Huntsville Utilities proposes 35% increase in water rates | Will Madison County Water Department Customers be Impacted? What Huntsville Utilities is proposing is no small increase. Water rates will go up 35 percent across the board - for residential, commercial and industrial consumers - if the city council gives its approval . The new rates would go into effect with the October billing cycle. Currently the monthy charge is $1.33 per 1,000 gallons for the first 3,000 gallons. After the rate hike, it would go up to $1.80 per 1,000 gallons for the first 3,000 gallons. The next 3,000 gallons, under the proposal, would cost $2.31 per 1,000 gallons - up from $1.71 per 1,000 gallons. Reference: www.al.com