ELMWOOD – On July 28, the Village of Elmwood Municipal Water Utility submitted a conventional rate case application to the Public Service Commission to adjust the village’s water rates. This is to ensure that utility revenues keep pace with increasing capital investment and operating costs.

Based on the application and a water rate study, a minimum revenue adjustment of 36.09% may be necessary, according to village documents. For a typical resident customer using 3,000 gallons of water per month, the water portion of the utility bill would increase by $8.51. These figures are preliminary and subject to review by the PSC, who will set the final rates.

Elmwood’s last simplified rate case was in 2018. Average simplified rate case increases are about 3-4% per year. A simplified rate case is an inflationary increase to water rates. The simplified rate case can be used if it meets the criteria of the rate of return test, the present rates test and the last full rate case test (based on the recency and size of previous rate increases). The conventional rate increase requires commission approval through a lengthy application process that includes a public hearing.

At the June 8 Elmwood Village Board meeting, the board authorized Ehlers Public Finance Advisors to move forward with a water utility rate analysis to comply with the PSC’s letter requesting a conventional rate case; PSC’s benchmark rate of return is 6.5% for water utility, and Elmwood is at -1.34% as of the 2025 annual report.

At the July 13 meeting, the village board approved moving forward with submitting the water rate application to the Public Service Commission (PSC) as presented by Ehlers. Over the next few months, the PSC will review the application and establish the final rates. About four months from now, residents can expect a public comment period and public hearing. Any approved rate changes would likely go into effect in early 2027.

According to Ehlers, if the utility didn’t file a rate case application, the PSC may have opened its own docket to set rates for the utility; the village would have had little or no input while still having to pay the associated costs.

Scott Street

At a special village board meeting July 30, the board discussed proposed traffic and parking changes for Scott Street, which runs next to the Elmwood schools. A request had been made to make Scott a one-way street.

The board voted to keep Scott a two-way street with the following changes:

• Install a right-turn-only sign at the exit of the student parking lot.
• Prohibit parking on Scott Street from West Shaw Avenue to the student parking lot between 6 a.m. and 4 p.m. during school hours.
• Establish a school zone with a speed limit of 15 miles per hour.
• Install no-parking signs on the opposite side of Scott Street along the designated student pick-up and drop-off area.
• Designate the parking area along Scott Street from the student parking lot north to Wilson Avenue as visitor parking only.