Gary to hold hearing on water rate increase June 16

Gary customers will get their next chance to confront the city’s water crisis at a public hearing on a proposed rate increase set for June 16 at 6 p.m. at Gary City Hall, 25 Smoke Eaters Drive. The ordinance would keep the city’s water system operating, but it would also make ratepayers cover the cost of a utility that officials say needs major repairs, relocation work and expansion.

Under the proposed schedule, a customer using 1,000 gallons a month would pay $19.31 before minimum charges, late fees or other costs. The notice also sets minimum monthly charges by meter size, from a 5/8-inch meter up through an 8-inch meter, and it includes a rate for water sold for resale. Late payments would carry a 10 percent penalty.

City officials say the higher revenue is needed because Gary’s water facilities are old, require maintenance, and face reliability problems. The notice says the city is seeking funding to support improvements and believes added income is necessary both for the upgrades themselves and for the ongoing cost of running the utility. The hearing is likely to test whether residents see a clear enough timeline, project list and performance standard to justify paying more.

The push for higher revenue comes after months of state scrutiny over Gary’s water system. The West Virginia Public Service Commission opened a case in August 2025 after complaints about water pollution, extreme water loss and boil-water-advisory conditions. State health officials cited high levels of iron, manganese, alkaline metals and other contamination sources, and the West Virginia Bureau for Public Health reported 76 percent unaccounted-for water loss.

At a March 19 PSC hearing in Welch, residents described discolored water and health concerns, including blisters after bathing and laundry that turned yellow, orange or black. Testimony from engineers and officials said leaks were wasting roughly 94 percent of treated water, some tanks were about 60 years old and deteriorated beyond repair, and the system needs infrastructure for a secondary water source.

The city’s June notice also reflects a shift in who will run the system day to day. A March 13 filing said the McDowell County Public Service District would handle operations, maintenance, billing and repairs while city customers would continue paying city rates. The PSC approved an operations-and-maintenance agreement in April 2026.

Gary’s current rates were already set in earlier notices at $19.31 per 1,000 gallons, with meter minimums, a $250 connection fee, a $20 reconnection fee and a $50 deposit. A full renovation has been described as a long, expensive effort that could take up to a decade and cost millions of dollars. For Gary, the June 16 hearing is less a routine billing matter than a measure of whether the city can persuade customers that higher bills will buy a safer, more reliable system.