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City plans 4.1% water rate increase under simplified PSC filing; officials cite rising treatment and capital costs
Summary
Finance staff presented a simplified rate filing that would raise water utility rates by 4.1% under Public Service Commission rules, citing rising operating costs, PFAS treatment and large upcoming capital projects; the average customer impact was described as about $3 per quarter.
Finance Director Winters told the Eau Claire City Council on Monday that the city will pursue a simplified rate increase for the water utility under Public Service Commission (PSC) procedures that would raise rates by 4.1 percent.
Winters said the simplified filing does not change the rate structure or design; instead it adjusts rates to reflect rising costs and help maintain the utility’s long‑term cash flow. He said the average customer impact is about $3 per quarter based on typical usage (16 ccf) and that after the adjustment Eau Claire’s per‑CCF charge would remain on the lower end of comparison cities cited in the presentation.
Winters outlined pressure on utility finances from rising commodity and project costs, calling out PFAS/PFOS treatment (a multi‑million‑dollar treatment project included in the CIP) and larger capital items such as river crossing work, tower painting and generators as cost drivers. He told council staff are pursuing multiple funding sources, including congressionally directed funding, ARPA and a class‑action settlement, to reduce the burden on ratepayers.
Director Berg (water operations) described operational pressures: higher chemical and electricity costs, longer supply lead times for parts and the need to maintain minimum reserve balances to ensure reliable service. Berg said that without rate adjustments the utility is drawing on reserves and that the simplified filing is a step before a conventional rate case expected in 2027 that would address larger capital needs.
Winters said the simplified filing follows a November resolution that authorized staff to begin the rate application process. The ordinance amendment that authorizes adjustments to the fee schedule was noted as an action for the council agenda the following day.
There were no public speakers on the rate filing and no council vote at the presentation; Winters said staff will return with the formal filing and ordinance for council consideration.
