Posted: Feb. 2, 2010 |(0) Comments

Menomonee Falls — Although village officials are requesting a water rate increase, a sewer rate decrease would result likely in reduced net bills for utility customers later this year.

Savings for an average single-family home would range from $21 to $51 a year, depending if the Public Service Commission allows Milwaukee Water Works to increase rates for its wholesale customers, including Menomonee Falls, by 36 percent.

The village last increased its water rates by 3 percent in 2004; its sewer rates by 6.8 percent in 2008. Without factoring in the 36 percent increase from Milwaukee, the village is looking at a 6 percent water rate increase and a 10 percent sewer rate decrease for a total sewer and water bill decrease of 5.6 percent, or $51 a year.

Reduced debt drops sewer rate

The village is able to decrease the sewer rate because the utility paid down debt last year, labor costs are down and Milwaukee Metropolitan Sewerage District rates have remained stable, Utility Director Jeff Nettesheim said.

In addition to revenue decreases and increased costs, the village's water utility absorbed a 3.8 percent increase from Milwaukee in September, Nettesheim said. The village is applying for a rate increase to the PSC to make up the fall increase and is asking for a clause that would allow an additional rate increase if Milwaukee receives permission to increases its rates again.

If the PSC approves the 36 percent increase, the village likely would increase its water bill an additional 10 percent, resulting in a 2.2 percent net decrease, or $21 a year, for the total sewer and water bill.

Opposition to city's plan

The village is part of a wholesale customer group fighting Milwaukee's request.

"They (Milwaukee) should start addressing their problems … and run their utilities more efficiently," trustee Michael McDonald said at Monday night's Village Board meeting.

Milwaukee Water Works is owned by the city of Milwaukee and provides water to residents and businesses in the city and 15 neighboring communities. Milwaukee supplies water to 90 percent of the village, east of the continental divide. The remaining 10 percent of the village is serviced through groundwater wells.

Nettesheim said the PSC likely will hold a hearing on Milwaukee's rate increase in mid-March. Village President Randy Newman noted that the hearing will be an opportunity for village officials to voice their opposition to Milwaukee's rate increase.

Once the village submits its rate increase application, Nettesheim said it could take 90 to 120 days to get a decision. Then the Village Board would have to approve both the water rate increase and sewer utility decrease before customers see a change on their bills.