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PSC sets hearing on rate hike PDF Print E-mail
Community
Written by MARK JAEGER   
Wednesday, 17 February 2016 19:20

If approved as village requests, average water bill would increase 22%

The state’s Public Service Commission will accept comments on the Village of Saukville’s proposed water rate hike during a public hearing set for 11 a.m. Thursday, Feb. 25.

Comments will be accepted live in Madison or via a webcast connection at Village Hall, 639 E. Green Bay Ave.

The village has applied for an average rate hike of 22% based on a recommendation from its auditing firm, Schenck.

Two factors were cited as the cause for the requested rate hike — expenses associated with the construction of a new municipal water well and a drop in water use, especially by industrial customers.

According to the Schenck analysis, water utility revenues were expected to be about $200,000 lower last year than in 2012.

During that same time, total operating expenses rose from $869,000 to more than $1 million.

The PSC has recommended a 5.25% increase in the utility’s rate of return, which would boost projected revenues by more than $271,000.

If the rate hike is approved as recommended, quarterly water bills for the average residential user including fire protection would increase by 11% — from $82.45 to $91.50.

The PSC analysis noted that the hike would pose a greater burden on high-volume water users.

A large apartment building, for instance, would see its quarter water bill increase 23%,  from $646 to $795.

A large industrial customer, using 60 million gallons of water a quarter, would see its water bill increase by 43% — from $88,600 to $127,100. 

The utility provided 439 million gallons of water last year, an average of 1.2 million gallons a day. Keeping the fire hydrant system charged with water requires another 540,000 gallons, raising the average daily water demand to 1.7 million gallons.

The village last had a rate case brought before the PSC in 2010.

The state will be held in the Amnicon Falls Hearing Room of the PSC office, 610 N. Whitney Way, Madison.

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