MADISON — Average residential customers of the Blanchardville Municipal Water Utility will pay $25 more per month, according to an order issued Aug. 10 by the Public Service Commission.
The 86% rate hike increases the monthly water bill for average residential customers currently paying $25.35 for 3,000 gallons of water to $54.56 for the same volume when the new rates take effect.
The increase includes the Public Fire Protection charge for hydrant maintenance and other firefighting costs incurred by the utility.
The PSC authorized 3% inflationary rate increases in 2010, 2014 and 2018 but it is the utility’s first comprehensive rate increase since 2004, which is considered a long time for utilities.
Rates for commercial, multifamily and public authority customers also will increase between 72 and 117%, depending on customer class and usage.
Water bills may not reflect the overall increase the PSC authorized for each customer class but may vary on the specific customer’s water use, according to the PSC order.
The PSC receives only one written response from Blanchardville customers. Laurie Hughes opposed the timing of the increase with so many people currently unemployed. Also, those affected by street reconstruction projects are assessed for the partial cost of curb, gutter and sidewalks, plus the expense of replacing lead service lines from the curb to the house.
The PSC order acknowledged the financial difficulty the COVID-19 crisis has imposed on the public but concluded that the rate increase is necessary for the utility’s long term financial health.
Late last month, the PSC extended the order halting utilities from shutting off water, electricity and heat for non-payment of bills until Sept. 1, due to the financial strain caused by the COVID-19 pandemic.
The village requested new rates in December in order to finance the water mains being replaced in In Locust, Pine, Curve, E. Olson, Line and Cross streets. The water utility’s portion of the $3.399 million project has been estimated at $1.81 million which includes upgrades to two well houses plus controls and communication equipment.
Sewer mains also will be replaced in the six streets at an estimated cost of $1.58 million. The village board was planning to increase sewer rates by 3% this year to finance the cost of replacing the sewer mains, Village Clerk Amy Barnes previously said.
Barnes wasn’t available for immediate comment Aug. 12 on when the new rates would be implemented.
The village of Belleville has asked the PSC for permission to delay until Dec. 1 the 47% water rate it authorized in June. That request filed last month remains pending with the PSC.
The new rates will boost annual revenue by an estimated $146,091 to $332,942 and after total expenses of $221,572, earn the utility a net operating income of $111,370, which is a 4.9% rate of rate on the net value of it infrastructure investment, according to PSC order.
Without the new rates, the utility would have incurred a $34,721 income deficit, according to the order.