Lansing Board of Water & Light customers would see their combined electric and water bills rise $3.31 a month under a rate proposal the utility's board is set to vote on Tuesday, Aug. 11.

The increase, the smallest in at least three years, would take effect Oct. 1 if approved at the special meeting called by BWL Board Chairperson David Price. The meeting begins at 5:30 p.m. at BWL's REO Town Depot headquarters, 1203 S. Washington Ave.

Residents can address the board at the start of the meeting, with each speaker given three minutes. A second public comment period is held before adjournment.

What the rates look like

The proposed increases break down by service: electric rates would rise 2.04%, water 2.30%, steam 5.51% and chilled water would stay flat, according to BWL's public hearing packet.

For a typical residential customer using 500 kilowatt-hours of electricity and 5 CCF of water per month, the combined bill would go from $150.97 to $154.28. The electric portion accounts for $2.16 of that increase; water adds $1.15.

That's a sharp drop from the past two years.

The board approved combined residential increases of $10.95 in fiscal year 2025 and $10.78 in FY2026 at a special meeting on Aug. 27, 2024, in a 5-1 vote with Commissioner Dale Schrader casting the lone no. Those larger hikes followed a 31-month rate freeze BWL held during the COVID-19 pandemic.

What's driving the cost

BWL's Lansing Energy Tomorrow program, a $176 million suite of six electric reliability projects, accounts for much of the spending. The projects, which include new substations and a 138 kV transmission line, are expected to improve reliability for more than 25,000 customers. About $80.5 million in costs remain.

The utility has also invested roughly $5.36 million in cybersecurity, split among $3 million for operational network hardening, $360,000 for federal NERC-CIP compliance and $2 million for corporate system modernization.

How it compares statewide

General Manager Dick Peffley told commissioners at a May 7 Committee of the Whole meeting that BWL's proposed 2% electric increase is well below the roughly 5% or higher increases other Michigan utilities are seeking, with some approaching 10%.

Peffley also told commissioners in May that the 2024 and 2025 recovery increases had been difficult for customers but that BWL's long-term rate strategy has historically remained below inflation. BWL data shows its residential electric rates are projected to sit 44% below inflation in 2027.

Steam transition

The 5.51% steam increase is the steepest of the four services. Peffley told commissioners in May that rates remain elevated because BWL is running both its legacy steam system and the newer hot water system simultaneously during a transition period. About 160 customers remain on steam; roughly 100 are expected to move to hot water service, while approximately 58 will be disconnected due to location or building constraints.

BWL is offering a Steam-to-Electric Rate Transition Credit for qualifying disconnected customers, providing electric rate credits for up to 10 years.

How to participate

The special meeting agenda and full packet are posted at lbwl.com/about-bwl/governance. Customers who need help with past-due bills can attend BWL's next Community Resource Fair on Wednesday, Oct. 21 at Gier Community Center.