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Why a Rate Increase is Needed.
District staff completed a comprehensive evaluation of
future projects over the next ten-years along with
an estimation of operational costs which shows the need for water rate
increases. The District needs to maintain an aggressive level of pipeline
replacement to keep the loss of water through leaking pipes as low as
possible. The District is also needs to begin the planning and design of
projects to increase storage.
Pipeline Replacement at PID.
We need to maintain an aggressive level of pipeline
replacement to minimize the cost and occurrence of leaks in the system and
improve the amount of water lost to leaks. Even with the current pipeline
replacement efforts the water lost to leaks is on an upward trend,
exceeding 18.5%. The number of leaks each year is trending downward but
the cost to repair those leaks continues to rise. PID has replaced over
twenty miles of leaking steel pipe in the past ten years, but we still
face replacing the remaining 70 miles out of the system’s 170 mile
total. We maintain a leak database and select projects based on their leak
history, the potential cost of leak repairs, and the estimated amount of
lost water to leaks.
PID Water Supply Concerns
The minimum amount of water storage from our watershed
available to PID customers in a single year is about 7,300 acre-feet. This
is known as our Firm Yield. The current demand by PID customers is about
8,400 acre-feet. Even though the average water produced by our watershed
is above 12,000 acre-feet, PID customers will face significant cutbacks if
we experience a drought. A portion of the rate increase will fund the
study and engineering of increasing water supplies at Magalia Reservoir or
Paradise Lake. The District holds water rights to 18,300 acre-feet for
storage and it is important that the District continue progress toward the
construction of storage to use our water right.
District Money Saving Efforts
The District is continually working on savings and
efficiencies to minimize any needed rate increases. We are in the final
year of a three-year, $1.3 million grant from the Department of Water
Resources to replace leaking pipes that allowed us to accelerate our steel
pipe replacement efforts. We will continue to seek grant funding to assist
the District with funding Capital Projects.
The District agreed to a five-year contract with employees
that have allowed us to stabilize labor costs. This makes it possible to
estimate our costs confidently so that a multi year rate adjustment will
meet our needs.
We are using a temporary employment service for our
construction projects, so we are only paying these employees when the
weather allows us to produce at an effective staffing level. We have also
improved the method for replacing pipes that allow us to be more efficient
in our replacements. The District crews replaced grant-funded pipes
quickly enough that we were able to have the time to complete the South
Libby Project with District crews instead of contracting the pipeline
replacement project out at an estimated savings of $200,000.
The District is also using in house personnel to complete
the paving required after repairs and replacement projects. This has
provided for repairs being completed sooner, reducing the impacts to the
neighborhoods where we are working. We are able to complete the paving at
less than half the cost of contracting this work out.
At the treatment plant we have optimized our use of
chemicals and timing of our operations to minimize energy costs.
What will the increase cost me?
We have analyzed the impact to our customers and the
typical residential customer will experience about an $8.20 per billing or
$4.10 per month increase to their bill in the first year. The second year
is estimated at less than $3.22 per billing ($1.61/month) and about $3.30
per billing ($1.65) in the third year of the increase. The calculation is
based on a "B" rate customer with 40 units of use in a billing
cycle. Feel free to call the District for an estimate of how the increase
will affect your bill.
Can the District help minimize the impact of the increase?
For customers that regularly pay their bill on time, we
are establishing a new program that will allow you to pay your bill
monthly based on our analysis of your usage history. We will look at your
consumption over the past three years, estimate your annual charges based
on the new increase and allow you to pay an even monthly amount through
our direct debit program. For more information, please contact the
District Office.
back Rate
Increase Comparison
|
Here's A Look at PID's
Proposed Rate Increases and how it may affect your bill.
|
| Residential
Services - Billed Bi-Monthly |
| |
Old
Rates |
As
of Feb. 1, 2006 Billings |
Current
as
of
Jan. 1, 2007 Billings |
As
of Jan. 1 2008 Billings |
| Description
of Service Rate |
Service
Charge |
Quantity
Charge |
Service
Charge |
Quantity
Charge |
Service
Charge |
Quantity
Charge |
Service
Charge |
Quantity
Charge |
| RA
(low usage rate) |
34.00 |
0.54
ccf |
38.08 |
0.61
ccf |
39.61 |
0.64
ccf |
41.20 |
0.67
ccf |
| RB
(standard usage)* |
45.00 |
0.54
ccf |
50.40 |
0.61
ccf |
52.42 |
0.64
ccf |
54.52 |
0.67
ccf |
| Sealed
Meter (1/2 of RA) |
17.00 |
19.04 |
19.81 |
20.60 |
| *
Tier Usage Rate -The more you use, the more per ccf you pay |
0-70
$0.54 per ccf |
0-70
$0.61 per ccf |
0-70
$0.64 per ccf |
0-70
$0.67 per ccf |
| 71-150
$0.70 per ccf |
71-150
$0.79 per ccf |
71-150
$0.83 per ccf |
71-150
$0.87 per ccf |
| 151
& up $0.85 ccf |
151
& up $0.96 ccf |
151
& up $1.01 ccf |
151
& up $1.05 ccf |
| Multiple
Units - Billed Bi-Monthly |
| MFC
(low usage) |
29.50
edu |
0.54
ccf |
33.04
edu |
0.61
ccf |
34.37
edu |
0.64
ccf |
35.75
edu |
0.67
ccf |
| MFD
(standard usage)* |
34.50
edu |
0.54
ccf |
38.64
edu |
0.61
ccf |
40.19
edu |
0.64
ccf |
41.80
edu |
0.67
ccf |
| *
Tier Usage Rate -The more you use, the more per ccf you pay |
0-70
$0.54 per ccf |
0-70
$0.61 per ccf |
0-70
$0.64 per ccf |
0-70
$0.67 per ccf |
| 71-150
$0.70 per ccf |
71-150
$0.79 per ccf |
71-150
$0.83 per ccf |
71-150
$0.87 per ccf |
| 151
& up $0.85 ccf |
151
& up $0.96 ccf |
151
& up $1.01 ccf |
151
& up $1.05 ccf |
| Business
/ Commercial - Billed
Bi-Monthly |
| BA
(LAA) 5/8 & 3/4" |
34.00 |
0.54
ccf |
38.08 |
0.61
ccf |
39.61 |
0.64
ccf |
41.20 |
0.67
ccf |
| B1
(LA1) 5/8 & 3/4" * |
45.00 |
0.54
ccf |
50.40 |
0.61
ccf |
52.42 |
0.64
ccf |
54.52 |
0.67
ccf |
| B2
(LA2) 1" * |
75.14 |
0.54
ccf |
84.16 |
0.61
ccf |
87.53 |
0.64
ccf |
91.04 |
0.67
ccf |
| B3
(LA3) 1-1/2" * |
149.84 |
0.54
ccf |
167.83 |
0.61
ccf |
174.55 |
0.64
ccf |
181.54 |
0.67
ccf |
| B4
(LA4) 2" * |
239.84 |
0.54
ccf |
268.63 |
0.61
ccf |
279.38 |
0.64
ccf |
290.58 |
0.67
ccf |
| B5
(LA5) 3" * |
450.00 |
0.54
ccf |
504.00 |
0.61
ccf |
524.16 |
0.64
ccf |
545.13 |
0.67
ccf |
| B6
(LA6) 4" * |
750.14 |
0.54
ccf |
840.16 |
0.61
ccf |
873.77 |
0.64
ccf |
908.73 |
0.67
ccf |
| *
Tier Usage Rate -The more you use, the more per ccf you pay |
0-70
$0.54 per ccf |
0-70
$0.61 per ccf |
0-70
$0.64 per ccf |
0-70
$0.67 per ccf |
| 71-150
$0.70 per ccf |
71-150
$0.79 per ccf |
71-150
$0.83 per ccf |
71-150
$0.87 per ccf |
| 151
& up $0.85 ccf |
151 & up $0.96 ccf |
151
& up $1.01 ccf |
151
& up $1.05 ccf |
| Residential
Care Facilities |
| RCF
Residential Care Facilities |
45.00
per calculated edu |
0.54
ccf |
50.40
per calculated edu |
0.61
ccf |
52.42
per calculated edu |
0.64
ccf |
54.52
per calculated edu |
0.67
ccf |
| Irrigation
Accounts - Billed Bi-Monthly |
| (I1/I2)
5/8" & 3/4" |
24.90 |
0.22
ccf |
27.89 |
0.25
ccf |
29.01 |
0.26
ccf |
30.17 |
0.27
ccf |
| (I3)
1" |
30.57 |
0.22
ccf |
34.24 |
0.25
ccf |
35.61 |
0.26
ccf |
37.04 |
0.27
ccf |
| (I4)
1-1/2" |
44.72 |
0.22
ccf |
50.09 |
0.25
ccf |
52.10 |
0.26
ccf |
54.19 |
0.27
ccf |
| (I5)
2" |
61.71 |
0.22
ccf |
69.12 |
0.25
ccf |
71.89 |
0.26
ccf |
74.77 |
0.27
ccf |
| (I6)
3" |
101.35 |
0.22
ccf |
113.52 |
0.25
ccf |
118.07 |
0.26
ccf |
122.80 |
0.27
ccf |
| (I7)
4" |
157.96 |
0.22
ccf |
176.92 |
0.25
ccf |
184.00 |
0.26
ccf |
191.36 |
0.27 ccf |
| (RI)
Residential/Irrigation |
28.62
(includes 53 ccf) |
0.22
after first 53 ccf |
32.33
(includes 53 ccf) |
0.25
after first 53 ccf |
33.92
(includes 53 ccf) |
0.26
after first 53 ccf |
35.51
(includes 53 ccf) |
0.27
after first 53 ccf |
| Proposed
Outdoor Recreation Rates - Billed Bi-Monthly |
| 5/8
& 3/4" ** |
No
Current Rate |
50.40 |
0.25
ccf |
52.42 |
0.26
ccf |
54.52 |
0.27
ccf |
| 1"
** |
84.16 |
0.25
ccf |
87.53 |
0.26
ccf |
91.04 |
0.27
ccf |
| 1-1/2"
** |
167.83 |
0.25
ccf |
174.55 |
0.26
ccf |
181.54 |
0.27
ccf |
| 2"
* |
268.63 |
0.25
ccf |
279.38 |
0.26
ccf |
290.56 |
0.27
ccf |
| 3"
** |
504.00 |
0.25
ccf |
524.16 |
0.26
ccf |
545.13 |
0.27
ccf |
| 4"
** |
840.16 |
0.25
ccf |
873.77 |
0.26
ccf |
908.72 |
0.27 ccf |
| **
Tier Usage Rate -The more you use, the more per ccf you pay |
up
to 1500 ccf $0.25 ccf |
up
to 1500 ccf $0.26 ccf |
up
to 1500 ccf $0.27 ccf |
| 1500-3000
ccf $ 0.43 ccf |
1500-3000
ccf $ 0.45 ccf |
1500-3000 ccf $ 0.48
ccf |
| Over
3000 ccf $0.61 ccf |
Over
3000 ccf $0.64 ccf |
Over 3000 ccf $0.67 ccf |
| Fire
Service Connection Charges - Billed Quarterly |
| (FS2)
2" |
30.00 |
0.85
ccf |
33.60 |
0.96
ccf |
34.95 |
1.01
ccf |
36.35 |
1.05
ccf |
| (FS4)
4" |
60.00 |
0.85
ccf |
67.20 |
0.96
ccf |
69.89 |
1.01
ccf |
72.69 |
1.05
ccf |
| (FS6)
6" |
90.00 |
0.85
ccf |
100.80 |
0.96
ccf |
104.84 |
1.01
ccf |
109.04 |
1.05
ccf |
| (FS8)
8" |
120.00 |
0.85
ccf |
134.40 |
0.96
ccf |
139.78 |
1.01
ccf |
145.38 |
1.05
ccf |
| Does
not include Town PFD currently $2.00 per active meter / $1.00 sealed meter |
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