The City of Fort Atkinson has requested a water utility rate increase for its users from a state regulatory agency.
If approved, the increase will be used to pay for upgrading water mains in “various states of failure,” throughout the city, according to information released Tuesday by city engineer Andy Selle.
A public hearing about the city’s request, giving residents a chance to weigh in on the potential increase, will he held Wednesday, April 28, at 1 p.m. via conference call, according to the release.
The city has filed for an increase with the Public Service Commission (PSC) of Wisconsin, an independent regulatory agency responsible for the regulation of Wisconsin public utilities, including municipally-owned water utilities.
The City of Fort Atkinson has requested the PSC approve an increase in water rates to fund annual water main replacement at a rate of 1% per year, the release stated.
The PSC and the City of Fort Atkinson are seeking community input, and invite the public to participate in the upcoming public hearing relating to the city’s request for a rate increase.
To participate in the public hearing, dial (872) 240-3212, and use the access code 903-694-349#.
“Please plan to attend and support the city’s efforts to sustainably finance improvements to our water infrastructure,” Selle wrote in the release.
Some history
According to the release, the Fort Atkinson Water Utility was formed in 1901 and is comprised of 74.1 miles of water mains.
This network of underground pipes moves water to meet daily demands of residents, industry, and institutions and is a crucial component of fire suppression.
The city’s water mains are rapidly approaching the end of their useful life and need a dedicated, annual replacement program. Although some of the city’s water mains were installed as early as 1908, the oldest mains have an estimated useful life of 150 years and are performing well. However, water mains installed between 1944 and 1972 utilized an inferior production method and are now in various states of failure throughout the city, although barely beyond 60 years old. This vintage of water mains comprises 26% of the city’s distribution system, the release stated.
The PSC has traditionally required utilities to borrow for main replacement. This practice, when applied to a dedicated, annual, main replacement program, quickly results in substantial debt, large interest payments, and regular rate increases, the release continued.
The City of Fort Atkinson has requested the PSC approve an increase in water rates to fund annual water main replacement at the rate of 1% per year, without incurring the additional interest associated with borrowing. This would result in the replacement of about 3,900 feet of main per year, with an associated increase of about $14 per month for the average residential user and about 15% for the average industrial user. The city has not pursued a rate increase since 2013.
A durable network of water mains is a core component of a community that supports growth and the health and wellness of its residents and businesses. If approved by the PSC, the city of Fort Atkinson would be only the third utility in Wisconsin to fund main replacement in this manner. Maintaining a low cost and high quality of service for our rate payers is our most important priority, the release concluded.
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