- Artesian Water received temporary authorization in November 2023 to increase water rates in Delaware 14.6%.
- The Delaware Public Service Commission on June 12 will hold a hearing to discuss the total rate increase the utility company wants of 15.2%.
- Artesian, like other water utility companies, say the rate increases are needed to cover growing costs for maintaining, repairing and replacing the systems and tackling known contaminants in water.
Artesian Water is looking to increase water rates by 15.2%, a hike that will be the center of a public hearing with the Delaware Public Service Commission on June 12.
But Artesian Water officials say any additional increase, if granted by the commission, will be nominal to the average water user in Delaware since the water utility company was granted a temporary rate increase of 14.6% on Nov. 28, 2023.
Artesian Water serves about 300,000 customers in the Delmarva Peninsula, encompassing 90,000 properties throughout Delaware as well as parts of Chester County, Pennsylvania, and Cecil County, Maryland.
The water utility company initially sought a rate increase of $17.5 million in April 2023, which would have amounted to a 23.84% water rate hike over the previous year’s rates on Delaware customers, according to the public notice. The utility later agreed to an amended increase of $11.2 million in its water service.
Artesian officials said the new rates “are designed to support Artesian Water’s ongoing capital improvement program and to cover increased costs of operations, including chemicals and electricity for water treatment, water quality testing, fuel, taxes, interest, labor and benefits.”
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Both public and private utilities providing water to Delawareans have sought to increase rates this year.
The Delaware Public Service Commission earlier this year approved Veolia’s request to raise rates for its customers, which went into effect April 1, 2024. The average residential bill is expected to increase by approximately 4.02%.
And the city of Wilmington, which provides water, sewer and stormwater services within city limits along with 13,000 New Castle County properties, also increased its rates this year, albeit not as high as originally proposed.
Artesian’s water rate increase proposal
The public service commission will meet at 1 p.m. June 12 in the commission’s hearing room located at 861 Silver Lake Boulevard in the Cannon Building Suite 100 in Dover.
Because Artesian already received approval from the commission for a temporary rate increase of 14.6%, utility officials said the remaining increase will be less than 1% and “nominal” to the average user.
The last time the utility sought to increase base rate charges was in April 2014.
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Artesian officials said if the new rate is approved by the commission, the average customer who typically uses 4,000 gallons a month would see their bill climb to $52.94, which is about a $3 increase on the average monthly bill before the temporary increase approved in November.
Artesian Water customers who have questions regarding the proposed rate increase, or billing in general should contact the utility’s customer service department between 8 a.m. and 4:30 p.m. Monday through Friday at 302-453-6930.
Why are water rates climbing in Delaware?
Delaware Public Service Commission Executive Director Matthew Hartigan said several factors are at play for water utilities seeking rate increases, from growing personnel costs to inflated prices for supplies and materials.
“It’s a little a different for each company. One common thing is they are facing increased costs from personnel costs to pipes and meters,” Hartigan said. “As those costs increase, they are less able to absorb them, and have to come in for a rate increase.”
Artesian and other water utility providers have pointed to inflation, the costs for maintaining the infrastructure as well as replacement and system upgrades, and addressing known contaminants like PFAS as reasons for the need to increase water rates.
The Environmental Protection Agency recently released data showing that nearly 300 of the country’s public drinking water systems had levels of PFAS – often known as “forever chemicals” – higher than allowed under recently-established limits.
Several of those water systems flagged were in Delaware, including Wilmington, Newark, Smyrna, Lewes and Rehoboth Beach.
Hartigan said the new regulations put out by the EPA regarding “forever chemicals” may prompt utilities to return for another rate hike sooner than later, but time will tell. While public utility…
Read More: Why Artesian Water wants to increase water rates in Delaware