Rate hikes in Norwich:

Norwich utility commissioners approved a 12.3% sewer rate increase Tuesday, but also voted to phase in a 22% water rate increase.

Norwich — Utility commissioners approved a 12.3 percent sewer rate increase Tuesday, but also voted to phase in a 22 percent water rate increase, starting with a nearly 10 percent increase in July and another 12.7 percent jump on Jan. 1.

The Board of Public Utilities Commissioners approved budgets for all four divisions of Norwich Public Utilities Tuesday, a combined total of $92.7 million, including the water and sewer rate hikes, a 4.3 percent drop in electric rates and natural gas rates that remain stable from this year’s rate.

Board member Larry Goldman cast the lone dissenting votes on the rate increases.

The board heard strong opposition to the rate hikes during a public hearing in April, and resident David Burley repeated a plea to the commission for stronger financial oversight of NPU administration and to lower the rates and budget expenditures.

Burley said the new 12.3 percent sewer rate increase, in addition to several other increases in recent years, amounts to a doubling of the sewer rate over the past seven years.

“Norwich Public Utilities is a monopoly that is supposed to be regulated by you folks,” Burley said. “You, the NPU commissioners, are all the ratepayers have to stop these rate increases.”

NPU General Manager John Bilda said the alternative water rate structure called for delaying payments to the state for Clean Water Act loans until January, allowing the rate increase to be divided into two phases.

The first would start July 1, and the second will kick in Jan. 1.

The total rate hike is 1 percent lower than the originally proposed 23.3 percent increase.

The proposed $9.2 million water budget would mean a monthly bill increase in January of approximately $10.29 for what NPU officials called a typical residential customer.

The sewer budget of $7.9 million would increase a typical residential customer’s monthly bill by $7.80.

Bilda said the sewer rate increase is necessary to cover part of the $60 million cost to separate antiquated combined sewer and storm drain systems still in place in sections of the city.

He said Norwich is one of four cities in Connecticut that still has combined sewers and storm drains, which causes overflows of raw sewage during heavy rains.

NPU also is planning a $100 million sewer plant upgrade.

About half of NPU’s total customer base receives all four utility services. Many customers, including the largest industrial users, will see an overall savings in their utility bills, Bilda said.

Goldman, however, in voting against the electric rate, said he believes NPU can do better.

He said currently, Norwich electric bills are about 6 percent lower than private investor-owned utilities, and will drop to 10 percent below those rates in July.

“I think we can do better than that,” Goldman said.