How Much Will the Water Rate Hike Cost You?
The Bristol County Water Authority is scheduled to meet tomorrow night to vote on a proposed 12-percent increase for fiscal 2014.
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As the Bristol County Water Authority Board of Directors has brought their proposed rate hikes to the public over the past month, the key concern for customers is the additional cost they'll face.
The board is scheduled to meet tomorrow at 5:15 pm at the BCWA office in Warren, and is expected to vote on the proposed 28-percent increase over the next five years.
Here's a review of the facts and figures in the BCWA plan:
What are the proposed increases?
According to the BCWA proposal, water rates would go up 12 percent in fiscal 2014, then 4 percent in each of the next four years — a total of 28 percent.
See the table at the bottom of this article to see the year-to-year comparisons.
Why is BCWA seeking these increases?
Executive Director Pamela Marchand has said during recent public hearings that the agency will run out of operating funds in 2013 unless it raises more revenue through rate hikes.
During the Jan. 3 hearing at Warren Town Hall, Marchand explained that about 34 percent of the increase would pay for cleaning and updating the current system, with 17 percent covering expected increases in Providence Water costs and another 17 percent paying for three new staff positions.
What's the rush?
Several residents and town officials questioned the BCWA board about the timing of the planned increases, including public hearings held over the Christmas holiday and a potential approval in mid-winter.
Marchand explained during an interview before the Jan. 3 session that BCWA's fiscal year begins March 1, "so we need to have a budget in place by the end of January."
Approving the budget would then allow the agency to issue new bills for the upcoming fiscal year and start collecting revenue to cover its operations, Marchand said.
"For the rate increase, with our existing [billing] system, it takes about four weeks to get that set up, so we really have until the end of January, the latest, to get all of this in place," explained Marchand. "Any rate increase that is passed would become effective as of March 1 — that's when we would start billing them for that [additional] amount."
How soon will bills go up?
After the start of the fiscal year, Marchand explained that customers will get "mixed bills," meaning January and February would be billed at the current rate, while the increase would affect the March bill.
"So [customers] might receive one month under the new rate and two months of the old rate until you've passed three months down the line," added Marchand. "It won't be into full effect until we've gone through a full quarter."
How to determine your increase:
The following table includes information provided by Marchand at the Jan. 3, 2013 hearing in Warren.
|
Usage [cu. ft.] |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |
| Average | 1,500 | $102.15 | $114.41 | $124.09 | $129.89 | $135.10 | $141.40 |
| Increase | $4.09 | $3.23 | $1.93 | $1.74 | $2.10 | ||
| Lifeline-300 | 600 | $77.96 | $87.31 | $87.31 | $89.70 | $94.24 | $99.23 |
| Increase | $3.12 | $0 | $.80 | $1.51 | $1.66 |
Notes:
- According to Marchand, the agency plans to create a billing level called "Lifeline 300," provided primarily to elderly customers who typically use less water.
- Usage is measured per quarter.
- Increase in costs is shown per month; multiply by 3 to get increase per quarterly billing cycle.
Have your say: How much will the proposed rate hikes affect you? Based on your current consumption, how much more will you be paying?
Post your comments below.
In This article
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Bristol County Water Authority
450 Child St, Warren, RI -
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Warren Town Hall
514 Main St, Warren, RI
Gary Morse
6:21 am on Tuesday, January 8, 2013
If this rate increase were before the PUC, the information in the financials would be far more detailed. Further, the PUC would have a lot of hard questions that BCWA have yet to answer (e.g. why is there a "no layoff" clause when certain operations are being shut down).
In general, rate payers are suspicious as to whether or not the infrastructure will really benefit from the added revenue, or is this to perpetuate overpriced operations costs?
Mrs. B
12:54 pm on Tuesday, January 8, 2013
We're paying a awful lot for poor quality water. Why I say poor quality because most of BCWA customers buy bottle water every day in local grocery stores. Instead of looking for constant rate increases for poor quality water, maybe you should look at your budget. Obviously money is being spent poorly. Maybe the authority should take a 10% pay cut. The rest of the working public is working for less money thanks to Obama and his Tax plan. Join us in our misery BCWA. Suck it up like the rest of us.
Jack Baillargeron
1:17 pm on Tuesday, January 8, 2013
Most of my water is tinted, and taste awful, I have filter system in my fridge for ice makers that should last a year and I am lucky if the last 3 months at 60 bucks a pop. Under the sink I gave up since they lasted only a month or so.
My $3,000.00 dollar reverse Osmosis sink system which produce great water last 3 years before it was destroyed of its life span od 20 to 30 years with filters costing a $139 dollars every 6 months instead of 18 months to 2 years. Even longer in my house since only one person drinks water as I do not drink it at all or very very rarely.
Electricity for pressure pumps also makes for all of us that must have them (it is 2400 ratepayers most in bristol) pay more for are water than anywhere in the country I will bet. The eletric alone is anywhere from $500 to a $1,000 dollars per year depending on average usage ad number of people in the house.
One asked for a discount for those of us who are stuck with this problem. Answer was, well you should have tested the pressure before you moved here, and if we give you a discount we would have to give every one a discount.
The mentality of the BCWA has always been disgusting. Sorry so long ;-}
marina peterson
1:38 pm on Tuesday, January 8, 2013
I am confused by the rate chart provided in this article. We have been told that the rate increase requested was 12%, 4%, 4%, 4%, 4%, etc.
The chart above reflects a 12% increase in 2014, an 8.46% increase in 2015, a 4.67% increase in 2016, a 4.01% increase for 2017, and a 4.67% increase in 2018.
With a starting annual rate of 408.60, the rate in 2018 would be 565.60. This is a $156.88 increase over five years which is actually 38.3 percent by my calculation.
BEAR IN MIND that this rate increase takes effect THIS March (which is fiscal year 2014)!
This chart was provided by Ms. Marchand who appears to be math-challenged.
Please attend the BCWA meeting Wednesday (tomorrow) at 450 Child Street, beginning at 5:15pm.
It is my understanding that they will also be redoing the vote for legal counsel after it was brought up at the Warren meeting that the initial vote was done in violation of the open meeting laws.
Please see patch article at http://bristol-warren.patch.com/articles/will-bcwa-board-vote-again-on-lawyer
DownTown
1:52 pm on Tuesday, January 8, 2013
The whole thing is a scam. Bulldoze it into the Bay.
marina peterson
2:21 pm on Tuesday, January 8, 2013
Just spoke with Mark Champagne at BCWA about the chart. The explanation is that the OVERALL increase for BCWA will be 12/4/4/4/4 but the tiers will be changing in 2015. Therefore, if you use approximately 1500 gallons you would be paying a higher price and your true increase for the five years would be 38.3%. a straight, across-the-board increase only applies to the first year. Then the tiers change.
Thank you Mark for that explanation.
DownTown
4:29 pm on Tuesday, January 8, 2013
Remember that the BCWA has already stated that increased rates are due to people not using ENOUGH water.
So revenue is down but apparently they do not have ANY ability to lower costs. Lower water use though should at LEAST should mean lower bills from the PWSB.
Lies, lies, lies, ........................................................
Lets all meet at Taylor rental, drive bull dozers down 136 and push the BCWA into the Bay.
Jack Baillargeron
4:52 pm on Tuesday, January 8, 2013
No need Downtown, In the plan at the meeting they want to buy their own backhoe. Maybe a ratepayer would be allowed to use that?
Manifold Witness
4:42 pm on Tuesday, January 8, 2013
“2. Financial Report – M. Champagne noted that as of 6 months, revenues are at $5.68 million which is $232,000 over budget, and that Operating Expenses are under budget.”
(Excerpted from: MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS OF THE BRISTOL COUNTY WATER AUTHORITY, September 27, 2012)
http://sos.ri.gov/documents/publicinfo/omdocs/minutes/3883/2012/28371.pdf
Manifold Witness
5:18 pm on Tuesday, January 8, 2013
Now we know it’s an overall 38.3% increase - at 1500 cubic feet a quarter, with the new tiers. That’s a lot more than 28%.
Obviously, the ratepayers can't calculate from this chart the mysterious impact of new rate tiers at various utilization levels.
Many residential ratepayers use more than 1500 cubic feet per quarter.
Please, we need to see 2400 cubic feet per quarter (based on per capita utilization of around 50 gallons per person, 4 in the household). That’s about 18,250 gallons a quarter. This comports with the 73,000 gallons that the RI Water Resources Board uses in their Residential Rates survey for apples-to-apples comparisons. (Mrs. Marchand is the Chair of that Board.)
See the last page:
http://www.wrb.ri.gov/data_ratesurvey/Water_Rates_Survey_2010.pdf
Ratepayers need to see another chart before the hearing, please. We need “apples-to-apples” at a meaningful volume - not a relatively low volume QUARTERLY bill, and then a MONTHLY projected increase.
We need a chart that shows the impact of the tier adjustments at other utilization levels over time, the rate increases expressed as a stated percentage, and total annual projected bills.
One would think that BCWA must be able to show us this because they studied all of these projections to arrive at their desired rates and tiers, right?
What's the projected annualized bill each year at 73,000 gallons annually? Please show effective annual increase each year (dollars, percent).
DownTown
5:32 pm on Tuesday, January 8, 2013
Hard to believe the rates are that simple.
How much will RWU pay? They have to be the largest user.
Manifold Witness
6:57 pm on Tuesday, January 8, 2013
We sure do need more info, DownTown. Maybe all the questions will be addressed at the hearing on January 9, 2013. The Board must have the answers at-the-ready if they are going to vote on it tomorrow evening.