ESCANABA, Mich. (WZMQ) – Escanaba residents will see increases on their utility bills in the new fiscal year.
On Monday, the City Council approved a 4% increase for electric rates, a 4.5% increase for water, and a 6% increase for wastewater. Solid waste rates are set to increase by 25 cents for small customers and by a dollar for large customers.
According to Electric Utility Director Gerald Pirkola, some of the changes have been made strategically to help residents adjust to higher costs in the future.
“Escanaba’s energy is made up of three components—capacity, energy, and transmission,” he explained. “We’re anticipating a larger increase in our capacity costs in the 2030 year. Rather than have a potential large rate increase in that year, we thought it would be better to have smaller rate increases up to that year. It’s mainly to lessen the impact come 2030.”
While the exact 2030 capacity cost increase is not yet known, Pirkola says one bid showed it could be roughly 13%. Additionally, transmission costs are going up by approximately 10% this year. However, the City’s current energy contract is not set to change anytime soon.
“Our energy contract goes through 2033,” Pirkola said. “That contract is really good, and we’re going to be looking at potentially adding on to that contract as well.”
Despite the increases, Pirkola says Escanaba’s utility rates remain low compared to those of many neighboring communities.
The new rates are set to take effect on July 1. As previously reported, the City will maintain its current 17.442 millage rate in the new fiscal year.
