COLDWATER, MI (WTVB) – The Coldwater City Council adopted resolutions Monday night that will increase water, wastewater and electrical rates starting on September 1 after they were passed by the B.P.U. Board of Directors this past Wednesday.
One resolution calls for a 2.9% increase on water and a 1.9% increase on wastewater for Fiscal Year 2023.
B.P.U. Director Paul Jakubczak said on Wednesday future projects would be affected without the increases.
Mark Beauchamp of Utility Financial Solutions recommended in a July of 2021 Cost of Service report 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 electrical resolution 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.
Council member Randall Hazelbaker said his constituents are not happy about the higher rates.
Mayor Tom Kramer and Council member Travis Machan pointed out this was part of a gradual rate increase.
Jakubczak says some of the factors for the proposed electrical rate increase were inflation, cost of materials and increased power supply costs. During Monday’s discussion, it was stated the average residential household increase would be less than six dollars a month.
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