Great Lakes Water Authority customers — about 4 million people in Southeast Michigan — will notice somewhat higher water bills in the next few months, after its board voted to pass rate increases for the coming fiscal year.
The water authority provides wholesale water and sewer services to most Southeast Michigan communities. On Wednesday, its board approved an average 5.8% increase for water services, while raising sewer rates by just over 4% on average. That’s similar to increases approved last year, which is also when a decade-long 4% cap on rate hikes was lifted.
The vote came despite significant public opposition, with critics pointing out that many households — particularly the lowest-income ones — will struggle to afford growing water bills. But the water authority said it’s faced with a tricky balancing act: maintaining affordability while also dealing with aging infrastructure, rising costs, and other financial constraints.
“Budget and charge increases are never implemented lightly,” GLWA CEO Suzanne Coffey said in a statement. “However, our regional system is at an inflection point. Aging infrastructure is deteriorating faster than it can be replaced under the current funding model, while climate impacts and operational demands continue to rise."
“Our responsibility is striking the right balance; protecting affordability for the communities we serve while making the investments necessary to ensure long-term reliability, public health and system resilience.”
According to the Great Lakes Water Authority, 220 miles of pipe, or about a quarter of the regional water system, requires replacement or decommissioning, at a cost of around $1.2 billion. In the meantime, utility officials say that inflation is driving up operational costs, and lower interest rates mean that investment income has declined.
The rates the board ultimately approved were slightly lower than what had initially been proposed. Still, advocates and some local elected officials have pointed out that many households will find continual utility rate hikes increasingly hard to absorb.
