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Saturday, November 23, 2024

City Council Authorizes Filing of Simplified Water Rate Case with the PSC

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Russ Steeber | City of Janesville website

Russ Steeber | City of Janesville website

On Monday, August 14, 2023, the Janesville City Council passed a resolution authorizing the City Manager to file a simplified water rate increase case with the Public Service Commission (PSC). The PSC sets rates for utilities in Wisconsin, ensuring charges are based on what it costs to produce the service.

The proposed water rate change would be the first since 2019, when the City began financing the Utility's water main replacement program upfront. This practice has dramatically improved the Utility's financial position and reduced borrowing costs. In the four years since this change, inflationary expenses related to water main replacement and operations require a rate increase to maintain the Utility's long-term fiscal health.

City staff has determined that a simplified water rate case adjusting the rate structure by increasing water rates by 8% is necessary to cover inflationary expenditure increases and provide additional resources for the Utility's capital improvement program. This modification does not mean a customer's bill will increase at that rate. The new proposed water rate equates to a 3.55% increase for water, public fire protection, and wastewater services, amounting to a $4.81 increase per quarter on the average residential utility bill.

Despite the proposed water rate change, Janesville remains below the average rate among peer cities for all three service categories, as noted in the chart above. For additional information, residents are encouraged to review agenda materials from the August 14 meeting on the City’s website.

For questions about the proposed simplified rate increase, contact the Water Utility at (608) 755-3115.

Original source can be found here.

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