Moorhead's public utility is considering increasing the cost of water and electricity next year.
The utility proposes raising 2006 rates by 6.5 percent for electricity and 3.9 percent for water, General Manager Bill Schwandt said in a letter to customers.
The Moorhead Public Service Commission has scheduled a hearing on the proposed increases at 7 p.m. Tuesday in the City Council chambers at City Hall.
Under the proposed rates, a typical electricity customer would pay $62.90 per month next year, an increase of $4.90 from 2005, Schwandt said. A typical monthly water bill would rise 96 cents to $26.08.
The increased rates will help pay for expanding service to new residential areas and to bolster reserve funds.
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Higher electric rates will also offset the increased price of power produced by federal dams, which was caused by drought, Schwandt said.
Utility commissioners plan a final decision on the rate increases at their December meeting.
