Public utility rates are regulated by the state.
With that being said, the City of Stanley has elaborated on a proposed doubling to its current water rates, following application to the Public …
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Public utility rates are regulated by the state.
With that being said, the City of Stanley has elaborated on a proposed doubling to its current water rates, following application to the Public Service Commission (PSC) and public questions on the prospective two step rate increase for water projects at its central water plant.
“It is based on a 2025 test year revised revenue requirement,” City Administrator-Clerk/Treasurer Nicole Pilgrim shared of the proposed rate increase. “Step 1 increase of approximately 44% after the issuance of this case. Step 2 increase of 59% which adds up to the total overall increase of 103%.”
A 103 percent estimated cumulative increase in current water rates means rates just over twice the current rates, subject to a public hearing and Public Service Commission approval of said increases.
Current residential water rates for Stanley as sized for a 3/4 inch connection are $24 per quarter for fixed, $57.73 per quarter for public fire, and $6.69 for volume per 1,000 gallons. City water rates are based on Wisconsin Public Service Commission (PSC) rates and meter size.
Doing the math then, a two year, two step rate increase would raise 2025 rates to $34.56 per quarter for fixed, $83.13 per quarter for public fire, and $9.63 for volume per 1,000 gallons, rising to $48.72 per quarter for fixed, $117.20 per quarter for public fire, and $13.58 for volume per 1,000 gallons by 2026.
The estimated rate increases through 2026 effectively still needs final approval by the PSC. Among reasons given by the city meanwhile for the proposed rate increase are the following:
• Operating Expenses
• Ozone and SCADA upgrade
• Central Water Treatment Plant update
• Well 3 Update
• City had not completed any rate cases (Simplified or Conventional) since 2017
Put into alternate long form this includes covering debt service, a water study, increased cost of chemicals, updating of the water plant, and the increased need for finding more water due to being at maximum capacity.
The rates as proposed await a future public hearing for final approval.
