We understand that rate increases impact household budgets, and we're committed to being transparent about what the proposed changes are and why they're necessary for our future.
Why are Rates Changing
Like utilities across the country, the BWL is experiencing rising costs tied to inflation, aging infrastructure and the increasing cost to maintain reliable utility service. We're committed to investing in modernizing our system with things like replacing decades old water mains, building new substations that serve some of our most vulnerable customers, and strengthening our operational and corporate cyber security protections. At the same time, we also must comply with state mandated carbon reduction requirements and the transition to cleaner energy sources.
Monthly Impact to Customers
As part of the proposed changes, BWL would introduce seasonal summer and winter electric rate changes designed to better reflect differences in energy demand throughout the year. The charts below show estimated impacts to average residential customer bills under the proposed rates.
Customer Class | Current | Proposed | FY27 $ Change | FY27 % Change |
|---|---|---|---|---|
| Residential |
|
|
|
|
| 500 kWh | $102.90 | $105.06 | $2.16 | 2.10% |
| Small Commercial |
|
|
|
|
| 750 kWh | $160.83 | $162.55 | $1.72 | 1.07% |
| 1,500 kWh | $283.66 | $286.59 | $2.93 | 1.03% |
| Midsize Commercial |
|
|
|
|
| 2,500 kWh | $516.38 | $521.60 | $5.22 | 1.01% |
| 15,000 kWh | $9,489.89 | $9,521.18 | $31.29 | 0.33% |
| Large Commercial |
|
|
|
|
| 400,000 kWh | $54,941.43 | $56,002.47 | $1,061.04 | 1.93% |
| 650,000 kWh | $74,067.32 | $75,791.51 | $1,724.19 | 2.33% |
Customer Class | Current | Proposed | FY27 $ Change | FY27 % Change |
|---|---|---|---|---|
| Residential |
|
|
|
|
| 2 CCF (5/8" or 3/4" Meter) | $26.32 | $27.20 | $0.88 | 3.34% |
| 5 CCF (5/8" or 3/4" Meter) | $48.07 | $49.22 | $1.15 | 2.39% |
| General Service |
|
|
|
|
| 365 CCF (4" Meter) | $2,774.71 | $2,800.26 | $25.55 | 0.92% |
| Lawn Sprinkling Service |
|
|
|
|
| 15 CCF (5/8" or 3/4" Meter) | $110.75 | $112.60 | $1.85 | 1.67% |
| 15 CCF (2" Meter) | $115.18 | $117.78 | $2.60 | 2.26% |
| Customer Class | Current Monthly Bill | Proposed Monthly Bill 10/01/26 | FY27 $ Change | FY27 % Change |
|---|---|---|---|---|
| 20,000 lbs | $599.62 | $633.19 | $33.57 | 5.60% |
| 50,000 lbs | $1,465.23 | $1,546.16 | $80.93 | 5.52% |
| 200,000 lbs | $5,793.29 | $6,111.02 | $317.73 | 5.48% |
| 800,000 lbs | $23,961.12 | $25,279.24 | $1,318.12 | 5.50% |
| 1,000,000 lbs | $30,017.07 | $31,668.65 | $1,651.58 | 5.50% |
There are no proposed increases to the chilled water utility.
What We're Doing to Keep Costs Low
We recognize the impact rising costs have to our customers, and continue to work on the balance of reliability and affordability. Before proposing any rate changes, the BWL reduced the corporate operating budget by $7 million, prioritizing essential projects, and secured $14.4 million in grant funding over the last two years to help off-set rising costs to our customers.
Ways to Lower Your Utility Bill
If you're struggling to pay your bill or just looking for ways to reduce your costs, BWL offers many programs and resources to help.
Frequently Asked Questions
BWL rate changes are reviewed and approved by the Lansing Board of Water & Light Board of Commissioners during public meetings.
If approved, the new rates would take effect on October 1, 2026.
Rates are adjusted periodically to account for rising costs of materials, infrastructure investment and reliable service. These updates also help ensure the BWL can maintain and upgrade aging systems.
BWL residential electric rates are nearly 6% lower than its closest competitor and are expected to be 10% lower by January 2027.
Rate differences exist to align each customer class with their actual cost of providing service known as "cost of service." This ensures each rate reflects the costs associated with providing utilities to that group based on how and when service is used.
Customers can view their current rates on the BWL website at lbwl.com/services.
If the proposed rate strategy is not approved, the BWL would need to revisit how it covers rising costs for operations and infrastructure investments. This could impact planned system improvements that help keep service reliable and responsive to customer needs.