For utility customers in the District, 2008 could bring a triple play of rate increases.
On the heels of rate hike applications from Pepco and Washington Gas, the D.C. Water and Sewer Authority is proposing to increase its charges by 7.5 percent for fiscal 2008, which starts Oct. 1 of this year, to meet the cost of skyrocketing debt service. If approved by the WASA board of directors in February, the average customer’s bill would increase from $48.66 to $52.08.
Through its adopted $2.2 billion, 10-year capital improvement plan — including a planned $300 million bond sale this spring — WASA has scheduled dozens of projects to reduce combined sewer overflow, replace sewer and water lines, abate lead and rehabilitate pumping stations. But the price of repaying bonds will soar by 34 percent in 2008, and on average 14 percent a year over the next decade.
“Service has substantially improved and continues to improve, hopefully on an annual basis,” said Jerry Johnson, WASA general manager. “A lot of the spending now really has to do with the disinvestment in the system, when for 10 years there were no rate increases, maintenance was lazy and many of our facilities went into a state of disrepair.”
Debt repayment and personnel costs account for about half of the agency’s proposed $341.2 million 2008 spending plan.
WASA expects to need nearly $500 million for its operation in 2015. The authority’s staff is suggesting an 8.5 percent rateincrease in 2009, 9.5 percent in 2010 and 2011, 9 percent in 2012 and 8.5 percent in 2013.
The District’s water and sewer rates, WASA claims, are “highly competitive” — higher than New York City, Baltimore and Nashville, but lower than Boston, Philadelphia and Atlanta.
Pepco’s 7.79 percent rate hike request, recently filed with the D.C. Public Service Commission, would take the average monthly electricity bill from $76.64 to $82.61. Washington Gas has asked for a 7.7 percent rate hike, which would raise the monthly bill by $8.47.
The average customer would pay about $18 more per month for gas, water, sewer and power with all three utility rate hikes in place.
At a glance
More on D.C. WASA:
» Operates 150-acre Blue Plains wastewater treatment plant.
» Delivers 135 million gallons of drinking water a day to 130,000 locations.
» Maintains 1,800 miles of sanitary and combined sewer and 1,300 miles of water pipes.
» Employs 1,200 people.
