City of Bloomington Utilities 2026 Water Rate Case Approved

~ Bloomington, IN- The City of Bloomington Utilities (CBU) has recently announced that they have received approval for an updated rate for their drinking water services. This decision was made by the Bloomington Common Council and Utilities Service Board in September 2025.

The new rates will support ongoing investments in Bloomington's drinking water infrastructure, including improvements to the treatment plant, replacement of water mains, and upgrades to ensure system reliability. This rate proposal was approved by both the Utilities Service Board and the Bloomington Common Council and will be the first increase in water rates since January 1, 2024.

According to CBU Director Katherine Zaiger, this update is necessary to address priority projects outlined in their Capital Improvement Plan. These projects include essential improvements at the Monroe Water Treatment Plant and throughout the distribution system. By investing in these critical infrastructure projects now, CBU can ensure that they can continue meeting the community's water needs both now and in the future.

The revenue generated from this rate increase will also allow CBU to continue making improvements at the Monroe Water Treatment Plant and support critical infrastructure projects throughout the distribution system. These planned investments include replacing aging water mains, upgrading pumping and storage facilities, improving treatment processes, and modernizing system controls and monitoring equipment.

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In addition to these improvements, additional funding will also go towards proactive maintenance and replacement of aging infrastructure. This will help improve reliability, reduce water loss, and maintain high-quality drinking water service for customers in Bloomington. The rate adjustment will also help cover increased operational costs, supply expenses, and regulatory requirements associated with operating and maintaining the utility system.

For residential customers served by a 3/4-inch meter using 3,000 gallons per month, their monthly water charges will increase from $26.06 to $29.78 beginning in August 2026. However, residential customer impacts may vary depending on their water usage and meter size.

It's important to note that these rate changes only apply to drinking water service and will not affect sewer or stormwater charges. Customers can find the full schedule of rates and charges on the CBU website or by visiting the Utilities Service Center at 600 E. Miller Drive. More information about the rate case can also be found on the CBU website.

With this updated rate, CBU is committed to providing reliable and high-quality drinking water service to the Bloomington community. By investing in critical infrastructure now, they are ensuring that they can continue meeting the growing water needs of their customers in the future.

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