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Utility committee hears update: Milwaukee Water plans simplified 3% increase this fall; PSC may require full case by 2026
Summary
City staff told the Utility Committee Milwaukee Water plans a simplified rate case likely to raise purchase water prices about 3% in fall 2025, but the Public Service Commission’s direction tied to Waukesha Water could require a full case to be completed by the end of 2026. Staff will seek PSC clarification on purchase-water adjustment rules.
City of New Berlin utility staff updated the Utility Committee that Milwaukee Water plans a simplified rate case this fall likely to produce a roughly 3% increase in wholesale water charges to member municipalities, and that the Wisconsin Public Service Commission (PSC) has signaled a full rate case may be required because of Milwaukee’s connection with Waukesha Water.
A staff member said Milwaukee informed wholesalers at a recent meeting that the simplified proceeding would likely be implemented in September or October and produce about a 3% increase. Because Milwaukee is connected to Waukesha Water, the PSC is making Milwaukee perform a full rate case that staff said should be completed by the end of 2026. Staff explained the city’s typical mechanism — a purchase-water adjustment that passes through wholesale charges to retail customers — is now constrained by updated PSC language that ties such adjustments to conventional (full) rate cases.
Staff reported that John has reached out to the PSC to ask for clarification about what qualifies as a “conventional” rate case and whether the simplified fall proceeding will permit a purchase-water adjustment in the near term. Committee members did not record any formal objection to the likely 3% increase at the wholesalers meeting; staff said few protests were raised at that meeting.
Staff characterized the near-term outcome as an item to “watch” for September–October and said they would return to the committee when PSC guidance clarifies the city’s options for implementing a purchase-water adjustment or a different ratemaking response.
No formal committee action was taken on the rate-case update; staff were directed to pursue clarification with the PSC and report back.
