By JAN McLAUGHLIN
BG Independent News
Bowling Green residents will see electric rates remain the same in 2025, but will likely see increases in their water and sewer bills.
Next year’s budget for city utilities was presented Tuesday evening to a joint meeting of City Council and the Board of Public Utilities. No action was taken on the recommendations explained by Brian O’Connell, director of utilities and infrastructure for the city.
O’Connell said the last time the city upped its electric rates was in July of 2021. And no rate adjustments are planned for electricity in 2025.
“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.
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%.
Historically, the typical rate increases for water and sewer 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.
If approved, water rates would go up in April. The last time those rates were increased was April of 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.
If approved, the sewer rates would also go up by 7%. Those would be the first to be felt, going into effect in January 2025.
“The rates are not keeping up with expenses,” O’Connell said.
The last time sewer rates increased was in January of 2023.
Looking further out, O’Connell said electric rates are expected to increase approximately 10% over the next four or five years. The goal is to make that a gradual increase.
“So it’s less impact on customers,” he said.
While electric consumption is expected to increase, so are water and sewer services – with the city selling water to the Northwestern Water & Sewer District for the new data center up on Ohio 582, and the new sewer line from Dunbridge sending sewage to the Bowling Green wastewater treatment plant.
The budget proposal will go before the utilities board first, then to City Council for approval.
