Local utility customers may see rates go up in early May.

Members of the Fayetteville Public Works Commission on Wednesday were told that rate increases of $13 to $16 monthly for electric, water and sewer service may be necessary.

A public hearing on the potential new rates will be held during PWC’s next meeting on Feb. 22.

If adopted, PWC spokeswoman Carolyn Justice-Hiinson said, the new rates would go into effect on May 1.

Justice-Hinson, said utility rates “are driven by the cost of supplying safe, reliable utility services. Inflation, supply chain, capital investments and required reserves are current key factors that are driving the need for rate increases.

Without the increases, she said by email, “reliability, rehab and replacement projects, planning for growth and preparation for new environmental regulations will be delayed.”

PWC is now preparing its fiscal 2024 budget. The utility is projecting it will need an additional $34 million in revenue.

PWC uses its rate stabilization fund to avoid significant rate increases, Justice-Hinson said. The utility expects to use nearly $27 million of that fund next year, but that will not cover expected expenses, PWC said.

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PWC received a $4.9 million American Rescue Plan Act grant that will go toward a wastewater rehabilitation project.

The utility continues to pursue other recovery funding, she added.

PWC’s last electric rate change was a 4.3% decrease, she noted, and those rates were anticipated to stay in effect until at least 2024. But economic factors have changed, and the rate increases have been recommended by the PWC staff to meet long-term capital and operational needs, she said.

PWC collects a utility line relocation rider to ensure adequate funding for three large N.C. Department of Transportation projects on Raeford Road, Ramsey Street and Camden Road.

Initially, those projects were estimated to cost $60 million. Current estimates are that they will come in at $130 million.

The water utility line relocation fee would rise from $2 to $4 for residential customers and from $1 to $2 for wastewater customers, according to the rate plan.

Michael Futch covers Fayetteville and education for CityView. He can be reached at mfutch@cityviewnc.com.