plants (wwtp)
TRANSCRIPT
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
7
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
16
17
Customers may also submit written comments [email protected]
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