RATE INCREASE UPDATE
At Marion Utilities, our number one priority is to provide our community with safe, high quality water service at the lowest possible cost. With that in mind, and considering the current economic climate, we are now looking at future rate increases that will be necessary to continue to meet this goal.
Right now we are in Phase II of the 2023 water rate increase, with subsequent phases to be implemented yearly through 2028. There are a few reasons why the 2023 increase was not sufficient: record-setting inflation rates, rising operating costs and aging infrastructure that is now requiring more immediate attention. Additionally, the new rate structure actually reduced water rates for many customers – a good thing for our lowest water consumers.
An acceleration of the phases would provide an increase of about 15.41%, while it is estimated that what we actually need is closer to 44.24% for long term sustainability. We have asked our board and initiated the steps to petition the IURC for a new rate case.
Some additional facts about our rates:
- Based on 2024 data, the newly proposed water rate would still be lower than two-thirds of the state, and is likely to shift further downward by the time of implementation.
- The proposed water rate increase of 44.24% will amount to approximately $6 – $8 per month for most residential customers.
- Our need for a rate increase is completely independent from any economic prospects which may be on the horizon. We have been drawing down our financial reserves for 10 years and have a long way to go to make that up.
- Our priority is and will continue to be providing safe, high-quality water to our community.
We realize that another rate increase is news nobody wants to hear. Marion Utilities values its customers, and we don’t take our community’s faithful support of the local utility lightly. Anyone who has questions or concerns about the rate increase or any other matter is encouraged to contact us at communications@marionutilities.com.