Eau Claire Application for Water Rate Hike Approved by PSC

Eau Claire residents could see their water rates jump after the City’s application was approved by the Wisconsin Public Service Commission.

The City of Eau Claire applied to raise water utility rates by 20 percent to cover the funding needed for critical infrastructure improvements over recent years. Despite a few dozen public comments arguing against the increase, the Public Service Commission determined that it was financially necessary for the City.

The most significant driving factor behind the request is the construction of the new $20 million PFAS removal facility at the water treatment plant. Like countless other municipalities across Wisconsin, the City of Eau Claire has spent years working to eliminate the forever chemicals from the drinking water supply.

PFAS were first detected in the drinking water in 2020, with contamination levels increasing above the Wisconsin Department of Health Service’s hazard index for the first time just one year later. PFAS levels continued to rise near the Chippewa Valley Regional Airport, forcing the City to shut down a number of wells in the area.

The City of Eau Claire began planning the PFAS removal facility hoping that most of the cost would be covered by a settlement with 3M. City officials expect to receive nearly $9.5 million through 2033 under that settlement. They also believe that settlement combined with settlements from lawsuits involving other companies could bring in over $12 million in total. The 20 percent water utility rate increase is meant to help cover the remaining cost and operations of the PFAS removal facility.

While the Wisconsin Public Service Commission has approved the application, the City has not yet implemented the rate hike. The Eau Claire City Council plans to hold a public hearing on the increase on March 9th before voting on it.