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Rate Increases OK’d On Interim Refundable Basis

Post Date:01/17/2018 3:22 pm

The Regulatory Commission of Alaska (RCA) approved Anchorage Water & Wastewater Utility’s 2018 across-the-board rate increases of 3 percent for water service and 2.5 percent for wastewater service on an interim refundable basis, effective Jan. 8. 

The interim rate increase will remain refundable to customers until a final determination on AWWU’s rates are made by the RCA. The interim and refundable rates for typical residential and commercial service are reflected below. For additional information please call AWWU Customer Service at 564-2700 or e-mail customerservice@awwu.biz.

For single-family residential customers, the new rates equal, approximately, an increase of $1.49 a month for a water, and $1.11 a month for a wastewater. Combined, the rate increase for both services will equal approximately 2.8 percent over 2017 rates.

The proposed rate increases are based on the results of 2016 Test Year Revenue Requirement Studies confirming Utility operating expenses. The main drivers of the proposed rates are increased capital expenses associated with new plant put in service since the last revenue requirement study, increased expenses for Municipal Utility Service Assessments (MUSA), utilities, and labor and benefits.

AWWU’s water rates were last increased in January 2014 using a 2012 Test Year Revenue Requirement Study. Wastewater rates were last increased in January 2017 using a 2015 Test Year Revenue Requirement Study.

Proposed changes to the most common monthly rates are:

 Water  2017 (Current)  2018 (Approved: Interim Refundable Basis)
 Customer Charge  $13.15  $13.54
 Flat Residential Service Charge  $36.55  $37.65
 Metered Rate Per 1,000 Gallons  $5.08  $5.23

 

 Wastewater  2017 (Current)  2018 (Approved: Interim Refundable Basis)
 Customer Charge  $8.52  $8.73
 Flat Residential Service Charge  $36.07  $36.97 
 Metered Rate Per 1,000 Gallons: Residential  $5.64  $5.78
 Metered Rate Per 1,000 Gallons: Commercial Low Strength  $4.96  $5.08
 Metered Rate Per 1,000 Gallons: Commercial Medium Strength  $6.59  $6.75
 Metered Rate Per 1,000 Gallons: Commercial High Strength  $7.69  $7.88