WaterPro seeks 9.5% rate increase; Division of Public Utilities backs settlement

Darren Jensen Peterson, chief executive officer of WaterPro Inc., told the Utah Public Service Commission on Jan. 20 that the company is seeking a 9.5% increase to customers’ culinary water rates, citing rising costs, aging infrastructure and ongoing demand along the Wasatch Front. The company asked that new rates take effect April 1, 2026.

"In closing, I believe our rate case or rate increase of 9.5% we have before you today is fair, equitable, and is what is the best interest of our customers, our community, and the company to go forward," Peterson said during sworn testimony. He said WaterPro serves more than 8,400 culinary connections and about 3,300 pressurized irrigation connections and described outreach to customers, including notices published on the company's website and billing statements in late 2025.

Patricia E. Schmidt, representing the Division of Public Utilities, called Division analyst Tamra Daley as a witness. Daley summarized the Division's review of WaterPro’s application, filings and financial records and said the Division found that, although some adjustments to revenue requirements were appropriate, WaterPro sought less than the full revenue deficiency identified by the Division’s model. After settlement discussions between the parties, Daley testified, the Division supports the filed settlement stipulation and recommends approval.

"For the foregoing reasons, the Division recommends the Commission approve the settlement stipulation as filed and approve the requested rate increase with an effective date of 04/01/2026," Daley said.

The Division's review, as described by Daley, included the company's audit financial statements, vendor payments, general ledger transactions, cost-allocation practices between WaterPro and its parent, Draper Irrigation Company, and responses to three formal data requests. Daley also described the Division’s goals—evaluating the reasonableness of costs and management decisions and ensuring any rates established are just and reasonable and in the public interest.

During the hearing the Division moved to admit into evidence the testimonies, application and the settlement stipulation; the presiding officer admitted the filings and exhibits. No cross-examination questions were posed to Daley, and WaterPro representatives indicated they had no further witnesses.

The commission took the hearing under advisement after the parties’ presentations and adjourned. The commission record for this docket is labeled Number 25244301.