By JAN McLAUGHLIN
BG Independent News
The average home in Bowling Green will see its monthly water bill go up 7%, from $12.80 to $13.70, starting on April 1. This follows a 7% rate increase for sewer services that went into effect in January.
No increases are expected this year in city electric rates.
Brian O’Connell, director of utilities and infrastructure for the city, presented the water rate adjustment proposal recently to the Board of Public Utilities. The department’s budget with the water and sewer rate increases for 2025 had already been approved.
O’Connell said the last time the city upped its electric rates was in July of 2021.
“It looks like our current rates will cover the expenses we have projected,” he said.
The city is predicting higher electric sales next year, which could help prolong the need for rate hikes.
“We are anticipating some higher sales due to load growth. We’ll continue to see that in the future as Abbott comes on line,” O’Connell said in November of the new Abbott Labs facility planned on the north side of the city.
Kilowatt hour sales have grown from 483,811 in 2020 to an expected 518,700 in 2025.
But while electric rates will remain steady, O’Connell recommended that both the water and sewer rates be increased by 7%.
Water sales have been relatively flat in recent years, partially due to appliances and equipment that are built to use water more efficiently, he said.
Historically, the typical rate increases for water and sewer services tend to be in the area of 5% or 6%. O’Connell said the decision to ask for 7% increases was not made without great deliberation.
“The expenses are there to justify it,” he said.
The last time the water and sewer rates were increased was in 2023.
One of the larger expenses forecasted in the water budget is the replacement of aging water meters. The budget calls for $2 million to be put toward new meters. O’Connell said he had wanted to replace more, but the budget couldn’t tolerate it.
“We’re seeing a large number of water meters failing,” he said.
“The rates are not keeping up with expenses,” O’Connell said.
While residential users are expected to average $1 more a month for water, the average commercial user will see monthly bills increase from $87 to $94, and industrial users from $755 to $809.
O’Connell reported that while water sales were up 2.8% in 2024, the higher expenses are outpacing the additional sales revenue. The cash balances were cut into last year, with more dips into the balance expected this year.
“If we do not make some adjustment in 2025, it will likely result in the need for a larger adjustment in 2026,” O’Connell said.
