Water rates set to increase for PUD customers

Posted 4/28/21

Commissioners for the Jefferson County Public Utility District voted unanimously to increase water rates for residential customers in a move that will raise rates 55 percent over the course of the …

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Water rates set to increase for PUD customers

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Commissioners for the Jefferson County Public Utility District voted unanimously to increase water rates for residential customers in a move that will raise rates 55 percent over the course of the next four years beginning in June 2021.

PUD officials said the rate increases will help pay for required capital improvement, allowing for the water utility to become a financially sustainable utility.

“We have to have clean water. We have to have reliable water. So we have to have a sustainable budget and sustainable rates,” said Board Secretary Jeff Randall during the  PUD Board of Commissioners meeting April 20.

“Hopefully over time, everyone will understand and realize that we’re making progress towards having a more sustainable program,” Randall added.

The board held a public hearing on April 6 to take public comment on the proposed rates and charges for water services. Commissioners also received input from both staff and consultants.

The actual rates were determined by a study from FCS Group, a consultant group that the PUD has been working with since April 2020.

“We’ve had many discussions from FCS. These rates for 2021 are less than what we would normally do, but because of COVID and other items, we have scaled them back a little bit,” said General Manager Kevin Streett.

The rate increases will put the PUD in a position where they can move forward, Streett assured.

The 55 percent increase will raise basic charges depending on meter size.

Customers with a 5/8-inch meter can expect a basic charge increase of $9.96 over the next four years, from paying $32.65 in 2021 to paying $42.61 by 2024. Those with a 1-inch meter will see $78.16 as a basic charge in 2021 which will be $102.00 by 2024, an increase of $23.84 over the four-year period.

Customers with a 1.5-inch meter pay a basic charge of $152.75 in 2021, which will be a payment of $199.36 by 2024, a $46.61 increase.

Starting January 2022, PUD customers will be charged a monthly capital surcharge, the money from which will go toward capital projects.

The monthly surcharge will be $5 in 2022 and 2023 with an increase to $7 in 2024.

PUD’s Kala Point customers will also see a rise in rates, which will vary based on where they live in the Kala Point area. They will see the same monthly capital surcharge added to their bills starting in 2022.

Along with the same monthly surcharge, commercial customers will see rate increases, as well.

The increase in water rates will help the PUD with funding ongoing maintenance, operations and improvements to its water systems.

“We understand that this is going to be painful, but it’s going to be more painful the longer we wait,” said Board President Dan Toepper.