BWL board OKs two-year price hike for electric, water customers
Customers will be paying more for water and electric from the Lansing Board of Water and Light after a rate increase was approved Tuesday.
The utility will raise electricity rates 9% and water prices more than 18% over the next two years, with about half of the increase starting Nov. 1 and the rest kicking in a year later.
The rates will increase by 4.5% and water rates more than 9% effective Nov. 1, with the same electric increases and a slightly larger water increase on Nov. 1, 2023. Customers would see the first increase in their December bills and by December 2023 a typical residential customer with both electric and water service would see their annual costs rise by $208, or more than $17 a month.
BWL Strategic Planning Manager Paul Eory said the rate proposal was overdue since planned increases were delayed because of the pandemic, and inflation because and other increased costs are impacting the city owned utility.
The commission approved the rate hike in a unanimous vote.
There may be additional rate hikes every year through at least 2027, according to a forecast from the utility but the Tuesday vote solidifies the two-year rate increase. The rates were last increased in February 2020 for water, electric and steam, with the last increase for chilled water customers in 2014.
Other utilities, including Consumers Energy and DTE, are also pursuing electricity rate increases from state regulators. Both of those larger utilities have higher rates, according to a comparison done by the state's Public Service Commission at the State Journal's request.
They are both seeking higher percentage increases to the electric rate, 6.8% and 8.8%, although state regulators have in previous years reduced such requests.
BWL is owned by the city of Lansing is not subject to the same state approval process so the board vote Tuesday was the last step for the rate increase.
Contact Mike Ellis at mellis@lsj.com or on Twitter @MikeEllis_AIM
This article originally appeared on Lansing State Journal: Board of Water & Light board OKs two-year price hike for electric, water
