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2019 Rate Increases Granted as Interim and Refundable

Post Date:02/04/2019 9:36 am

February 4, 2019

2019 Rate Increases Granted as Interim and Refundable

 

Anchorage Water & Wastewater Utility (AWWU) proposed across-the-board rate increases of 7 percent for water service and 9.5 percent for wastewater service effective February 1, 2019.  The Regulatory Commission of Alaska (RCA) granted AWWU’s rate increases on an interim and refundable basis and suspended the matter for further investigation.  AWWU will place revenues received from these interim and refundable rates in escrow until a final decision on rates is issued by the RCA.

The new rates for single-family residential customers would be an approximate increase of $3.59 per month for water services and $4.28 per month for wastewater services.  Combined, the average rate increase for both utilities will be approximately 8.2 percent over the 2018 rates.

The rate increases are based on the results of a 2017 Test Year Revenue Requirement Study, including 2017 operating expenses and capital costs associated with water and wastewater infrastructure serving existing customers.  The main drivers of the proposed rate increases are: increases in capital costs related to updated depreciation rates that more appropriately reflect the useful lives of AWWU’s infrastructure; increases in operating costs, including labor and benefit expense; increases in General & Administrative expense, primarily related to the implementation of SAP by the Municipality of Anchorage; and, increases in the Municipal Utility Service Assessment (MUSA) payment in lieu of tax, known as ‘MUSA’, resulting from new infrastructure put in place to serve customers. 

AWWU’s 2019 Rate Request Filing is located on the RCA’s website under Matter Number: U-19-005 and U-19-006.   

Changes to the most common monthly rates are:

Water Utility Rates

2018 Final

2019 Interim

Customer Charge

$13.54

$14.49

Flat Residential Usage Charge per unit

$37.65

$40.29

Metered Volume Rate per 1,000 gallons

$5.23

$5.60

  

Wastewater Utility Rates

2018 Final

2019 Interim

Customer Charge

$8.60

$9.42

Flat Residential Usage Charge per unit

$36.42

$39.88

Metered Volume Rate per 1,000 gallons:

$5.01

$5.49

Residential

$5.70

$6.24

Commercial Low Strength

$5.01

$5.49

Commercial Medium Strength

$6.65

$7.28

Commercial High Strength

$7.77

$8.51

                                                                                                                                                                                                 

 Visit us on www.awwu.biz.  We are also on Facebook and Twitter.

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For more information:

Sandy Baker, Public Outreach Officer ……………………………………………….786-5636