Madison Water Utility files for possible rate increase

Monday, July 1, 2019 - 10:52am

Madison Water Utility has filed an application with the Public Service Commission to increase water rates. MWU is forecasting an eight percent overall increase, but it will fall to the PSC to determine the actual increase, if any. The commission takes an average of 200 days to process a water rate application. If approved, the increase could mean an additional $2.20 per month in water charges for a typical residential customer and would likely go into effect sometime next year.

Madison Water Utility charges represent about a third of all the charges and fees on the Madison Municipal Services bill, which also includes sewer, urban forestry, landfill and storm water. The utility’s application will only affect the water portion of the bill.

All Madison Water Utility operations and infrastructure investment are funded solely through water rates. The utility’s major projected annual expenses are:

  • Capital infrastructure financing: $16.8 million
  • Labor & benefits: $10.7 million
  • Annual cash transfer to the City’s general fund (Payment in Lieu of Taxes): $7.8 million
  • Energy costs for water pumping: $2 million

The current average monthly residential water charge is $27.73 based on 4,267 gallons.

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Water Utility