PSC approves water rate hike for Colby
By Kevin O’Brien
Starting with the next round of bills, city of Colby residents will pay slightly more for their water after the Wisconsin Public Service Commission approved a 4.1 percent increase in rates on Monday.
Under the decision issued by the PSC, the monthly service charge for a ⅝ th-inch water meter will be $13.31, and the cost per thousand gallons will be $6 for the 10,000 gallons. For an average household using 4,000 gallons per month, the water portion of the monthly utility bill will increase by $1.48, from $35.83 to $37.31.
Larger residential lots that use more water (6,200 gallons) will see their bill of $48.50 increase to $50.51, and the monthly bills for commercial buildings (19,300 gallons) will increase from $131.21 to $136.65.
As water utility customers use more water, the volume charge goes down slightly. For all water above 10,000 gallons but less than 34,000 gallons, the cost per thousand is $5.51. Anything over 34,000 will be charged at a rate of $4.36 per thousand. By contrast, the monthly meter charge increases as the water meter get larger, starting at $13.31 for 5/8th and 3/4th-inch meters and increasing to $25.41 for 1-inch meters and $68.98 for 2-inch meters.
The new rates will go into effect as of Oct. 15.
Colby has been applying for simplified rate case increases over the past three years, with their last increase going into effect last September.
The simplified rate case increases allow the city to keep water rates steady with inflation without having to go through the
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process of a full rate case, which would involve a total analysis of the water systems and finances by engineers and auditors that could result in a large spike in the water utility costs to residents. The last time the city went through the process of a full rate case was in September of 2009.
According to the PSC’s decision, the water utility’s overall rate of return will not exceed 6.5 percent, which is the limit set by the agency earlier this year.
“The applicant has fewer than 4,000 customers, and the total of all prior rate increases granted since the last hearing…does not result in rates that are more than 40 percent higher that the base rates previously authorized,” the decision states.
These rate increases will only affect water utility rates. Sewer rates will still remain the same.
Other business
■ ■ The city council received an update on an urban forestry grant that they are set to receive from the state that will give them approximately $47,000 for the purpose of planting trees within the city limits. These funds can be used by the city to plant trees in public areas or can also be used to provide citizens in the city with trees that they can plant on their property. More details on the city council meeting will be in next week’s issue of the Tribune Phonograph.
