Augusta Utilities asks commissioners to consider 6.5% rate increase, meter and tap‑fee hikes to cover rising costs and capital needs

Director Wes Bynes told the commission during the second fiscal 2026 budget hearing that Augusta Utilities faces a squeeze of rising operating and materials costs, unfilled positions and large planned capital projects that together create pressure on rates.

Bynes said operating costs are up by about $1.6 million to roughly $20,498,100 and that supply costs have risen from $15 million to nearly $21 million, driven in part by a $3.8 million purchase of metering components to complete a transition from AMR to cellular read (AMI) meters. The capital budget, he said, has risen from $8.7 million to roughly $12 million, citing plant generators, vehicles, roofs and building repairs.

Bynes described interfund transfers and accounting adjustments used to align multiple spreadsheets in the formal budget and said the department’s cash position will depend on how much capital is actually expended: a modest positive position without capital but a projected negative position once full capital spending is included. He identified roughly 50 vacant positions across the utility and said some vacancies temporarily reduce personnel expense but are not by design.

Why it matters: the department is juggling long‑term plant repairs, an ambitious meter‑replacement program and emergency repairs stemming from last year’s hurricane while operating in a rising‑cost market. Bynes said the commission’s decision on rates and fees will determine whether planned work proceeds as scheduled.

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