Madison Utilities considers rate hike

To discuss proposed rate increases, Madison Utilities will hold a public forum on Sept. 17 at 5:30 p.m. at 101 Ray Sanderson Drive. (CONTRIBUTED)

MADISON – Madison Utilities will conduct a public forum on Sept. 17 to discuss proposed rate increases.

The forum will be held at 5:30 p.m. at Madison Utilities’ offices, 101 Ray Sanderson Drive in Madison. The discussion will focus on the rate study that Raftelis Financial Consultants recently completed, Madison Utilities General Manager Emory DeBord said.

That study included an analysis of consumer consumption trends and the practice of charging a flat base rate per meter, regardless of the meter size or consumption.

Therefore, an average small household in Madison is paying the same base charge per meter as large businesses and major consumers. The proposed changes would require the largest consumers to pay based on their consumption, plus a tiered base fee depending on meter size.

“The study by Raftelis really gave us a clear path to sustainability for our system for both the present and future,” DeBord said.

Rate adjustments first were discussed in a public meeting of Madison Utilities Board of Directors on June 15. The adjustments would impact almost 90 percent of Madison Utilities customers minimally. Those in that range would see an approximate eight-percent increase on their utility bills in the first year.

The increases include these factors:

* Water base fee from $6 to $6.20.

* Sewer base fee from $5 to $6.

* Water commodity at 5,000 gallons from $14.10 to $15.10.

* Sewer commodity at 5,000 gallons from $20.70 to $22.15, for a total of $3.65 monthly estimated increase.

* Adjustments to irrigation accounts.

“We’re not looking at this from an emotional standpoint,” DeBord said. “As we’ve grown as a utility, and as we prepare for future growth, the independent consultants pointed out the inequity in our smallest consumers paying the same as our largest consumers with regard to base rates.”

In addition, Madison Utilities is launching a social media campaign. Their page at Facebook/Madison Utilities and account at Twitter/MadisonALWater will publish information about outages, construction and other announcements.

For more information, visit madisonutilities.org.