Madison Water Utility is asking the Public Service Commission for a rate increase and changes to its rate structure to incentivize users to conserve water.
The utility wants to increase revenue by 30 percent by increasing rates, on an annualized basis, 7.5 percent per year for each of the four years since the last rate increase. The utility has not decided how the increase will be distributed among residential, multi-family, commercial, industrial and public authority customers.
General manager Tom Heikkinen said the increase is needed to replace aging water mains, improve water quality and make a payment in lieu of taxes to the city.
This is the first rate increase requested in four years, according to the utility.
If approved, Madison Water Utility will be the largest water utility in Wisconsin to offer a conservation rate for residential customers.
If approved, the new rates would go into effect in the spring of 2015 at the earliest.