LANSING, Mich. (WILX) – This is the second time in two years that the Lansing Board of Water and Light has initiated a two-year rate increase. On Tuesday, the board approved an increase beginning Oct. 1.

“This rate increase is intended to meet the obligations of the Board of Water and Light,” said Tracy Thomas, BWL general counsel.

“The rate increases affect all four utilities, so for an average residential BWL customer who receives both water and electricity, the monthly cost will be approximately $10.90,” said Chief Financial Officer Heather Shawa.

The increases will take place over the next two years.

• Average increase in electricity prices: 6.95% for 2024 and 6.00% for 2025
  • Housing: 7.8% increase for 2024 and 6.8% in 2025
  • This will result in a monthly financial burden of USD 7.02 from October 2024 and USD 6.56 from October 2025 for a customer with an average consumption of 500 kWh.
• Average increase in water prices: 9.23% for 2024 and 9.16% for 2025
  • Housing: 9.5% in 2024 and 9.2% in 2025
  • This results in a monthly financial burden for a customer with 2 CCF consumption of $1.35 starting in October 2024 and $1.31 starting in October 2025.
  • This results in a monthly financial charge for a 5CCFusage customer of $3.93 starting in October 2024 and $4.22 starting in October 2025.
• Steam tariff increase: 9.75% for 2024 and 2025 (mainly commercial customers)
• Increase in cold water tariffs: 2% for 2024 and 1.50% for 2025 (all commercial customers)

A total of $20 million was raised for electricity and another $5 million for water.

“Over a period of 30 months, we have not made any tariff increases, but our costs have increased. The current increase is higher than the previous ones, but it is partly inflationary to catch up some of it, although we are still below the rate of inflation, and to support clean and new energy,” Shawa said.

One of the commissioners voted “no” to the resolution because he felt the current plan was too permanent.

“I think we should vote for one year, just one year, and then see what happens next year. You can’t really predict the future, maybe we’ll go ahead anyway, maybe we won’t, but that’s my thinking,” said Dale Schrader, an at-large commissioner.

Officials at the Lansing Board of Water and Light encourage people concerned about the increase to participate in the flexible and affordable payment plans. Also, attend their Community Resource Fair on October 2. Visit their website for more information.

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