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Rates & Fees

Understanding Rates & Fees

Madison Utilities operates as a public, not-for-profit utility. All revenue from customer payments goes directly toward maintaining, expanding, and improving the water and wastewater systems that serve the City of Madison and surrounding areas. Rates and fees are reviewed regularly to ensure fairness, sustainability, and continued investment in reliable infrastructure.

Our rate structure supports safe, high-quality water and dependable wastewater service while keeping costs as low as possible. Charges may vary by customer type, meter size, and usage level.

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View Rate Resolution Outlining All Rates and Fees
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  • Water Rates: Based on monthly usage and meter size.
  • Sewer Rates: Calculated using metered water consumption or fixed charges for unmetered accounts.
  • Connection Fees: Applied when establishing new service or additional meters.
  • Capacity & Availability Fees: Fund system expansion and long-term infrastructure improvements.
  • Deposits: Required for new customers; credited to your final bill upon account closure.

New Service or Construction Fees

Developers and contractors can review all construction-related fees, meter installation charges, and capacity assessments before beginning work.

  • Meter Set Fees – Cost of materials and installation for new meters.
  • Capacity Charges – Help fund plant upgrades and future capacity expansion.
  • Plan Review or Inspection Fees – Required for new development projects.
Learn More About Fees for New Developments

Frequently Asked Questions

How often are rates reviewed or updated?
Rates are evaluated periodically through professional rate studies to ensure adequate funding for operations and future infrastructure needs.
Do residential and commercial customers pay the same rates?
No. Rates vary by customer classification, meter size, and consumption level.
Why are capacity and availability fees charged?
These fees ensure new growth contributes to the cost of expanding the water and wastewater systems that serve the community.
How are water and wastewater rates calculated?
Water charges are based on a monthly base fee plus a usage charge per 1,000 gallons. Wastewater charges include a base fee and are calculated using metered water consumption or a flat rate for unmetered accounts.
Why do my water and sewer bills change from month to month?
Monthly bills reflect your actual water use. Higher seasonal use—such as irrigation in summer—will increase both water and wastewater charges.
What deposits are required for new service?
A deposit is required when new service is established. This deposit is applied to the account when the account is closed and any remaining credit is returned to the customer.
Are there any late payment or returned-item fees?
Yes. A 10 percent late fee applies to balances not paid by the due date, and returned items are subject to a $25 charge.