Bay City leaders consider new utility rates - WNEM TV 5

Bay City leaders consider new utility rates

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New utility rates are on the agenda in Mid-Michigan.

Commissioners in Bay City are considering proposals to raise the prices residents pay for water and electricity.

The proposal to raise the water rate cites the increased cost of purchasing water from the county. At the beginning of the year, Bay County increased the rate it charges municipalities by $0.68/ccf. If the proposed amendment passes, Bay City water customers would receive the same rate increase in August.

"If you're being billed a dollar you have to bill that back out so it's equal on the system," City Manager Dana Muscott said.

The City Commission previously voted to raise water rates in August, 2017.

Muscott hopes to lower rates in the future.

"There's things we need to do to our infrastructure to obviously bring down those costs to our customers."

Electricity rates are being reconsidered following a study by an independent firm. Last year, the city hired Utility Financial Solutions to determine if rates were fairly distributed between residential, commercial, and industrial customers.  The proposed amendment includes an increase in monthly customer charges, but most customers would pay less for the electricity they use.

On average, the city expects electricity revenue to increase by 1.5 percent in the next two fiscal years, and 1 percent in the following fiscal year.

The commissioners are expected to vote on the utility rates in two weeks.

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