BWL Board of Commissioners Approves Rate Increases

The Lansing Board of Water & Light (BWL) Board of Commissioners approved a one-year rate strategy at a Special Board Meeting this evening, Tuesday, August 11. The rate increases will go into effect on October 1, 2026, and will support investments to modernize the utility system, including replacing decades old water mains, building new substations, and strengthening operational and corporate cyber security protections. 

“I want to thank the Board of Commissioners for their consideration and approval tonight. We take this process very seriously and understand increases can be difficult, which is why we’ve worked to off-set costs for customers by securing $14.8 million in grant funding over the last two years and reducing our corporate operating budget by $7 million,” said BWL Chief Financial Officer Scott Taylor. “These increases are necessary to ensure we’re able to provide safe and reliable services, maintain and replace our aging infrastructure, and continue to support BWL’s clean energy goals.”

Rate increases for each utility will be as follows:

• Average Residential Electric Rate Increase: 2.1%
  • The monthly financial impact for an average 500 kWh usage customer will be $2.16
• Average Residential Water Rate Increase: 2.39-3.34% depending on usage
  • The monthly financial impact for a 2 CCF usage customer will be $0.88, and $1.15 for a 5 CCF usage customer
• Average Steam Rate Increase: 5.51% (mostly commercial customers)
• No increases were proposed for chilled water

The rate increases for 2026 will result in a Fiscal Year 2027 increase of $6.7 million for electric, $1.5 million for water and $800,000 for steam.

For customers who are struggling to pay their bills, the next BWL Community Resource Fair will be on Wednesday, October 21 from 3-6pm at the Gier Community Center, 2400 Hall St., Lansing. Learn more about the fair, ways to save money and energy, and additional information on rates on the Rate Info page.