mains, upgrading wells and improving general water quality, according to Madison Water Utility general manager Tom Heikkinen.
“We have to replace 400 miles of main over the next 40 years,” Heikkinen said of the long-term water utility infrastructure reconstruction. “We have a very old system in parts of the city.”
At this point, the exact proportioned numbers and percentage formula regarding how the bill increases will be attributed are not yet known.The four designated water classes that receive separate calculations include industrial, commercial, governmental and residential consumers.
The MWU estimates that the average residential household’s water bill will rise from about $336 to $410 annually.
Ald. Mike Verveer, District 4, said the increase is necessary because the MWU has struggled bolstering up its funds in years previous.
“In the past we simply just didn’t do a good job of asking the state for rate increases,” Verveer said.
He added rainy seasons have driven down water consumption, lessening the amount of money MWU collects. However, he said MWU continues to provide a good product with increasing reliability.
The proposed increase will raise the Madison minimum water cost to about $16.20 per yearly quarter, or every three months.
According to a report issued by the Public Service Commission of Wisconsin, the Madison minimum water quarter bill for residential consumers’ utilities as of February 2013 was $13.50.
The new Madison water bill brings the minimum cost higher than the rates of surrounding cities including Milwaukee’s rate of $14.70, Green Bay’s rate of $15.00 and Kenosha’s of $14.46.
Verveer said the PSC has authority to either decrease the rate proposal or deny it outright. It could be mid-2014 before the PSC makes a decision.
