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U.S. News
27 December 2024

Municipal Utility Rates Set To Increase Nationwide By 2025

Cities address aging infrastructure with significant rate hikes amid rising public concern.

Utilities across various cities are bracing for significant rate hikes beginning as early as 2025, aimed at improving aging infrastructure and managing environmental impacts. From Bloomington, Indiana, to Social Circle, Georgia, residents will see increases ranging from single digits to over 20 percent, prompting discussions about equitable fees and long-term sustainability.

Starting January 1, 2025, the City of Bloomington Utilities (CBU) will implement a sewer rate increase of 6%. Customers can expect their monthly bills to rise by less than $2, based on their water usage. This increase follows a prior 12% hike enacted last year, as approved by the Bloomington Common Council and Utilities Service Board. The funds garnered will support enhancements to wastewater processing and sewer repairs, as emphasized by CBU officials.

Coinciding with the sewer rate adjustment, CBU will also introduce service fees for credit and debit card payments, with charges amounting to at least $2.50 or 3.5%, whichever is greater. While this decision aims to promote greater equity among customers—many of whom do not use debit or credit cards—it has sparked mixed reactions from the public. Automatic transactions by withdrawal will remain fee-free, and financial assistance options are available for those facing challenges.

Down south, Social Circle City Council took steps to adopt new water, sewer, and gas rates effective July 1, 2025, as part of their five-year utilities rate plan. This initiative aims to raise approximately $70 million through revenue bonds to support significant infrastructure improvements, including the construction of a new wastewater treatment plant. City Manager Eric Taylor noted the necessity of the changes, emphasizing the need to replace the existing facility dating back to 1962 with one capable of handling up to 3 million gallons daily.

For residential customers within city limits, the base water charge will rise from $27.46 to $34.33 monthly. By July 2029, the rate is projected to increase to $45.35. Similarly, residential sewer fees are set to escalate from $24.11 to $32.55, reaching $45.35 shortly thereafter.

On the other side of the ocean, South West Water (SWW), serving southwestern regions of the UK, is set to impose an eye-watering 23% average increase on bills over the next six years, starting April 2025. The water company plans to invest £2.8 billion toward infrastructure upgrades and to mitigate sewage spills, leading to average annual bills rising from £497 to £551 by the 2025-26 fiscal year. Critics, including MP Caroline Voaden, condemned the increases, labeling them as 'insulting' to constituents already grappling with the cost-of-living crisis.

Adding to the outcry, the UK’s environmental watchdog, the Office for Environmental Protection, recently criticized regulatory bodies for their ineffective measures against water companies discharging raw sewage. Voaden urged for changes at Ofwat, advocating for stronger accountability from water companies, emphasizing the need for transparency concerning spending on infrastructure improvements.

Meanwhile, the Mohawk Valley Water Authority has approved a modest rate increase of 5.5% for the 2025 fiscal year, reflecting similar trends of increasing charges to address municipal needs. Just one public attendee voiced concern at the authority's meeting, highlighting a growing discontent among residents toward rising utility costs.

Finally, Moundsville, West Virginia, anticipates a 19% hike in sewer rates for its residents set for winter 2026. This increase, driven by the Moundsville Sanitary Board’s comprehensive improvement project, aims to eliminate combined sewer overflows—a concern raised by the city's environmental regulations. Although the hike may seem steep, Moundsville officials argue it is necessary to protect local waters and improve the overall sanitation of the community.

From Indiana to the various corners of the United Kingdom, residents are bracing for utility rate increases as municipalities wrestle with the rising costs of maintaining and upgrading aging infrastructure. The challenges are unified: balancing fair rates with necessary investments to safeguard environmental health and to meet the modern demands of cities.

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