Budget Supports Financial Stability
GRU customers will see rate increases in the electric and wastewater systems in fiscal year 2024 to cover rising costs and to support the utility’s long-term plan to reduce debt and become more financially stable. New rates take effect Oct. 1, 2023.
*Standard Utility Benchmarks are common industry measurements that allow customers to more easily compare rates.
Rates will increase 3 percent for electric and 5 percent for wastewater. As a result of these rate changes, the average residential electric customer will see a $2.50 increase in their monthly bill and the average wastewater customer will see a $2.25 increase. Natural gas and water rates will not increase this year.
This year’s budget is heavily influenced by supply chain issues, aging infrastructure, skilled labor scarcity and inflationary pressures. GRU has seen costs skyrocket in several areas, including a 300 percent in certain chemicals necessary for treating water. The utility has worked to offset the impact of these pressures without hindering its ability to provide essential services.
The approved fiscal year 2024 rates also are a key component of GRU’s ambitious debt-reduction plan, which reduces net debt by $315 million over the next 10 years through a combination of rate increases, budget reductions and savings.
Overall, the FY2024 budget enables GRU to continue providing safe and reliable services to more than 200,000 residents, business and institutions while simultaneously addressing the utility’s high debt levels.