Public Service Commission Approves 56% Water Rate Increase

Expect a big increase in the size of your next water bill.

The Wisconsin Public Service Commission has approved the South Milwaukee Water Utility’s requested rate increase, meaning the average property owner’s bill will go up 56 percent effective Oct. 1.

November bills will reflect the increase for one month.

Click here to see the full PSC decision. From it:

The Commission appreciates and is sensitive to the customers’ concerns in this matter. However, the Commission finds that the revenue resulting from the authorized rates is necessary to provide for the financial needs of the utility over the long-term. …

These rates are reasonable and just. All customers will be required to pay an appropriate amount for the service provided.

Just how much will you pay? Obviously, it depends on usage, but average residential customers will pay $97.75 every four months with the increase, up from $62.82 currently (or the aforementioned 56 percent).

Increases for larger commercial, industrial and public users will run in the mid-60 percent range.

Check out a complete rate chart in Appendix D of the PSC decision.

While the increase is unfortunate — I have said before that I wish the pain of such a large increase could have been spread over a series of years vs. levied all at once — I was happy to see that residents made their voices known in the debate. According the PSC, 17 individuals submitted written comments to the commission, and 39 water customers appeared at the public hearing earlier this month.

“Most expressed concern with the level of rate increase in this bad economic environment,” according to the decision.

I share that same concern … while at the same time accepting the increase as necessary given the recent $9.4 million in plant upgrades, declining industrial and residential usage and other factors. I don’t love it. But I will live with it.

What do you think? Post your comments below … and cast your vote in my new poll on the right-hand side of this page.

11 Comments

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11 responses to “Public Service Commission Approves 56% Water Rate Increase

  1. dave's avatar dave

    when they say the average will bil is 67.oo is that without sewer fees, our water bill has never been that low even with just 2 people in our house.

  2. dave's avatar dave

    my mistake appox 63.00 dollars

  3. Rich's avatar Rich

    It is unfortunate that the City received the full increase they asked for. It should be remembered at election time that it is the Alderman and Mayor who confirm appointments to the Water and Wastewater Commission which those Commissions approve the request to obtain the increases.
    There is a provision written in the PSCW determination that allows for a lawsuit. Anyone interested in pursuing this, please post your interest here.

    • Melanie Poser's avatar Melanie Poser

      Rich, I am wondering if it was the mayor and the aldermen who initially approved the building of the new water treatment plant before they had the funds for it. Maybe Eric could let us know.

      • Melanie Poser's avatar Melanie Poser

        pardon me, it was a 9.4 million improvement to the water treatment plant.

      • I’m not sure of the formal approval process (who approved what when), as I was not on the Council at that time. But I do know the upgrades were approved knowing that they would be paid for with a rate increase at some point. As I said, I just wish the pain of the increase could have been spread out over time … rather than dealing with a 56% jump all at once.

  4. Rich's avatar Rich

    Some of the improvements were required by the DNR. However, read the PSCW decision and check out the rate of return and revenue they are projected to receive. The Aldermen confirm the appointment to the Water Commission made by the Mayor

  5. TC's avatar TC

    I would LOVE a bill that size! Our last two bills have been $240 and $260 for a family of 5 – with a 56% increase? yeah.. can’t wait.

    It will be cheaper for me to drive to my in-laws or even my parents house and use their washer.

    • Melanie Poser's avatar Melanie Poser

      TC, mine was $289.00 for 3 adults and a baby, let’s remember this unfair increase when election time rolls around.

      • I understand the frustration. I’m frustrated too. But I do support the plant upgrades — a major contributor to the increase. They have given us a state-of-the-art water plant, and allowed us to remain an independent water system. I also can’t do anything about significant declines in usage with major customers like Bucyrus. What I can do is make my voice heard on the issue … stating how the utility should have done a better job of spreading the pain of the increase across a longer period of time. And I have.

  6. James's avatar James

    I’ve read the comments and agree with what the people are saying. I don’t understand how the state could approve such an increase when they keep talking about how bad the economy is. Are any of the high ranking politicians and office holders turning down their bonuses or raises this year, I don’t think so. Really, think about how many people are on fxed incomes also the people that have lost their jobs or have large families. Has any one reading this ever had that type of increase in salary. When the state said ok to that increase did they also make sure that the residents of South Milwaukee also got increases of lets say 25%in their income to help cover the bills that they already can’t pay. Get serious, if the economy is is such bad shape, which you hear everyday on TV and radio, how can the state and especially the City of South Milwaukee do this to their people. We really have to think about everyone that holds a position in this city the next time an election comes around.

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