Lansing Board of Water & Light plans rate increases beginning 2018

LANSING — If you get your utilities from the city's Board of Water & Light, you will likely see a bigger bill next year. 

The municipally-owned utility plans to increase water, electric and steam rates effective Feb. 1, 2018. 

Members of the public will have a chance to weigh in during a 5:30 p.m. hearing Nov. 30. 

BWL's board of commissioners will vote on whether to approve the three-year rate schedule during a 5 p.m. public meeting Dec. 5.

If approved, residential electric rates would increase 3.9% each year in 2018, 2019 and 2020. That's an average monthly increase of $3.16 the first year, according to BWL.

Water rates would go up 5.5% for residents in 2018, which is an average bump of $2.29 per month. The rates would increase an additional 7.5% in 2018 and 2019.

BWL has close to 97,000 electric customers and more than 56,000 water customers.

More:

5% BWL bill increase possible for East Lansing residents

Communities struggling to keep water, sewer rates affordable

Poll on BWL shows support for renewable energy

Steam customers would see increases of 5.5.% in 2018 and 7.5% in 2019 and 2020. That amounts to an average $172.90 increase for each of the utility's 172 steam customers in 2018, according to BWL.

Rates for the 19 customers who get chilled water would remain the same. 

BWL General Manager Dick Peffley noted that the utility did not increase rates in 2015, 2016 or 2017.

"I don't like rate hikes," Peffley said. "I'd rather build the revenue on new businesses coming to town than increase the cost to our existing customers."

BWL officials say the rate hikes are necessary to fund infrastructure and meet environmental commitments. 

The public utility has pledged to retire the coal-burning Eckert Power Plant in Lansing's REO Town area by 2020.

It has also promised to close the coal-powered Erickson Power Plant in Delta Township by 2025. 

Peffley said BWL will release more details about plans to replace the Eckert plant with a new power generation facility in coming weeks.

BWL Spokesman Stephen Serkaian said he could not say whether the utility would increase rates after 2020.

"This forces us to live within our means for the next three years," he said of the proposed rate schedule. Beyond that, "we can't predict what's going to happen in the future."

BWL contributes 6.2% of its revenue to the city of Lansing as a payment in lieu of taxes. That includes revenue from customers outside city limits. The payment amounted to about $22 million during the 2016 fiscal year.

Contact Sarah Lehr at (517) 377-1056 or slehr@lsj.com. Follow her on Twitter @SarahGLehr.