What's News in Pleasant Prairie, Wisconsin
34% Rate Increase Proposed
During 2012, the Kenosha Water Utility requested approval from the Wisconsin Public Service Commission (PSC) to raise water rates. This enabled the Village to request an intervention on behalf of its rate payers. Currently, Pleasant Prairie as a wholesale customer of the Kenosha Water Utility pays more for the same amount of water than a retail customer, despite the fact that there are fewer costs associated with serving the Village as a wholesale customer.
While Kenosha Water Utility retail customers are charged one of the lowest water rates in the State, Pleasant Prairie water utility customers have one of the highest. The most recent proposal submitted by the Kenosha Water Utility (as of press time for the April Village Newsletter) proposes to raise the rate it charges Pleasant Prairie for water by an additional 34%. The Kenosha Water Utility has requested a 5.50% rate of return for wholesale customers and lower rate of return of 4.00% for its retail customers.
While the Kenosha Water Utility had a cost of service study (similar to a rate study) completed indicating that a 34% increase is justified, a cost of service study completed by the firm of Baker Tilly on behalf of Pleasant Prairie rate payers indicates that the Village rate should increase by 1% (on the conservative side) or should decrease.
In the April issue of the Village Newsletter (available as a PDF below), you will find information related to Pleasant Prairie’s Water Utility that will help explain how Pleasant Prairie’s water system works, why we purchase water from the Kenosha Water Utility, and what we have done and are currently doing to help keep water rates in Pleasant Prairie at a reasonable level. You can also watch the related video by clicking here.
Information related to the request and intervention can be read first hand at the Public Service Commission's website. The preceding link will take you directly to the Kenosha Water Rate Case on the PSC’s website. By clicking on the "Documents" tab, you will be able to read direct testimony and view all of the documents submitted to the Public Service Commission. Beginning documents are posted at the bottom of the list and newer documents are posted at the top.
A rate hearing was held on April 22 in Madison.
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