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Public Fire Protection (PFP)
Options for collection of PFP
The PSC has established a handful of mathematical formulas and theories that can be implemented to collect this special revenue requirement. Historically, Racine has collected PFP through a mill rate on the City tax rate. In the surrounding Villages PFP has been collected by a water rate surcharge of 25%. Yes that is correct, the Villages have paid a rate surcharge of 25% on volume billed since 1934. Switching the collection method to a direct charge accomplishes a number of things. It establishes rate neutrality among the retail customers of the Racine Water Utility. It also allows the City of Racine to reduce its mill rate and experience a one time tax rate reduction which is an advantage under the State of Wisconsin expenditure restraint program.
Table of PFP Direct Charges
| Meter Size | Quarterly | Monthly |
|---|---|---|
| 5/8 inch meter | $17.19 | $5.73 |
| ¾ inch meter | $17.19 | $5.73 |
| 1 inch meter | $42.90 | $14.30 |
| 1 ¼ inch meter | $63.60 | $21.20 |
| 1 ½ inch meter | $85.80 | $28.60 |
| 2 inch meter | $137.40 | $45.80 |
| 3 inch meter | $258.00 | $86.00 |
| 4 inch meter | $429.00 | $143.00 |
| 6 inch meter | $858.00 | $286.00 |
| 8 inch meter | $1,374.00 | $458.00 |
| 10 inch meter | $2,061.00 | $687.00 |
| 12 inch meter | $2,748.00 | $916.00 |
FAQs
PFP is a category to which the Wisconsin Public Service Commission (PSC) assigns certain regional assets for the utility to provide large volumes of water for a fire. This might includelarger-than-necessary water mains, increased size of pumps at booster stations, and larger volumes at water towers and tanks, as well as fire hydrants for firefighting.
The Wisconsin Public Service Commission (PSC) oversees 525 public water utilities in the State of Wisconsin. They review financials and set water rates for utilities such as the Racine Water Utility. The last water rate order was issued in 2017 and set a revenue requirement of $22,000,000. Of that amount, $3.2 million was allocated to Public Fire Protection (PFP) revenue.
The direct charge method varies with size of the water meter. The PSC establishes a rate table based up the water meter size used by each customer. Customers with a smaller meter pay a lesser charge. Customers with a larger meter pay a larger charge.
93% of the retail water customers have small meters of about 5/8 inch and ¾ inch diameter. The PSC has determined that the fee for these small meters would be set at $68.76 per year. This would be invoiced at $17.19 per quarter for retail residential customers.
There are about 35,000 customer accounts between Racine, Mt Pleasant, Sturtevant, Elmwood Park, North Bay and Somers.
