plants (wwtp)

2 Water Filtration Plants6 Wastewater Treatment

Plants (WWTP)3 Water Storage

Dam/Reservoirs60 Water Storage Tanks53 WWTP Pumping

Stations42,000+ Fire Hydrants17,000 Solar Panels0 Water Quality Violations

WSSC At A Glance

2

Providing water and wastewater services to 1.8 million people

475,000 customer accounts

Operate complex regional water and wastewater

systems

Aging Infrastructure

Sanitary Sewer Overflow

Consent Order

Potomac Consent Order

Large capital intensive programs

Almost $2.7B invested in

systems over last 5 years

$3.32B planned capital projects

over next 6 years

Significant fixed costs

$2.5 billion outstanding

debt

FY17 debt payments of

$261.4 million

33

4

Why Change?Examples and ImpactsBenefits of New Rate StructureConsiderations for Customer ImpactSchedule for Adoption

Maryland Public Service Commission (PSC) ordered WSSC to develop new reasonable rate structure

Current rate structure charges customers the highest rate for entire bill - back to first drop

Align rates with costs

5

PSC recently ordered WSSC to develop a new rate structure (Richard D. Boltuck v. WSSC)

WSSC’s current rate structure was deemed unreasonable by the PSC because it is unduly preferential to low-usage customers

PSC also found WSSC’s current rate structure is unreasonable because there is no cost of service study or other evidence to support it

6

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Under Existing Rate Structure:

95% of WSSC customers only pay for 74% of the water that they use

8

Tier 1Tier 2

Tier 3Tier 4

Tier 1Tier 2

Tier 3Tier 4

Up to Tier 16

ExistingAll volume billed at top ADC

range – back to 1st drop

Industry StandardBill volume within each ADC

range

Why Change?

9

While there are many options to choose from, the following two examples are responsive to the PSC order while keeping affordability to customers a priority

Your input and feedback will help the Bi-County Rate Structure Working Group make a recommendation to the WSSC General Manager/CEO and to WSSC Commissioners

Additional examples are available at: wsscwater.com/ratestudy

10

Example 14-Tiers Phased in to a Single Rate Based on Volume

Year 1 Year 2 Year 3

Tier 1: 0-99 gallons/day $10.62 $12.22 $14.23

Tier 2: 100-249 gallons/day $13.27 $13.44 $14.23

Tier 3: 250-8,999 gallons/day $17.00 $15.89 $14.23

Tier 4: 9,000+ gallons/day $19.12 $17.11 $14.23

Combined Water & Sewer Rate per 1,000 gallons

11

Example 14-Tiers Phased in to a Single Rate Based on Volume

Year 1 Year 2 Year 3

Tier 1: 0-99 gallons/day $10.62 $12.22 $14.23

Tier 2: 100-249 gallons/day $13.27 $13.44 $14.23

Tier 3: 250-8,999 gallons/day $17.00 $15.89 $14.23

Tier 4: 9,000+ gallons/day $19.12 $17.11 $14.23

Combined Water & Sewer Rate per 1,000 gallons

12

Example 24-Tiers Increasing Rate Based on Volume

Tier 1: 0-99 gallons/day $10.62

Tier 2: 100-249 gallons/day

$13.27

Tier 3: 250-8,999 gallons/day

$17.00

Tier 4: 9,000+ gallons/day $19.12

Combined Water & Sewer Rate per 1,000 gallons

13

Example 24-Tiers Increasing Rate Based on Volume

Tier 1: 0-99 gallons/day $10.62

Tier 2: 100-249 gallons/day

$13.27

Tier 3: 250-8,999 gallons/day

$17.00

Tier 4: 9,000+ gallons/day $19.12

Combined Water & Sewer Rate per 1,000 gallons

14

Benefits of New Rate Structure

More fairly allocate the cost of providing service among customers

Align rate structure to industry standard: customers charged for usage that falls within each tier, instead of to the highest rate for all water used

WSSC’s Existing 16-Tier Structure charges customers the highest rate for entire

bill - back to first drop

15

Keep it affordable (minimize “rate shock”)

Minimize impact on low-income and fixed-income households

Provide conservation incentive

Provide stable funding for continued infrastructure investment

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Customers may also submit written comments BudgetGroup@wsscwater.com

or 14501 Sweitzer Lane, Laurel, Md. 20707

Deadline is June 30, 2017

More info at wsscwater.com/ratestudy

Please fill out/drop off comment card