Anchorage Assembly OKs 5% rate increase for city water utility

The Anchorage Assembly on Tuesday unanimously approved a proposed 5.13% hike in the city’s water utility rates for 2025. The city will now seek approval from the state commission that oversees public utilities, the Regulatory Commission of Alaska.

Rate increases for water and wastewater would go into effect in February if the regulatory commission approves the rate increase as currently proposed by the Anchorage Water and Wastewater Utility.

The municipal utility runs the systems that deliver water to and remove sewage from a majority of homes and businesses in Anchorage, except for those that use well water and septic systems.

The average single-family residential household with a combined monthly water and wastewater bill of $117.15 would pay an additional $6 month, or about $72 more per year, according to a memorandum. For commercial businesses using a large amount of water, such as laundromats, the increased rate would add about $64 more a month in utility costs, amounting to $768 a year, according to rate tables from AWWU.

Once the water utility files its request for a rate increase with the commission, the Regulatory Commission of Alaska will hold a 30-day public comment period before deciding. It should make a decision within 45 days of the filing, according to the memorandum.

Rising costs for labor and chemicals — along with increased regulation and permit renewals — are driving AWWU’s proposed rate increase, said Assembly member Zac Johnson, who chairs the Assembly’s Infrastructure, Enterprise and Utility Oversight Committee.

“Just as one example where costs are going up, for the main water treatment chemical we use, the cost increased 66%, so that is significant,” Johnson said.