The Shelby Sanitary District #2 was overdue for a water rate increase to adequately cover operating expenses and new capital expenses.  The District applied to the Public Services Commission (PSC) in July 2020 to increase water rates.  The previous application to the PSC for a conventional rate increase had been in 2011, creating a 10-year span with no major increase.   The rates were adjusted for inflation in year 2016 and 2017. 


On March 11, 2021, the PSC approved a two-step rate increase. Step 1 is necessary to get the revenue caught up with operational expenses and will be effective for the 2nd quarter of 2021.  Step II is tied to debt for a new well located in Arbor Hills.  The new well is one piece of a Master Plan to expand fire protection and municipal water service to additional areas in Sanitary District #2.  The Step II rate will be implemented once the current well project is complete, estimated to be 1st quarter of 2022.  See the final PSC order at the following link:


Public Service Commission Final Decision Order on the application of Town of Shelby Sanitary District #2 for approval to increase water rates.

Document ID: 406621

Although this increase is significant, it is still within the range of other communities.  Please see the attachment below for a comparison.

Community Comparison

See the Water Master Plan at the following link:

Water Master Plan