First rate increase in nearly three years 

The Lansing Board of Water & Light (BWL) Board of Commissioners approved the first rate increase since February 2020 at its Board Meeting yesterday, Tuesday, September 27. The rate increase will go into effect on November 1, 2022, and outlines a two-year rate strategy to allow customers to plan for future increases.

“I want to thank the Board of Commissioners for approving this important initiative. I know rate increases are difficult for our customers, which is why we postponed them for as long as possible. This is the first rate increase in almost three years, and we’re still under the rate of inflation and cheaper than our nearest competitors,” said BWL General Manager Dick Peffley. “These increases are necessary to ensure we’re able to maintain and replace our aging infrastructure and continue delivering a safe, reliable, and affordable utility product while being mindful to our customers’ pocketbooks.” 

Rate increases for each utility will be as followed:

• Average Electric Rate Increase: 2.05% 
• Residential: 4.5% increase for 2022 and 2023
• This will result in a financial impact per month for a 750 kWh usage customer of $4.73 as of Nov. 2022 and $5.57 as of Nov. 2023
• Last increase was in February 2020
• Average Water Rate Increase: 9.5%
• Residential: 9.2% in 2022 and 9.3% in 2023
• The first 2 CCFs will be discounted for residential customers
• This will result in a financial impact per month for a 5 CCF usage customer is $3.35 as of Nov. 2022 and $3.71 as of Nov. 2023
• Last increase was in February 2020
• Steam rate increase: 9.95% (mostly commercial customers)
• 9.95% for 2022 and 2023
• Last increase was in February 2020
• Chilled Water rate increase: 4% (all commercial customers)
• 4% for 2022 and 2023
• Last increase was in 2014 

The rate increase for 2023 will result in an increase of $5.2 million for electric, $4.4 million for water, $900,000 for steam and $200,000 for chilled water. 

The BWL has approximately 100,000 electric customers, 58,000 water customers, 155 steam customers and 19 chilled water customers. For more information about the BWL’s energy portfolio and to view a tour of the new plant, visit www.lbwl.com/facilities. 

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