VILLAGE RESIDENTIAL UTILITY BILLS TO INCREASE BY JUST OVER 1% IN RESPONSE TO KENOSHA UTILITY'S 3% INCREASE
PLEASANT PRAIRIE IS A CUSTOMER OF THE KENOSHA WATER UTILITY
Pleasant Prairie’s Water Utility purchases water from the Kenosha Water Utility, and Pleasant Prairie’s Sewer Utility transports Village waste water to the Kenosha Utility for treatment and its eventual return to Lake Michigan. Decades ago, Pleasant Prairie became a customer of Kenosha’s Water Utility after finding that large municipal wells in Pleasant Prairie were contaminated with the naturally occurring, cancer-causing element, Radium. The Village had explored several alternatives, and taking water through Kenosha’s Water Utility had proven the most practical.
In exchange for an unlimited supply of safe drinking water drawn from Lake Michigan, the Village agreed to become a lifetime customer of the Kenosha Water Utility.
As part of complex agreements that allowed this to occur, the Village also had to agree that once the debt from Pleasant Prairie’s own waste water treatment plants had been retired, Pleasant Prairie would decommission its two treatment plants and divert all waste water to the Kenosha Utility for treatment and its eventual return to Lake Michigan. This occurred in December 2010.
WATER AND SEWER RATE INCREASE
During April, the Village received notice that the Kenosha Water Utility had applied to the Public Service Commission (PSC) for the authority to increase water rates by 3%. In the same notice, the Village was informed that sewer rates would also increase by 3% (an increase that does not require approval by the PSC). Both increases will take effect on June 1. The PSC is a regulatory agency that oversees or regulates public utilities throughout the state of Wisconsin.
IMPACT FOR PLEASANT PRAIRIE'S WATER AND SEWER UTILITY CUSTOMERS
The water and sewer rate increase for individual Pleasant Prairie utility customers is expected to be just over 1%. The average water charge for Pleasant Prairie residential customers at the current rate is $39.98. At the new rate, the average water charge will be $40.40, a difference of $0.42. The average sewer charge for Pleasant Prairie residential customers at the current rate is $47.31. At the new rate, the average sewer charge will be $47.84, a difference of $0.53. All of the funds generated by the rate increase will be received by the Kenosha Utility.
CHANGE SINCE LAST INCREASE
In 2012, the Kenosha Water Utility sought to increase Pleasant Prairie’s water rate by first 16% and then 34%. The PSC, in 2013, allowed the Kenosha Water Utility to raise Pleasant Prairie’s rate by 10%, and residents saw their utility bills rise by approximately 3% in response. Since that increase, a change affecting water use in the Village has occurred that could potentially have a favorable impact on both the Pleasant Prairie and Kenosha Water and Sewer Utilities. The change was the addition of a large capacity water user in the Village (Niagara) who is expected to use up to one million gallons of water per day.
The Village will be contacting the PSC to ask them to consider (calculate) whether the Kenosha Water Utility will receive a significant financial benefit from the increased water volume provided by Niagara, and if so, what implications this may have on future rate increases. Because of the smaller percentage increase in the Kenosha Water Utility’s 2015 (most recent) request, the Village is unable to request a formal intervention on behalf of rate payers before the PSC.
UTILITY BILL REMINDER
Village staff continues to test new utility billing software that will incorporate more up to date technology intended to make the billing process more efficient. The new software will lead to changes in the way Village residents receive their utility bills. This fall, residents will begin receiving their utility bills in a marked envelope as opposed to printed on a post card. Online utility bill payments will be affected as well. As details are confirmed, staff will be sharing updates.