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<< Previous   of   Next >>   ADVERTISEMENT   Hearing on water rates When: 6 p.m. Nov. 18, PUD Commission Meeting Room, 2320 California St., Everett. More info: 425-258-8611 or toll-free at 1-800-562-9142, ext. 8611. Proposed monthly water rates* 2009: $33.50 2010: $37.90 2011: $42.80 2012: $48.40 * Based on an average consumption of 1,000 cubic feet per month.   CONTACT THE HERALD Robert Frank, City Editor frank@heraldnet.com   Published: Monday, November 10, 2008 PUD customers may see water rates climb for 4 years By David Chircop Herald Writer EVERETT -- Households in northern and eastern Snohomish County could see their monthly water bills grow by nearly 64 percent over the next four years. Snohomish County PUD is considering a hike in water rates that would increase the average residential water bill from $29.60 a month now to $48.40 starting in 2012. Under the proposal, a typical monthly PUD water bill would grow about $4.70 every year. If approved, the increase would add $800,000 to PUD's budget next year. The proposal is driven by several factors, including a pending hike in the wholesale water rate charged by the city of Everett, which supplies most of the PUD's water, said the utility's spokesman, Neil Neroutsos. Starting in January, Everett will increase rates for its wholesale water customers by 8 percent every year until 2012. The PUD's water division serves about 20,000 customers around Lake Stevens, Granite Falls, Lake Roesiger and pockets throughout the county. Increased revenue would also help pay for a new 3 million gallon steel reservoir south of Frontier Village on Highway 9 in Lake Stevens, a water main extension project near Granite Falls and the expansion of the PUD's operations facility in Lake Stevens. The PUD Board of Commissioners is scheduled to consider the increase at its regular meeting Nov. 18. If passed, new rates would take effect Jan. 1. Here are some other questions about the proposal that Neroutsos addressed: Q: Why consider a rate increase? A: There are several reasons. First, the cost of wholesale water that the PUD purchases from the city of Everett has increased 38 percent since 2001. The PUD purchases 98 percent of its water supply from the city. The city plans additional rate increases of 8 percent every year from 2009 to 2012. In addition, material and construction costs also have increased dramatically. Asphalt and copper costs, for example, have more than tripled in the past five years. Construction costs for pipe, hydrants and meters have increased nearly 40 percent in the past five years and steel reservoirs cost 95 percent more than in 2004. The PUD must make considerable capital investments in the coming years to replace aging infrastructure, add storage and build an operations-warehouse facility to keep pace with growth in Snohomish County. Q: How does the PUD determine the level of rate increase? A: The utility projects next year's budget needs -- and also forecasts five years out -- in terms of wholesale water expenses, system maintenance, construction and materials. Historical financial information also is a key part of the budgeting process. Q: What's the purpose of staggering the rate increases? A: Our customers have repeatedly told us that they prefer smaller rate increases over several years than one large rate increase all at once. It helps both the utility and its customers better plan budgets and finances. Q: Do existing customers pay to expand the system for new customers? A: No. A new customer must pay about $8,000 per home in fees to connect to the existing system. A residential developer pays similar fees, depending in part upon the location, the need for a new main and any related expansion required to provide the new service. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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