Some utility rates for homes and businesses across Petersburg are going up as of July 1, 2025. That’s after Petersburg’s borough assembly approved the rate hikes in June.
Officials say the rate changes are necessary to keep up with the costs of much-needed maintenance projects and higher operating expenses. Customers will generally pay more for water, sewer and electricity.
Sewer rates are going up by 25% this year, which equates to about $12 more on the average home’s wastewater bill. That won’t be the end of the increases: the borough is set for an overall 65% increase in sewer rates over the next five years.
Public Works Director Chris Cotta said at an assembly meeting May 5 that the current rate increase is necessary to balance the budget and support immediate needs.
“We know we’ve got aging infrastructure that has to be dealt with,” Cotta said. “So this next series of rate increases is really more about supporting that stuff and supporting the testing requirements that are coming into play.”
A $10-12 million wastewater disinfection project slated for the Petersburg Borough in order to comply with state and federal regulations might require even larger rate increases unless the borough is able to obtain outside funding, like grants, for the project.
As for water, residents will see another 3% rate increase for utilities this year, in line with annual water rate hikes in recent years. That’s about a dollar more on a typical household’s monthly water bill. Water charges are planned to increase by 3% annually through June 2030.
The new electricity rates that take effect July 1 will raise average household power bills by about $5. However, the exact increase varies by the type of customer. A new rate model boosts the base charge customers pay, but it eliminates a higher per-kilowatt-hour rate for customers that don’t use much power. Utility Director Karl Hagerman said he hopes it simplifies bills and encourages conservation.
“People know right up front what they’re going to be paying for every kilowatt hour they use,” Hagerman explained at an assembly meeting on May 19. “And they can cut their power use and easily understand savings in their monthly bill.”
With the adjustment, some smaller, low-consumption businesses could possibly see lower bills. But overall, Hagerman said the new rates should bring in more revenue. Hagerman said electrical loads continue to increase a bit each year as more households turn to electrical appliances, which is part of why the department is turning its focus to conservation, instead of power sales, as providers work toward developing additional power generation.
While future rate increases are possible, they’re not yet set in stone. The new electric rate is just for this fiscal year. Hagerman said that’s because the department wants to see how this year’s change truly affects revenues.
