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Elmwood to submit response after PSC inquiry flags outdated water rates
Summary
The Village of Elmwood authorized submitting a response to the Public Service Commission of Wisconsin after the PSC signaled village water rates may no longer cover operating costs and could prompt a formal investigation requiring a full rate case within 30 days.
Village President Neil Boltik reported that the Village received correspondence from the Public Service Commission of Wisconsin raising concerns about the adequacy of Elmwood's water utility rates. Staff told trustees that the last full water rate study took place in 1996, expenses have increased and cash reserves have declined, prompting PSC notices.
The PSC correspondence indicates the commission is considering opening a formal investigation that could require the Village to file a full rate case within 30 days; if the Village does not act, the PSC could set rates on the Village's behalf and charge the Village for associated costs, including consultant fees. Boltik asked Clerk/Treasurer Holly Malaszuk to include supporting email correspondence with the Village's response to document efforts to obtain necessary information.
Trustee Pam Marson moved and Trustee Jason Severson seconded a motion to approve and submit the Village's response; the motion carried on a roll call vote. The minutes record the motion and summarize the PSC's concerns, but do not reproduce the PSC letter itself or prescribe a course of rate changes. The Personnel and Finance Committee will continue to assist staff as needed in documenting financial records and next steps.
Next steps: staff will compile and attach supporting correspondence to the response and monitor any PSC deadlines or requests for a full rate case.
