City of Milwaukee - File #: 121524

• File #: 121524
• Version: 1
• Type: Resolution
• Status: Passed
• File created: 2/27/2013
• In control: COMMON COUNCIL
• Final action: 3/21/2013
• Title: Substitute resolution authorizing an application for a rate increase for Milwaukee Water Works.
• Sponsors: THE CHAIR
• Indexes: FEES, WATER WORKS

Date	Ver.	Action By	Action	Result	Tally
4/1/2013	1	MAYOR	SIGNED
3/21/2013	1	COMMON COUNCIL	ADOPTED	Pass	14:0
3/6/2013	1	CITY CLERK	DRAFT SUBMITTED
3/6/2013	0	PUBLIC WORKS COMMITTEE	SUBSTITUTED; Minutes note: Individual appearing: Carrie Lewis, Milwaukee Water Works Proposed Substitute B was accepted.	Pass	5:0
3/6/2013	1	PUBLIC WORKS COMMITTEE	RECOMMENDED FOR ADOPTION	Pass	5:0
3/1/2013	0	PUBLIC WORKS COMMITTEE	HEARING NOTICES SENT
2/27/2013	0	COMMON COUNCIL	ASSIGNED TO

Number

121524

Version

SUBSTITUTE 1

Reference

THE CHAIR

Sponsor      

Title

Substitute resolution authorizing an application for a rate increase for Milwaukee Water Works.

Analysis

This resolution authorizes the proper City officials to apply to the Public Service Commission of Wisconsin for a rate increase in water rates to be effective upon approval by the Commission.

Body

Whereas, The Milwaukee Water Works is a self-financing business enterprise of the City of Milwaukee that provides safe and abundant drinking water in the City and 16 neighboring communities; and

Whereas, The Milwaukee Water Works is a valuable resource that provides a sound economic platform for the metropolitan Milwaukee area and contributes an annual Payment in Lieu of Taxes that reduces the municipal tax levy; and

Whereas, Milwaukee Water Works water is an excellent value wherein the cost of water for a residential customer using 21 Ccf of water per quarter is $55.56, which is significantly lower than rates in neighboring municipalities as shown below:

CITY	Water plus Service Charge		Fire Protection		Total Quarterly Bill
Milwaukee	$49.98		$ 5.58		$ 55.56
Oak Creek	$64.31		$17.61		$ 81.92
Waukesha	$73.18		$16.41		$ 89.59
Whitefish Bay	$67.53		$27.24		$ 94.77
Port Washington	$91.22		$17.47		$110.69

; and

Whereas, Milwaukee Water Works' residential costs for 21 Ccf of water per quarter rank 77^th out of the 82 water utilities in the 7-county region of southeastern Wisconsin as shown on the exhibit attached to this file; and

Whereas, The cost of Milwaukee Water Works' water to business and industry is highly competitive, ranking in the lowest third of Wisconsin Class AB utilities and comparable cities in the Midwest as shown on the exhibits attached to this file; and

Whereas, The Milwaukee Water Works' last rate adjustment was requested in September 2009 and implemented in February 2011, and even after this increase, rates for all customer classes remain well below those of local and regional competitors; and

Whereas, The Milwaukee Water Works' water sales have declined by 17% in the last 10 years, largely due to losses in the industrial customer base and increased household water efficiency, which continue to constrain sales and revenue growth; and

Whereas, Milwaukee Water Works cannot invest sufficiently in plants and distribution at current rates, and the projected 2012 rate of return of 2% is well below the benchmark of 5.5% for municipally-owned water utilities in the state; and

Whereas, On March 1, 2013, the Public Service Commission of Wisconsin released the rate increase factor of 3% that should be used in the simplified rate case process for 2013; now, therefore, be it

Resolved, By the Common Council of the City of Milwaukee, that the Superintendent of the Milwaukee Water Works is authorized and directed to submit to the Public Service Commission of Wisconsin an application for a rate increase of 3% using the Commission's simplified rate case process, and to implement this increase upon approval by the Commission.

Requestor

DPW-Water Works

Drafter

Administration

Carrie M. Lewis

3/5/2013

LRB145449-2

Teodros W. Medhin/lp