COLDWATER, MI (WTVB) – The Coldwater B.P.U. Board of Directors approved requests from B.P.U. Director Paul Jakubczak on Wednesday night as they adopted resolutions that will increase water, wastewater and electrical rates starting on September 1.
The Board heard a presentation in March of 2021 from Dawn Lund of Utility Financial Solutions regarding the results of a Cost of Service study for the Water and Wastewater utilities. During this presentation, she presented a three year rate plan for all meter sizes. One resolution passed up on Wednesday calls for a 2.9% increase on water and a 1.9% increase on wastewater for Fiscal Year 2023.
Jakubczak said future projects would be affected without the increases.
As far as electric rates are concerns, Mark Beauchamp of Utility Financial Solutions recommended in July of 2021 following a Cost of Service study for the Electric utility a three year rate plan for electric customers which was later approved by the City Council.
He presented an updated Electric Financial Projection on Wednesday night which suggested rate changes for the next two fiscal years. But the resolution which was passed 3-1 only requested rate changes for Fiscal Year 2023. Beauchamp discussed the need to accelerate the previously approved rate increases to include an average increase of four percent for Fiscal Year 2023 instead of the previously approved two percent. Jakubczak says some of the factors for the proposed electrical rate increase were inflation, cost of materials and increased power supply costs.
Board member John Wellet voted no.
Both resolutions will be forwarded to the City Council for their action next Monday night.
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