Number
090142
Version
SUBSTITUTE 1
Reference
Sponsor
The Chair
Title
Substitute resolution relative to a rate increase for Milwaukee Water Works.
Analysis
This resolution grants authority to the proper City officials to apply to the Public Service Commission of Wisconsin for a cost of living increase in water rates to be effective as soon as approved by the Public Service Commission and to present to the Common Council a second step rate increase to be submitted to the Public Service Commission to be implemented no earlier than December 15, 2009.
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 of Milwaukee and 15 neighboring communities; and
Whereas, The Milwaukee Water Works is a valuable resource that provides a sound economic platform for the metropolitan Milwaukee area and produces a revenue stream that reduces the municipal tax levy; and
Whereas, The Milwaukee Water Works’ last rate adjustment was in July 2007 and at that time a rate of return was requested that was lower than the Public Service Commission of Wisconsin’s benchmark for municipally owned utilities in order to mitigate the impact of the rate increase on customers; and
Whereas, The Water Works expenses have exceeded revenues in 2007 and 2008 and cash from retained earnings was used to make up the difference, and without rate increases the same trends are anticipated for 2009 and 2010; and
Whereas, Adequate revenue and cash balances are essential for the Milwaukee Water Works to produce high quality drinking water and properly operate, maintain and repair its extensive infrastructure; 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 3.8% using the simplified rate case process and to implement this increase as soon as approved by the Public Service Commission; and, be it
Further Resolved, That the Superintendent of the Milwaukee Water Works submit to the Common Council a strategy for a second step rate increase to be submitted to the Public Service Commission of Wisconsin via a full rate review and audit for implementation no earlier than December 15, 2009.
Requestor
Department of Public Works
Milwaukee Water Works
Drafter
Administration
Carrie M. Lewis
June 1, 2009