Port water rate to jump again, this time by 22.5%

The cost of water in Port Washington will increase 22.5% in July — the second part of a 67% increase required by the Public Service Commission to pay for improvements to the water filtration plant.

The increase was approved by the PSC in 2023.

Port Finance Director Mark Emanuelson told the General Government and Finance Committee Tuesday that most customers will see their bills increase by $7 to $10 per month, or $14 to $20 for each bimonthly bill.

The increase, he noted, will be reflected in the water bills customers receive in September — bills that cover water use in July and August.

Emanuelson told the committee that the second phase of the water rate increase was to begin when work on the plant neared completion — something originally expected to occur in fall 2025.

Delays in getting the water plant project started means that the rate increase was delayed as well, he said.

Emanuelson noted that people may have forgotten that the rate increase was coming, adding the city will include an insert explaining it with the July water bills and also post information on the city’s web site.

“This is old news from 2023, but it’s going to be news to many people,” he said.

“I don’t like it but it’s good to get a heads up,” Ald. Dan Benning, the committee chairman, said. “We really didn’t have a choice in this. This was PSC directed.”

The PSC approved a 67% increase in water rates, payable in two steps, to pay for $18.3 million in upgrades to the water plant.

City officials had argued for a total 40% increase, saying it would be easier for residents to afford, but the PSC opted for the higher increase to ensure the utility is in a strong financial position and that the so-called rate of return is close to the industry benchmark of 6.1%.

The PSC rate ensures a rate of return of 5%, officials said at the time, while the city’s proposal called for a 3% rate of return.

The PSC also said it anticipates the city will need additional funds for future water main projects, they noted.

The water plant project was mandated by the Department of Natural Resources, which is requiring that the plant meet current codes and address deficiencies, primarily regarding backup power and changes to the clearwell, that had been grandfathered by the state in the past.

The project included building an addition to the plant that takes up much of the once open area just south of the original facility.

It would also replace equipment that’s at the end of its life, officials said, noting much of the equipment is at least 50 years old and some is more than 70 years old.

The work is expected to extend the life of the aging plant — which still contains much of the original equipment — by 25 to 30 years.

Work on the plant is expected to be completed later this year.