Madison Water Utility seeks revenue increase, conservation rate structure

Madison, WI – October 21, 2014 – Madison Water Utility has submitted a rate application with the Public Service Commission seeking an overall 30% revenue increase as well as a new conservation-oriented residential rate structure. If approved, MWU will be the largest water utility in Wisconsin to offer a conservation rate for its residential customers in an effort to reduce peak summertime demand and reward those who use less water.
 
Although Madison Water Utility has been exploring a possible rate increase since the summer of 2013, this is the first time it has actually filed for an increase with the PSC in four years. If approved, any new rates would go into effect in the spring of 2015 at the earliest.
 
“The increase in revenue is necessary to replace aging water mains and other infrastructure, improve water quality, and make the Payment in Lieu of Taxes to the City,” said water utility general manager Tom Heikkinen.”
 
Madison Water Utility currently charges residential customers 28 cents per 100 gallons of water, with a monthly base charge for most customers of $4.50 and a public fire protection charge of $1.50. Any rate increase would only affect the water and public fire protection portion of a customer’s Madison Municipal Services Bill. Other charges on the bill, including sewer, storm water and landfill fees, are not affected by this rate application.
 
New rates based on cost-of-service will be established for the utility’s 5 customer classes: residential, multi-family, commercial, industrial, and public authority. But at this point, it has not been determined how a 30% revenue increase will be distributed among those various customer classes.
 
The Water Utility Board will hear a presentation on the rate case at its October 28th meeting.

A copy of the filing should be available on the PSC website within the next couple of days.