The average Owensboro Municipal Utilities customers can officially expect an approximately $2 increase on their monthly water bill starting in March, plus another $2 bump a year from now.
Owensboro City Commissioners on Tuesday approved OMU’s proposal of raising rates by 9% this March and another 9% in March 2025.
OMU officials said this year’s hike would result in a $1.94 monthly increase for average customers, with next year’s average bill going up closer to $2.
OMU’s Utility Commission approved the proposal in January. Following concerns about increased rates, OMU staff looked for alternative solutions but still found the 9% increase to be the best option due to increased costs in chemicals, debt coverage, and other fiscal responsibilities.
Additionally, President of Utility Financial Solutions Mark Beauchamp previously said wholesale water purchasers’ renewal and replacement rates (R&R) will need adjustments because they are used seasonally — only about 6 months a year. Those rates would bump up from 1.25% to 2.2%.
Beauchamp said that much of OMU’s current revenue requirement is being driven up by additional funds in transmission and distribution, customer service and information, and other internal expenses. He said that by making rate adjustments, OMU is ensuring their debt coverage ratio is above the 1.45 mark, enabling them to continue working with their providers.
OMU Manager of Planning Laura Chapman previously said the R&R rate increase will not directly affect customers’ bills. She said the rate increase will affect their wholesalers, which Chapman and Public Relations Communications Manager Sonya Dixon both said could cause a small bump to customers’ bills from other agencies, such as the water districts and RWRA.
