Petersburg sewer rates to rise 20% as EPA bans mixing zone

The Petersburg Borough Assembly approved the first reading of an ordinance Monday that would raise sewer rates 20% in fiscal year 2027. The increase would add roughly $12 to the average residential customer's monthly bill.

The Environmental Protection Agency told the borough it can no longer use mixing zones in Frederick Sound to dilute wastewater. The agency now requires pretreatment and chlorine disinfection, followed by dechlorination before discharge. Borough Manager Steve said the changes will cost between $12 million and $15 million.

The borough received an $8 million federal earmark. Assembly Member George Martin said he toured the wastewater plant and found systems running on backup pumps with no further redundancy.

The ordinance passed 7-0 on first reading. It schedules 10% increases for fiscal years 2028 through 2030.

Borough Manager Steve said nine other Alaska communities face similar EPA mandates, including Wrangell, Ketchikan, and Anchorage. He said Anchorage's disinfection project was estimated at more than $2 billion two years ago.

Vice Mayor Stanton Gregor said he would vote yes despite disliking rate increases. He noted that the borough owes ratepayers a functioning wastewater system.

The ordinance will return for a second reading on June 1. If approved, the 20% increase takes effect July 1, 2026.