35.8 F
Naperville
Friday, March 29, 2024

Naperville residents will find increases in water and electric rates beginning January 2018

-

Above / Customers will see increases in water and electric rates reflected on January 2018 utility bills. (PN File Photo)

NAPERVILLE, Ill. — Naperville utility customers are advised that they will see rate increases in both the water/wastewater and electric portions of their utility bills beginning in January 2018.

The water/wastewater increase, which was approved in December 2017, positions the Water Utility for a structurally balanced budget moving forward.

An average residential water/wastewater customer will see the following increase in their monthly bills through 2021:

Year

Average monthly utility bill under current rates

Average monthly utility bill under approved January 2018 rates

Change to monthly utility bill

2017

$67.59

$67.59

NA

2018

$70.18

$75.12

$4.94

2019

$73.14

$78.22

$5.08

2020

$75.36

$80.66

$5.30

2021

$77.63

$82.14

$4.51

In 2017, the Water Utility conducted a rate study to help plan for its financial needs through 2021. Throughout the study, the utility considered the costs of day-to-day operations, critical infrastructure improvements needed to ensure continued reliability and upcoming Illinois Environmental Protection Agency regulations that would require phosphorus removal improvements to the Springbrook Water Reclamation Center. A new rate structure was put into place in May 2017 to meet these needs.

Explanation of rate increase to fund safe, reliable & efficient water

However, during the 2018 budget process, discrepancies were noted in the Water Utility’s year-to-date financial performance that ultimately led to the discovery of three errors in the 2017 rate study. These errors resulted in the utility’s actual revenues and expenses differing significantly from what the rate study projected. Without intervention to fix the errors, the utility would be underfunded for the foreseeable future. 

The rate increase provides the utility with a structurally balanced budget where revenues fully cover operating expenses and capital improvement costs beginning in 2018. In addition, the new rates begin the process of rebuilding the utility’s required cash reserves within the coming years. The utility’s operating budget for 2018 is flat due to operational efficiencies, and through these efficiencies, the utility absorbed several hundred thousand dollars of increases in energy, healthcare and other expenses to keep utility rates as low as possible. 

“We regret the errors in the rate study and the late changes in the rates for 2018,” Water Utility Director Jim Holzapfel said. “We recognize that rate increases are never welcomed, but ensuring adequate financial resources to provide safe, reliable and efficient water and wastewater services to our customers is critical. A structurally balanced water utility also aligns with our City’s financial principle of maintaining an overall structurally balanced budget. We want to be as transparent as possible with this rate increase so our customers can appropriately plan for the coming year.”

New rates include phosphorus surcharge

The new rates still include a phosphorus surcharge as a separate line item on utility bills, and the rates in the above chart include this surcharge figure. In 2018, the charge will increase to $1 per month from .50 cents per month and to $1.80 per month in 2019, 2020 and 2021. More information on water rates is available on the City’s website at www.naperville.il.us/waterrates.

Electric rates going up, too

Electric rates also will be increasing in 2018. This is a planned increase resulting from the utility’s 2015 rate study. This study called for annual rate increases to account for increasing purchased power costs, rebuilding required cash reserves and repaying a loan to the Water Utility. Effective January 2018, residential customers will see a 3.6 percent increase in their rates. Currently, the average residential customer’s monthly bill is $107.53; this monthly average will increase to $111.39 in 2018.

For more information on the City of Naperville, visit www.naperville.il.us.

Story submitted by Kate Schultz, Communications Specialist, for the City of Naperville.

Stay Connected!

Get the latest local headlines delivered to your inbox each morning.
SUBSCRIBE
- Advertisement -
City of Naperville
City of Napervillehttp://www.naperville.il.us.
About Naperville: Located 28 miles west of Chicago, Naperville, Ill., is home to approximately 145,000 people. This vibrant, thriving City consistently ranks as a top community in the nation in which to live, raise children and retire. The City is home to acclaimed public and parochial schools, the best public library system in the country, an array of healthcare options and an exceptionally low crime rate. Naperville has ready access to a variety of public transportation, housing and employment options. The City’s diversified employer base features high technology firms, retailers and factories, as well as small and home-based businesses. Residents also enjoy world-class parks, diverse worship options, the opportunity to serve on several City boards and commissions, a thriving downtown shopping and dining area, a renowned outdoor history museum known as Naper Settlement and an active civic community. For more information, please visit our website at www.naperville.il.us.

LATEST NEWS

DON’T MISS OUT!
GET THE DAILY
SQUARE-SCOOP
The latest local headlines delivered
to your inbox each morning.
SUBSCRIBE
Give it a try, you can unsubscribe anytime.
close-link

Stay Connected!

Get the latest local headlines delivered to your inbox each morning.
SUBSCRIBE
close-link