The village is moving forward with a formal rate case application to the Wisconsin Public Service Commission that would raise water utility base rates by 28%. While that number may raise eyebrows, the reasons behind it have been building for years.
The last conventional rate case for the village was filed in 2020, resulting in a 15.5% increase. Since then, water rates have barely moved — just a 3% inflationary adjustment in December 2025. Six years of inflation (particularly high inflation at that), aging infrastructure, and a major federal mandate have quietly piled up, and the 28% figure is largely the catch-up cost.
The Big Driver: Lead Service Line and Water Main Replacement.
The EPA now requires water systems across the country to replace all lead service lines by 2037. The village’s 2026-2031 Capital Improvement Plan includes replacing one mile of aging water main and associated lead service lines every year. That’s a significant, decade-long capital commitment and it’s a major factor in why rates will need to rise now and potentially again in the future. Projections already anticipate another significant conventional rate case around 2030.
The village side of the service line replacement (from the water main to the curb stop) will be paid for by the water utility through debt issuances. The private side, from the curb stop to the home, will be the homeowner’s responsibility, with costs estimated at roughly $8,000 per line – a separate line item from the rate approval mentioned above. There has been discussion of allowing residents to space out payments over a few years versus a one time special assessment payment.
For the average residential customer, the rate increase translates to roughly $91.74 more per year. Even after the increase, the village’s rates would sit in the middle of the pack compared to other Milwaukee County utilities, many of which are seeing similar impacts. Shorewood, similar in size and with a comparable historical infrastructure profile as Whitefish Bay, anticipates an increase of more than 50% on the average residential customer water utility bill over the next two years relative to 2025 bills.
The village plans to file the application by May, with new rates potentially in place by year’s end.
What do you think, Bay Neighbor?