Naperville's Electric, Water Bills Go Up Starting January

NAPERVILLE, IL — Water and electric rate increases will take effect January. The City of Naperville has learned from a water utility rate study that in order to meet needs for improvement, a new rate structure was put in place in May of 2017. Some discrepancies, however, were noted in the 2018 budgeting process.

In a press release from the City of Naperville, there were three errors in that 2017 rates study that resulted in the utilities actual revenues and expenses "differing significantly from what that rate study projected." Without funds, the utility would be underfunded for the foreseeable future, it said.

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

The new rates include a phosphorus surcharge as a separate line item on utility bills, that will increase a dollar per month from .50 cents, and to $1.80 per month the year after that.

The rate increase makes for a structurally balanced budget, in addition to rebuilding the utility's required cash reserves in the coming years, the City of Naperville said. 2018's utility flat operating budget is made possible by its operational efficiency. Because of that efficiency, the utility absorbed several hundred thousand dollars of increases in energy, health care and other expenses to keep those 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." Holzapfel said they want to be as transparent as possible with this rate increase.

Customers will also see a planned electric rate increase of 3.6 percent in January. This stems from a 2015 study that called for an annual rate increase to cover power costs, rebuilding cash reserves and repaying a loan to the Water Utility. On average, a monthly bill is $107.53. In 2018, it will bump up to $111.39.

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