MADISON - The Public Service Commission Wednesday approved the village of Albany's request to change all 450 of its aging conventional water meters for new automated ones, at an estimated cost of $101,000, according to a PSC order.
The PSC recommended the Sewer and Water Utility replace it decades-old meters in order to comply with federal lower lead standards. Many types of conventional meters are no longer manufactured and getting replacement parts has become difficult.
The utility included the project's cost in a water rate increase application pending before the PSC. The utility separately filed the meter change request.
Having automated meters will end the need to read each meter, a quarterly task that requires a visit to each meter site, a process that three employees accomplish over two days, said Village Clerk/Treasurer Lori Keepers.
Instead, each new meter can send usage data daily by a radio frequency to the utility office, saving labor cost and providing more timely information.
"It makes the whole process more efficient. For residents it makes checking for leaks easier. The system flags residents that have higher than normal usage and we can notify them," said Keepers.
That notification can allow customers to avoid unexpected high water bills due to leaks, according to the order.
The utility also will no longer have to send someone out to an address when a customer moves and the name changes on the account.
The new meters probably will not be installed until late fall or early winter, Keepers said. The village first wants the PSC to approve its rate request before it orders and receives the new meters, she said.
Each meter installation will probably involve accessing the existing meter, usually located in the basement, she said, requiring a service appointment at each residence. A call to Public Works Director Lonnie Gill to confirm this was not returned before deadline.
The utility plans to finish installing the automated meters next spring, Keepers said.
The water rate application would increase rates by about 32 percent if it is approved by the PSC.
The agency will hold a public hearing on the rate request at 11 a.m. May 5 at the village hall, 206 N. Water St.
PSC staff trimmed the rate request by cutting the rate of return on the utility's infrastructure investment from the requested 5.75 percent to 5.25 percent. Still, the PSC rate recommendation would add about $11.90 in quarterly volume charges to the current $37.06 cost on average residential water bills. The $27.84 meter charge most residents pay quarterly is also subject to adjustment by the PSC.
It is the utility's first full rate case since 1997 although rates have increased by 3 percent annually nine times between 2000 and 2012.
Keepers does not expect much customer opposition at the public hearing but anticipates some "grumbling" when the bills with the new rates are mailed.
Keepers said she believes the public feels the higher rates are justified by the recent and planned utility work including water main replacement downtown last year, similar work along Wisconsin 59 this year, repainting a water tower and the new meters.
"It's not like we're just piling up the money, we're putting it to work," she said.
As recommended by PSC staff, the new rates would increase annual revenue by $51,414 to $241,552 and boost the utility's net operating income from $17,015 to $68,429 and earn the utility the 5.25 percent rate of return.
The PSC recommended the Sewer and Water Utility replace it decades-old meters in order to comply with federal lower lead standards. Many types of conventional meters are no longer manufactured and getting replacement parts has become difficult.
The utility included the project's cost in a water rate increase application pending before the PSC. The utility separately filed the meter change request.
Having automated meters will end the need to read each meter, a quarterly task that requires a visit to each meter site, a process that three employees accomplish over two days, said Village Clerk/Treasurer Lori Keepers.
Instead, each new meter can send usage data daily by a radio frequency to the utility office, saving labor cost and providing more timely information.
"It makes the whole process more efficient. For residents it makes checking for leaks easier. The system flags residents that have higher than normal usage and we can notify them," said Keepers.
That notification can allow customers to avoid unexpected high water bills due to leaks, according to the order.
The utility also will no longer have to send someone out to an address when a customer moves and the name changes on the account.
The new meters probably will not be installed until late fall or early winter, Keepers said. The village first wants the PSC to approve its rate request before it orders and receives the new meters, she said.
Each meter installation will probably involve accessing the existing meter, usually located in the basement, she said, requiring a service appointment at each residence. A call to Public Works Director Lonnie Gill to confirm this was not returned before deadline.
The utility plans to finish installing the automated meters next spring, Keepers said.
The water rate application would increase rates by about 32 percent if it is approved by the PSC.
The agency will hold a public hearing on the rate request at 11 a.m. May 5 at the village hall, 206 N. Water St.
PSC staff trimmed the rate request by cutting the rate of return on the utility's infrastructure investment from the requested 5.75 percent to 5.25 percent. Still, the PSC rate recommendation would add about $11.90 in quarterly volume charges to the current $37.06 cost on average residential water bills. The $27.84 meter charge most residents pay quarterly is also subject to adjustment by the PSC.
It is the utility's first full rate case since 1997 although rates have increased by 3 percent annually nine times between 2000 and 2012.
Keepers does not expect much customer opposition at the public hearing but anticipates some "grumbling" when the bills with the new rates are mailed.
Keepers said she believes the public feels the higher rates are justified by the recent and planned utility work including water main replacement downtown last year, similar work along Wisconsin 59 this year, repainting a water tower and the new meters.
"It's not like we're just piling up the money, we're putting it to work," she said.
As recommended by PSC staff, the new rates would increase annual revenue by $51,414 to $241,552 and boost the utility's net operating income from $17,015 to $68,429 and earn the utility the 5.25 percent rate of return.