On July 23rd, 2026, the Village of Marathon City Water & Sewer Utility submitted a Conventional Rate Case (CRC) application to adjust water rates with the Public Service Commission (PSC). The utility submitted a rate case application with the PSC in an effort to ensure revenues are keeping up with the increasing costs for service. The Village is also working on an upcoming Well project and needs to ensure the water utility can support the upcoming debt payments associated with the borrowing for these projects. Pursuing a rate case now, before the project is complete, enables the Village to increase water rates at a lower percent than what might have otherwise been allowed according to the PSC’s method of cost calculation. The application estimates the utility will need a minimum revenue adjustment of $156,018, over 2025 water sale revenue or a 27.34% increase to water revenues. At this time, it is estimated to increase the water portion of the quarterly utility bill by $28.95 for an average residential customer using 12,000 gallons per quarter. The final size of the increase will be determined by the PSC according to their method of cost calculation.
During a CRC, communities have an opportunity to request adjustments to all water fees including restructuring the Public Fire Protection (“PFP”) fee. The PFP charge recovers the cost of providing water for fighting fires and the extra capacity built into the water utility system that is necessary to fight fires. This fee does not include fire fighter salaries or operations of the fire department. The PFP fee is currently structured as a combination fee where a portion is paid via the General Fund by the tax levy and a portion is paid via a direct charge according to assessed value. The property tax levy is paid by property owners through their annual tax bill. As a part of the CRC process the remaining municipal portion of the PFP fee will be moving from the tax levy to become a direct charge on annual water bills following the approval of the CRC with the PSC. Converting to a direct charge on the water bills makes the charge more equitable wherein taxpayers are not subsidizing tax-exempt properties which would benefit from the use of Village water to fight fires.
In the coming months, the PSC will review the application and set final rates. It is anticipated that the PSC will open a public comment period and hold a public hearing 4 months from the application filing date. Once the PSC creates the customer notice, a more formal notice will be sent out with the PSC final determination and public hearing information. The Village anticipates the final approved rate changes to go into effect around the 1st quarter of 2027.
Any questions can be directed to Village Administrator, Steve Cherek at 715-443-2221.
Respectfully,
Andrew Berens – Utility Commission Chair
Kurt Handrick, Jr. – Village President