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Metro Detroit residents may see the largest water rate hike in a decade as the Great Lakes Water Authority (GLWA) proposes significant increases to drinking water and sewer rates for fiscal year 2026. According to a report from The Detroit News, the proposed hikes would raise wholesale water rates by 7.73% and sewer rates by 5.39%, exceeding the 4% cap that has been in place for the past 10 years and is set to expire this year.
GLWA officials cite rising material costs, deferred maintenance and necessary infrastructure improvements as reasons for the increase. However, local leaders and community advocates are pushing back, questioning the necessity and affordability of the hikes, especially amid ongoing economic struggles. The final decision will be made at a February 26 public hearing, where residents and officials can weigh in.
Here’s what you need to know about the proposed rate increases and their potential impact.
What kind of water rate hikes is GLWA proposing?
The Great Lakes Water Authority (GLWA) is considering increasing wholesale water rates by an average of 7.73% and sewer rates by 5.39% for the 2026 fiscal year, which begins July 1, 2025. If approved, this would be the highest increase in GLWA’s 10-year history.
Why are the water rate hikes being proposed?
GLWA officials say the increases are needed to cover deferred maintenance, capital improvements and corrosion control measures. Inflation and rising costs of materials such as steel, chlorine, and other chemicals have also contributed to the need for higher rates.
How do water utilities work in Southeast Michigan?
In Southeast Michigan, two primary agencies manage water services:
- Great Lakes Water Authority (GLWA): Manages the regional water and sewer systems across eight counties, providing drinking water to nearly 40% of Michigan residents and wastewater services to 30%.
- Detroit Water and Sewerage Department (DWSD): Owns and operates Detroit’s water and wastewater systems, leasing key infrastructure to GLWA under a 40-year agreement. DWSD bills Detroit residents for water services, while suburban communities pay GLWA through local municipal authorities.
GLWA sets wholesale rates for its 112 member communities, which then set their own rates for residents. Rates depend on factors like distance from the Detroit River or other water sources, elevation and local storage capacity. Because Detroit’s system was built to support a much larger population, maintenance costs are spread among fewer residents, leading to higher per-capita expenses.
How do these water rate hikes compare to previous increases?
GLWA had previously been bound by a 4% cap on rate increases, a limit that expires on June 30, 2025. Over the past nine years, annual rate adjustments averaged 2.9% for water and 1.7% for sewer. Last year, rates rose 3.25% for water and 3% for sewer. The proposed 7.73% increase far exceeds those past hikes.
Who will be affected?
GLWA provides water and sewer services to 112 communities across eight counties in Southeast Michigan, including Detroit, Oakland, Macomb, and Wayne counties. Local water authorities, such as the Southeastern Oakland County Water Authority (SOCWA), which serves Berkley, Southfield, and Royal Oak, have said they will likely pass these increases on to residents.
What do critics say?
Local leaders and advocates share their concerns with the Detroit News that the increases will burden residents already struggling with inflation and high utility costs.
- Eric Griffin, general manager of the Southeastern Oakland County Water Authority which services 11 cities in southeast Oakland County, called the proposed increase "significant" and said there needs to be more justification for a 7.73% hike.
- Demeeko Williams, founder of Hydrate Detroit, a water-relief nonprofit, argued that raising rates during economic struggles will harm low-income residents.
- Mayor Ken Siver of Southfield acknowledged that while infrastructure upgrades are necessary, higher water bills will be difficult for residents to absorb.
How will this impact residents’ water bills?
While GLWA sets wholesale rates for cities and townships, local governments determine how much they charge residents. Some communities may absorb part of the increase to soften the impact, while others will pass on the full rate hike. SOCWA has said it has no choice but to raise rates for its 13 member communities.
What infrastructure improvements is GLWA funding?
GLWA says the hikes are necessary to fund:
- Corrosion control measures: $6 million is allocated for orthophosphate programs to prevent lead contamination in communities with old pipes.
- Flood mitigation efforts: GLWA is co-funding a multiyear study with the U.S. Army Corps of Engineers to address flood risks.
- Aging infrastructure: Officials argue that past efforts to keep rate hikes low led to underfunded maintenance and delayed capital projects.
What assistance programs are available?
Metro Detroiters struggling with high water bills may qualify for the DWSD Lifeline Plan or the Water Residential Assistance Program (WRAP):
- DWSD Lifeline Plan (for Detroit residents only):
- Fixed monthly water bills as low as $18 based on income.
- Immediate erasure of past due balances upon enrollment.
- Shutoff protection for as long as participants remain enrolled.
- Up to 1,125 gallons of water per household member per month.
- Free water audits and minor plumbing repairs to reduce consumption.
- WRAP (for non-Detroit GLWA customers):
- Bill payment assistance up to $115 per month for 12 months, renewable if eligible.
- Up to $1,500 in past-due bill forgiveness.
- Water conservation services, including home water audits and minor plumbing repairs.
- Available to residential customers with income at or below 200% of the federal poverty level.
What happens next?
GLWA's Board of Directors will vote on the proposed rates at a public hearing on February 26, 2025, from 2:00 p.m. to 6:00 p.m. The meeting will be held in person at the Water Board Building (735 Randolph, 5th Floor Board Room, Detroit) and will also be accessible via Zoom.
- Zoom Meeting Link: Join here
- Meeting ID: 864 7166 7249
- Passcode: 297061
Dial-in (Toll-Free): 888-788-0099 / 877-853-5247
The public can provide input during the February 26 hearing, after which the GLWA board will vote on the proposed increases. If approved, the new rates will take effect on July 1, 2025.
This article first appeared on Planet Detroit and is republished here under a Creative Commons license.
