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Elmwood board directs Ehlers to proceed with Phase 2 of water-rate study after PSC concern
Summary
The Village of Elmwood voted June 8 to have financial adviser Ehlers continue Phase 2 of a 2026 water-rate study after the PSC expressed concern that the village has not filed a Conventional Rate Case since 1996; the board was warned a PSC-initiated case could add costs and limit local input.
The Village of Elmwood Board of Trustees voted June 8 to direct financial adviser Ehlers to proceed with Phase 2 of the village’s 2026 water rate study following a Phase 1 presentation that flagged state regulator concerns.
Peter Curtin, financial advisor with Ehlers, told trustees the village’s last Conventional Rate Case was completed in 1996 and that the Public Service Commission (PSC) has signaled concern the utility has not applied for a CRC within the recommended timeframe. "If the Village does not proceed with filing a CRC, the PSC could initiate and conduct a rate case on behalf of the Village, resulting in additional costs to the Village and limiting the Village’s input in the process," Curtin said.
Trustees debated the presentation’s summary of historical rate performance, projected cash flows and potential rate impacts. Curtin outlined PSC rate-case procedures and recommended completing a conventional rate case on a regular schedule to preserve the village’s opportunity to shape outcomes and manage costs. After discussion, Trustee Paul Unser moved and Trustee Jason Severson seconded a motion directing Ehlers to proceed to Phase 2; the motion carried on a roll-call vote.
Why it matters: a PSC-initiated rate case can shift control of timing, scope and cost outcomes to the regulator, and the study will inform whether the village proposes rate changes or other financial steps. The board’s next steps will be informed by the Phase 2 analysis and any formal filings that follow.
What’s next: Ehlers will proceed with Phase 2 of the study; the minutes record no specific timeline or dollar estimates for proposed rate changes.
