Caribou Utilities District proposes water rate increase to keep up with inflation

1 month ago

CARIBOU, Maine – The Caribou Utilities District has proposed a slight yearly increase to their water rates to avoid giving customers large rate hikes in the coming years.

Maine Public Utilities Commission will soon review and vote on a suggested 1.48-percent increase in overall water rates for Caribou customers. 

That would result in a 1.37-percent increase for residential customers, 1.69 percent for commercial, 2.29 percent for industrial, 1.42 percent for government agencies, 1.54 percent for fire hydrants fees that the city pays and 1.56 percent for non-public entities with sprinklers connected to their property’s water system.

The average customer in Caribou would see their monthly water bill increase by less than one dollar per month, said Caribou Utilities District General Manager Jon Helstrom.

For example, the bill for a homeowner with a ⅜-inch meter would likely go from $22.30 per month to $22.50 per month for 300 cubic feet of usage. Customers with larger meters could expect higher incremental increases in their bills, Helstrom said.

Caribou Utilities District last implemented a water rate increase in 2022 when they upped rates by 6.1 percent in hopes of keeping pace with inflation-induced price hikes in fuel, heating oil and electricity.

To help utility districts raise revenues but not overwhelm customers, Maine PUC recently launched a new streamlined process that allows districts to raise water rates by no more than 1.5 percent total each year.

“We want to make things easier for customers by doing a small increase rather than a full-blown 20 to 25-percent increase,” Helstrom said.

A minor clerical error recently delayed Maine PUC’s vote on Caribou’s water rates, Helstrom said. The application previously had the incorrect percentage change for sprinkler fees but the issue was resolved in late September.

Helstrom told district board members Wednesday that PUC officials have not yet set a date for voting on the district’s proposed new rate. Once they do vote, the new rates would go into effect the following month.

“This [new streamlined process] is an option that districts have wanted for a while, so there could be a backlog [of requests],” Helstrom said.