Proposed New Rates Reflect Need to Maintain Assets

Posted Tuesday, December 02, 2014

Water is essential to our daily lives, but few people stop to consider its value and importance, especially when compared to bottled water and other everyday products.

Skagit PUD’s water costs less than a penny per gallon—a true bargain considering the energy and expertise it takes to treat and deliver safe and reliable water to homes and businesses day in and day out.

In order to continue providing safe and reliable drinking water, while maintaining and replacing the PUD’s existing assets, a rate increase of 8 percent or $2.90 per month for the average residential customer has been proposed for 2015. The average residential customer’s bill is expected to be $83 in 2015, based on the average residential bimonthly consumption of 9,778 gallons in 2013.

The 2015 budget addresses the PUD’s needs and sets financial priorities based on those needs. A public hearing on the proposed 2015 budget was held on October 6.

Once the 2015 budget is adopted, it will be used to maintain accountability and to ensure that the PUD is following through on its planned funding. Anticipated water revenues of $18 million for 2015 are based on a projected 8 percent rate increase and a residential growth rate factor of 0.8 percent.

By resolution, the PUD has until the third week in December to adopt a budget for 2015. Any rate increase would be in effect for all bills generated January 1, 2015, and thereafter.