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Utility regulators reduce rate hikes for Superior residents

Superior utility sought rate hikes to pay for infrastructure upgrades and environmental cleanup

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A bank of electric meters
A bank of electric meters keep tabs on power usage at this Canton, Miss., apartment complex, Feb. 22, 2022. Rogelio V. Solis/AP Photo

Wisconsin utility regulators signed off on increases in electric, water and natural gas rates for Superior residents on Thursday.

The approved rate increases are smaller than what the utility was seeking.

Superior Water, Light and Power, a subsidiary of Duluth-based Allete, had asked the Public Service Commission to raise water rates by roughly 18 percent, natural gas rates by 17.1 percent and electric rates by 2.2 percent.

Preliminary figures from the commission show utility regulators approved a 14.6 percent increase for gas customers, a nearly 10.9 percent hike in water rates and a 1.3 percent increase in electric rates.

The Superior utility company had sought to raise around $7.3 million for  infrastructure upgrades and costs tied to cleanup of a former manufactured gas plant. The commission reduced that amount by nearly $2 million.

The commission also reduced the utility’s rate of return on profit to 9.8 percent. The Citizens Utility Board said that saved customers around $171,500.

Beginning in January, the average residential customer can expect to pay around $3.55 more on their monthly electric bill. Water customers will pay about $5.15 more each month, and gas customers will pay an extra $9.28 on their monthly bill.

The Superior utility serves around 15,000 electric customers, 13,000 natural gas customers and 10,000 water customers in the city and nearby areas of northwestern Wisconsin.

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