Mishawaka officials are considering two major changes. The first is the proposal of a new water rate structure. The second is to exempt the municipal water and electric utility from state regulations.
General Manager of Mishawaka Utilities, Jim Schrader, says the new water rate structure will require customers to pay for what they use. Currently, there is a minimum charge for customers, regardless of if a customer racks up usage charges below that. On the flip side, some customers pay for water they don't need. Schrader says charging customers for what they use will encourage conservation.
The Mishawaka Common Council is scheduled to vote on the rate changes at its meeting on August 20 at 7:00pm in City Hall. A favorable vote won't mean the proposal is passed though. The company will still have to go through the Indiana Utility Regulatory Commission.
It just so happens that Mishawaka Utilities is working to remove itself from the IURC. At Monday's meeting, the council will view this proposal.
By opting out of the IURC, Mishawaka Utilities will gain local control. This would allow a rate change to be approved within a month and a half because it would only need local approval. Currently, it takes six to nine months. Schrader says that gaining local control would save money.
Informing the public is part of the protocol required to approve this proposal.
A letter was sent out to Mishawaka Utilities customers this past weekend saying that the Common Council will consider "adopting an ordinance which removes the municipal water utility and municipal electric utility of the City from the Jurisdiction of the Indiana Utility Regulatory Commission for the approval of rates, charges and evidences of indebtedness."
Informational meetings are set for this week, where residents can learn about what the changes mean for them. The first is tonight at John Young Middle School. Another is Wednesday at Twin Branch Library. The third is Thursday at St. Bavo School. All the meetings start at 7:00pm.
At the first meeting Monday night, customer had mixed feelings about the proposed changes.
"There will be some changes that are good. Before we had the minimum rate charge, which I was paying if I didn't use one drop of water, a hundred dollars a month. Which is crazy," says customer Rick Kostrzewsi.
But that doesn't mean everyone's bill will be going down.
The utility is trying to close a $1.2 million dollar rate gap and wants to increase rates.
If you live out of city limits, it'll cost you 15% more than those in city-limits.
"I don't agree there. We're all part of the same system. We all pay to the same place, it all comes from the same place, therefore, no," says Kostrzewsi.
If these proposals are approved, bills for folks who don't use water will go down about $4 a month, but those who use about 1,500 cubic feet a month will see about a $5.85 increase. For people who live outside the city, that will be about $10.88.
