Chehalis council adopts utility rate increases on second reading; first increases since 2012 will go into effect April 1

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Chehalis residents will pay higher rates for water, stormwater and wastewater services starting April 1 after the Chehalis City Council approved the increases by a vote of 6-1 on second reading during the council’s Monday, Feb. 24, meeting.

Councilor Kevin Carns was the lone opposition to the ordinances behind the increases, as was the case during the first reading at the council’s Feb. 10 meeting.

The increases mark the first time the city has raised the rates since 2012. The new rate increases will be steep and will continue to rise through 2029.

“During the (COVID) pandemic, we looked at raising rates at that time, and that was about the time the (Lewis County) PUD hit us with a pretty good increase. And, at that time, we felt that it wasn’t a good time,” Councilor Bob Spahr said. “There’s never a good time. But the time is past and we’ve gotta do it now.”

With inflation continuing to drive up the price of providing utilities, construction and maintenance, increases are needed in order to ensure the city can keep maintaining its utilities and providing customers with reliable service as Chehalis continues to grow, according to Chehalis Public Works Director Lance Bunker.

For water service, a customer using 7 centum cubic feet (CCF) — with one CCF equal to 100 cubic feet of water, or 748 gallons — will see their monthly bill rise from $36.54 to $44.22 in 2025, then to $53.53 in 2026, $64.78 in 2027, $69.31 in 2028 and $74.14 in 2029, according to the council’s agenda report.

For wastewater service, a customer using 7 CCF will see their monthly bill rise from $98.50 to $101.43 in 2025, to $104.48 in 2026, $107.58 in 2027, $110.80 in 2028 and $114.15 in 2029.

For stormwater service, a customer using 7 CCF will see their bimonthly bill rise from $9.45 to $10.96 in 2025, then to $12.71 in 2026, $14.74 in 2027, $16.95 in 2028 and $19.15 in 2029.

The recommended capital facilities charge increase included water going from $2,071 per equivalent residential unit (ERU) to $4,093, wastewater going from $3,030 per ERU to $5,103 and stormwater going from $489 per ERU to $1,342.



A capital facilities charge is a one-time fee paid by developers to cover the cost of hooking up new construction projects to city utilities. Additionally, new base rates will be established each year.

The utility rate increases were proposed following a study of the city’s current rates and capital facilities charges recently conducted by the FCS Group, Redmond-based public sector utility and finance consultants.

At the Feb. 10 Chehalis City Council meeting, Chehalis City Manager Stacy Denham said city staff will revisit rates beginning in 2028 and propose any possible future increases annually, as many other municipalities do, so future rate increases aren’t as steep.

In neighboring Centralia, utility rate increases are brought forward annually for approval by the Centralia City Council based on recommendations made by Centralia City Light using the U.S. Bureau of Labor Statistics Consumer Price Index.

For more information on the ordinances containing Chehalis’ water, stormwater and wastewater utility rate increases, go to pages nine through 24 of the council’s agenda report available on the city’s website at https://tinyurl.com/mv6vv4a.