Number
241934
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the Milwaukee Water Works to file a simplified rate case with the Public Service Commission.
Analysis
This resolution authorizes and directs the proper City officials to apply to the Public Service Commission of Wisconsin for a water rate increase of 3% using the simplified rate case process. The increase will not be implemented before July 31, 2025 for an effective 2025 annual increase of 1.25%.
Body
Whereas, The Milwaukee Water Works is a self-financing business enterprise of the City of Milwaukee that provides clean, safe drinking water to the City of Milwaukee and sixteen neighboring communities; and
Whereas, The Milwaukee Water Works must maintain adequate revenue to produce high quality drinking water and properly operate, maintain and repair its extensive water plants and distribution system infrastructure; and
Whereas, The Milwaukee Water Works is eligible to apply for a rate adjustment using the Simplified Rate Case process because one full calendar year has elapsed since the last rate adjustment in April 2023 and the utility’s 2024 estimated rate of return of 1.2% is below the Public Service Commission of Wisconsin’s benchmark rate of return of 6.2%; and
Whereas, The Simplified Rate Case process helps utilities maintain rate continuity so that customers benefit from reducing the impact of sporadic, larger rate increases; and
Whereas, the rate increase factor prescribed by the Public Service Commission for the Simplified Rate Case process for 2025 is 3%, which is an annualized increase of 1.25% for 2025 when implemented after July 31, 2025; and
Whereas, 3% would increase annual revenue by approximately $3.2 million and the increase to the average residential customer using 15 Ccf of water per quarter would be $2.00 per quarter or $8.00 per year; however, the increase would be in place for less than six months in 2025 so revenue would incr...
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