Public Service Commission of Wisconsin (PSCW) Provides Decisions on Madison Water Utility's Rate Case

~ The Public Service Commission of Wisconsin (PSCW) has recently made a ruling on Madison Water Utility's (MWU) 2025 application to increase water rates (3280-WR-117). As per the custom, MWU files a new rate case every two years to ensure that the rates are in line with the costs of operation, necessary capital investments, and maintenance of the drinking water system.

In light of this, MWU would like to inform its ratepayers, the public, and all other interested parties that PSCW has approved their rate case. The updated water rates will go into effect on May 1, 2026. This decision was necessary due to a 6.19% increase in gross plant investment and a 16.71% increase in operating expenses since the last water rate case was completed in 2022 and implemented in 2023.

The total increase in water revenues is estimated to be $5,535,369, resulting in an overall rate increase of 9.9% over the current revenues of the water utility. This translates to an annualized rate increase of 3.3% over the past three years since the last rate hike.

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According to PSCW's ruling, an average residential customer with a ⅝-inch meter who uses 4,000 gallons of water or less per month can expect their water charge to increase from $33.90 to $38.81, which is an additional $4.91 per month. This amounts to an approximate monthly increase of $1.64 or a 4.8% annualized increase over the past three years.

It is important to note that this rate hike only applies to customers' Municipal Services bills and does not include charges for Sewer, Storm Water, Resource Recovery, and Urban Forestry.

Overall, this ruling by PSCW is seen as positive as it allows the Utility to obtain $10 million per year in dedicated cash funding for water main replacements. This will reduce the need for additional borrowing to maintain infrastructure. Additionally, it will also enable the Utility to continue its path of debt reduction, with a significant decrease in outstanding debt from $283 million in 2018 to $147 million in 2026.

This decision by PSCW is a step towards ensuring that MWU can provide reliable and safe drinking water to its customers while also maintaining its financial stability. The new rates will go into effect on May 1, 2026, and MWU is committed to keeping its customers informed about any changes or developments in the future.

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