MUSCATINE, Iowa — It’s official.

Muscatine Power and Water will raise its digital television and Internet rates in January 2010, and water rates will increase in April.

The Board of Water, Electric and Communications Trustees voted unanimously Tuesday evening to raise rates for both utilities. Trustee Joan Axel did not attend the meeting.

The Board also voted unanimously to approve the water, electric and communications utilities’ 2010 operating budgets, which included a slightly rosier picture than the proposed budget presented in October.

The utilities’ health care premiums will not increase in 2010, which results in roughly $700,000 in savings when combined with other cost-saving measures like less overtime.

MPW Digital TV will increase $1.49 per month to $19.99 per month for Basic service and $1.50 per month to $54.49 per month for Select service. Internet costs will increase $5 per month for customers who do not also subscribe to MPW Digital TV.

Rates may be going up, but so will the benefits to customers, said MPW Digital TV officials.

MPW Digital TV will complete its conversion to an all-digital service in January. Customers will get 43 new high definition channels and four new standard channels once the transition is complete.

“Transitioning to all digital will provide us with additional system capacity to be able to provide these enhanced services,” said Gary Wieskamp, director of utility relations. “It will also allow us to remain competitive with Direct TV and Dish Network, and bring the highest quality of television entertainment available to our customers.”

In mid-December Internet speeds will increase for all three MachLink Internet high speed services — Lite, Turbo and Mega. MachLink also began offering ESPN360 at no cost to subscribers earlier this month.

In 2010, the communications utility is now budgeted to lose $879,000.

In April, water rates will increase by 3 percent. The increase amounts to 43 cents per month for the average residential customer, MP&W general manager Sal LoBianco said.

The price increase will help offset rising costs for chemicals, labor and electricity, LoBianco said.

In 2010, the water utility is now budgeted to make $189,970.

The electric utility’s budget calls for a 4 percent rate increase in July 2010. It will be the first time MP&W has raised its electric rates since 2002.

The weak economy and resulting crash in  wholesale electric prices and sales have hit the  electric utility hard.

The utility is currently $7.1 million in the hole and is expected to lose $10.4 million by the end of this year. The 2009 budget had called for a $1.23 million profit.

Despite the rate increase, the electric utility is now budgeted to lose $7.48 million in 2010.

The Board of Trustees’ next meeting will be Dec. 22.