Waukesha utility to seek PSC approval for water-rate increase; commission approves series of contracts and insurance renewals

Waukesha — The Waukesha Water Utility Commission voted June 19 to submit an application to the Wisconsin Public Service Commission (PSC) seeking a conventional increase in water rates under PSC docket 6240-WR-111 and approved several routine contracts and policy renewals.

The rate filing was described by utility staff as a follow-up to a two-step increase approved by the PSC in 2023 and 2024 tied to the Great Water Alliance project. Utility staff said they will request a short extension of the PSC filing deadline (from the current August 15 date) to October 1 to allow time to compile actual operating costs and updated abandonment cost estimates for facilities the city expects to decommission as part of the Great Water Alliance work.

Commissioners and staff said the utility is estimating roughly a 13% increase to the water portion of bills for the proposed filing, but noted that the water portion represents only part of customers’ total bills. Utility staff said the projected increase would translate to about a 6.6% increase on the combined water, return-flow and sewer bill. Courtney, utility staff, told the commission: “we are estimating a rate increase of about 13%.”

Why it matters: The PSC regulates water rates for utilities in Wisconsin. Staff said the new filing will rely on roughly 18 months of actual costs since the earlier rate case, updated amortization entries for costs tied to a now-abandoned Oak Creek option, and better estimates of abandonment costs for facilities tied to the Great Water Alliance. The PSC’s review of rate cases typically takes 12–18 months, staff said.

Public comment and commission discussion: Two members of the public asked questions at the meeting. Chris Wilson, who identified himself as a property owner on Pleasant View Avenue, said he sought clearer information after news coverage and asked, “I’m just here to understand because I mean, you only get nit bits from the news and I wanna understand exactly kinda what’s going on here because I was under the assumption that there were 2 tiers and those 2 tiers happened and I’m wondering why there’s now another 1 being inserted.” Kurt Bauer, a Waukesha resident and realtor, thanked staff for the presentation and said he will pass the information to clients.

Mayor Riley and other commissioners added context about the scale of recent investments. The mayor said the change in water supply and wastewater plant work together explain much of the cost pressure, noting, “we went from 1 supply to a new supply. It costs $286,000,000 has to be paid back … over 38 years.” The mayor also described state Department of Natural Resources requirements and investments made in the sanitary (clean water) plant.

Votes at a glance (action items taken June 19) - 5f — Motion to submit an application to request an increase to water rates per PSC order (docket 6240-WR-111). Moved: Commissioner Ybarra; Second: Commissioner Curry. Outcome: Approved (voice vote). Notes: Staff will request an extension to October 1 for filing materials and said the filing will use 18+ months of actual costs, updated amortizations and abandonment estimates. - 5a — Approve payments from the general fund and improvement fund (vouchers). Outcome: Approved (voice vote). Notes: Commissioners asked about specific invoices (e.g., legal billing and online transaction fees) during the discussion. - 5b — Approve water-utility portion of staking and inspection services for the city’s 2025 resurfacing/utility improvements (estimated utility cost $30,000). Moved: Commissioner Curry; Second: Mayor Riley. Outcome: Approved (voice vote). - 5c — Approve water-utility portion of staking/inspection services for Greenmead utility/street improvements (estimated utility cost $32,000). Moved: Commissioner Francor; Second: Commissioner Curry. Outcome: Approved (voice vote). - 5d — Approve fiber relocation to Sims ($88,462.75) and project engineering fees to MCE ($9,762.50) — total $98,225.25. Outcome: Approved (voice vote). Notes: The relocation was prompted by Wisconsin DOT road work on Highway 59 that will conflict with the fiber conduit carrying the utility’s SCADA communications between booster pump stations; staff said the move is intended to minimize downtime and reduce risk of longer outages. - 5e — Approve professional services contract with Fourth Infrastructure and Environment LLC (up to $50,000) to allow the retiring general manager to provide consulting support through a third-party arrangement related to ongoing litigation and project closeout. Outcome: Approved (voice vote). Notes: Staff explained the arrangement is to permit a retired employee to assist via a third-party firm in keeping continuity for depositions and project closeout. - 5g — Approve business insurance renewals for policy year beginning July 1 with LWMMI (liability/crime/cyber), MPIC (property/equipment breakdown) and Erie (workers’ compensation) at quoted premiums. Outcome: Approved (voice vote). Notes: The total premium increase is $10,857 (7.78%); staff cited higher property and fleet values and added fiber coverage. Work-comp experience rating improved and yields a 30% guaranteed dividend on $30,000. - 5h — Approve commercial, industrial and large multifamily cross-connection program services with HydroCorp (contract extension pending staff approval). Outcome: Approved (voice vote). Notes: The DNR requires a cross-connection control program; HydroCorp’s proposed contract increases monthly cost from the 2022 figure to $8,570.90 in year 1 and includes 60 additional annual inspections to meet compliance obligations.

What’s next: Staff will prepare and file the PSC application and return to the commission as needed. The PSC review is expected to take 12–18 months. Several contract approvals are contingent on final paperwork and budget allocations; staff said construction and relocation projects have funding within current budgets or come in under planned amounts.