Utility costs are on the rise after the Wisconsin Public Service Commission on Monday approved Superior Water, Light and Power Co.'s request to increase electric, gas and water rates.
Rising expenses for capital improvements, increased spending on conservation programs and the cost to build a new electric substation were cited as reasons to justify the increase. It's expected to annually increase revenue by about $1.7 million, offsetting the estimated $3 million construction costs for a new substation planned for the area of North 29th and State streets and Washington and Elmira avenues, among other cost increases.
For the average customer -- one who uses about 600 kilowatts per month -- the increase will add about $2.25 to the electric bill. The average water customer -- about 6.5 CCF per month -- will pay an additional $3.
With the cost of gas down this year, said SWL&P Treasurer Bill Bombich, customers likely will pay less in spite of the $1.70 monthly increase in distribution costs.
The increase approved by the PSC is smaller than the utility originally sought when it applied for the rate changes earlier this year, Bombich said.
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SWL&P wanted a 19.8 percent increase in water rates and 4.6 percent increase in electric rates to support the costs of a new water tower in South Superior and an electric substation planned for construction in the Billings Park area north of 28th Street. However, the commission only approved an 8.5 percent water increase and 2.8 percent increase in electric costs because of project delays that will postpone construction, Bombich said.
When a utility requests a change in rates, the PSC conducts an audit of the utility's forecasted expenses and revenues, according to a news release issued by the company. The agency looked at the amount SWL&P needs to provide a reliable source of energy and water service to customers, which includes costs for maintenance, new construction, fuels, environmental protection and employee wages.
The new rates become effective after the written order is issued. They're expected to go into effect by Jan. 1.
Shelley Nelson covers Superior/Douglas County. E-mail snelson@superiortelegram.com or call (715) 394-4421, ext. 134.
