Janesville79.7°

Delavan utility rates on the rise

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Kevin Murphy
December 23, 2010
— Residential customers of the Delavan Water and Sewer Commission will see their bills increase 12 percent next year after the Wisconsin Public Service Commission authorized the utility’s first major rate hike since 1993.

Average residential customers paying $47.38 per quarter for 1,500 cubic feet of water soon will pay $53.50 per quarter under rates that will take effect when meters are read Tuesday, Jan. 4.


Rates for commercial customer classes will increase by 16 to 18 percent, and industrial customer rates will rise 20 to 27 percent. In addition, the annual public fire protection charge will increase 13 percent.


The utility had received annual increases of 3 percent or less six times, but it sought its first full rate boost in 17 years when it began planning significant capital projects.


A 500,000-gallon water tower is being planned to help increase water pressure on the city’s east side, and a major looping project is planned to connect Mound Road and Highway 50 water mains.


The new rates will boost revenue by $216,414 next year, accounting for a total of $1.848 million, according to a PSC order posted Tuesday.


The Delavan utility initially sought a .5 percent rate of return, but the PSC decided 1.3 percent was needed.


The PSC notified utility staff before a Dec. 14 public hearing was held on the rate request.


Without the added revenue, the utility would have finished 2011 with a $50,792 net operating income loss.



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