Connecting Dots

There is much confusion of late regarding the 2011 changes to water rate structure. Let’s sort that out.

 The City commissioned a utility rate study in 2009. It was the first of its kind for Spokane. The purpose was to create a business model for the city’s utilities: water, sewer and solid waste.

Over the course of this study, the City Council directed the consultant, HDR, to examine the impact of different water rate structures for two purposes: to create a rate to encourage conservation and to create a rate providing a “lifeline” to low-income residents. The consultant was also directed to create a rate structure that was revenue neutral. That means the income to the city’s water department would not change. Under this circumstance, there was no rate increase. The City Council adopted the new water rate structure in December, 2010. According to Water Department Director Frank Triplett, Spokane’s water rates remain among the lowest 15% of water rates among municipalities in the State of Washington.

What is the impact of the new rate structure? Everyone will pay less for water consumption under 18 units (13,500 gallons) per month. Everyone will pay more for water consumption over that amount. What this means is approximately 60% of Spokane residents will see their water bills decrease. For the other 40%, water bills will increase – unless they take measures to reduce their consumption –measures for which the City is giving credits and rebates.

How much of an increase will those 40% pay if they do not reduce their consumption? For the 22% of residents who use 19-45 units (14,000 to 33,660 gallons) the increase will average about $15 per month. For those consuming 50 units (37,400 gallons) the increase will average $20 per month. However these levels of consumption occur only during summer months as a result of outdoor irrigation. These consumers will see lower bills during the remainder of the year, somewhat offsetting their summer bills.

To determine how the new water rate structure will affect your water bill, use the City’s Utility Rate Calculator. If you would like to reduce your bill, use the Interactive Sprinkler Calculator to help optimize your watering time.

Perhaps you want to reduce your utility bill further? Here is one strategy.

What are the purposes of the new water rate structure? There are two:

• 2229 water customers had their water forcibly shut off in 2010. The lifeline rate affords customers least able to pay the prospect of avoiding a shut off. At a time when the Spokane community is focused on things such as reducing the high school dropout rate and keeping people in their homes, it is important to keep water affordable for this at-risk population.
• The water levels in the Spokane River have been dropping for the last one hundred years. The region’s sole-source aquifer and the river are interconnected – and rise and fall together. The aquifer demand forecast model indicates additional water demand of 32 billion gallons in the region, an increase of 41%, in the next thirty years.

The Washington Water Research Center at Washington State University conducted a study proposing a solution to falling river and aquifer levels. That solution is estimated to cost $90 million in today’s dollars to construct and $12-14 million per year to operate. Where will our water rates go if ratepayers have to finance that endeavor?

Taking conservation measures today looks brilliant by comparison.

On July 7, 2011 I hosted a Council Connection program that addresses many questions related to the restructured water rates for 2011. Click here and then on “City Council Connection” to find and view that broadcast on your computer.