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Important Information About Our Rates
Important information about our rates
You may have questions about our new rates which were approved by the Connecticut Department of Public Utility Control (DPUC) on July 14, 2010. You can view all filings on Docket 09-12-11 on the DPUC Web site.
Here are some answers to frequently asked questions about the decision and what it means for customers:
When would the new rates go into effect?
How will this new rate affect my water bill?
How much does a typical single family homeowner currently pay for water service?
Why are there different rates for systems of Connecticut Water?
What happens to the WICA charge?
Were any changes made to seasonal rates?
Why does my bill have two basic service and water use charges?
Why did Connecticut Water seek a rate increase at this time?
What did the company do to protect customers in these difficult economic times?
Does the company provide assistance programs for customers with financial hardships?
When are requests for rate increases made?
What investments and improvements has the company made since its last rate decision in 2007?
Does the company have water conservation programs?
What steps can I take to lower my water bill?
Who can I contact for more information?
When would the new rates go into effect?
New rates are for services rendered on or after July 14, 2010. In the initial billing cycle as the new rates are implemented, your bill will include a portion under the old rate and a portion under the new rate.
For example, a quarterly residential customer with a water bill that covers the 90 day period through July 24, 2010, will be billed at the previous rate for water service provided before July 14, and the new rate for service for the remaining number of days in the billing cycle. You will receive a bill insert that explains your first bill under the new rate.
How will this new rate affect my water bill?
The decision will result in an increase of approximately $5.33 per month or less than 20 cents per day for a typical Connecticut Water residential customer who uses the company average of 15,000 gallons per quarter. The monthly increase for the acquired systems ranges from $3.36 to $6.36 per month depending on their existing rates.
The new rates for commercial, industrial and public authority customers are available on our Web Site under the CustomerInfo section of www.ctwater.com, or from a Customer Service Representative at 1-800-286-5700.
How much does a typical single family homeowner currently pay for water service?
It costs a typical Connecticut Water customer about $ 1.50 per day for all their water needs based on our new rates. For a typical Connecticut Water customer, using 15,000 gallons of water per quarter, it costs about $ 138.
Why are there different rates for systems of Connecticut Water?
As the company has acquired smaller systems such as Crystal, Gallup, Unionville, South Coventry, Birmingham Utilities, and Jensen’s Communities we have not substantially modified their rate structures. The rate increase is now being applied on a percentage basis to all of those systems, but their underlying rates differ from Connecticut Water Company’s rates. For a rate schedule that applies to your system please call a Customer Service representative at 1-800-286-5700.
What happens to the WICA charge?
The WICA is the Water Infrastructure Conservation Adjustment (WICA) that allows water companies to recover the costs of replacing aging infrastructure between general rate increases. The current charge of 2.10 percent is absorbed into the new rate. Any future WICA charges will be shown as a separate line on customers' bills as WICA eligible projects are completed and approved by the DPUC. The maximum amount allowed by law as WICA charges is 5% per year or 7.5% between general rate cases.
Were any changes made to seasonal rates?
Rates for our metered seasonal customers have been modified to reflect the same commodity charge as our year round customers. Rates for flat rate seasonal customers did not change in the decision, however, we will continue in our efforts to convert our seasonal flat rate customers to metered accounts where possible, so they can be billed for their actual usage rather than a flat rate.
Why does my bill have two basic service and water use charges?
Some customer bills will temporarily feature two lines for the basic service and water usage charges. The first basic service charge and water usage lines are at rates prior to July 14, 2010. The second lines are for new rates approved by the DPUC that went into effect on/after July 14, 2010. For a full explanation of the new rates, see your enclosed bill insert.
Why did Connecticut Water seek a rate increase at this time?
Connecticut Water recognizes these are historic and unprecedented economic times.
We have had a long-standing practice of avoiding rate applications unless absolutely necessary and would only pursue a rate increase when needed to maintain our commitment to the environment, operations, water quality and customer service, and to make capital investments to sustain our systems.
You may recall Connecticut Water issued a temporary $600,000 rate reduction that was in effect from July through December 2009. This was in response to our customers’ need for rate relief during these tough economic times. At the same time, we delayed the filing of our rate application by six months.
What did the company do to protect customers in these difficult economic times?
The company is well aware of the economic times and took a number of steps to reduce cost before filing for the rate increase. This includes lowering depreciation rates, making modifications to reduce costs of employee benefits, minimizing wage increases, renegotiating purchased water contracts, aggressively marketing our tanks and other facilities for antenna leases. We limited the request to what we believed was necessary to maintain our operations.
Does the company provide assistance programs for customers with financial hardships?
This rate decision includes approval to expand Connecticut Water’s H2O Help to Our Customers hardship assistance program, which was offered on a pilot basis in 2009 in five service towns. The program allows us to provide assistance by contributing towards amounts due on a payment arrangements for customers who are determined to be eligible for the assistance program. Eligibility is based on federal and state income guidelines with an additional provision for individuals with special circumstances or financial hardships that make it difficult for them to meet their obligations on a one-time basis and will help those customers who are most impacted by the economic downturn.
When are requests for rate increases made?
The company determines it is necessary to request a rate increase, based on an evaluation of operating income and expenses. A rate increase request may be due to an increase in operating expenses such as chemicals, energy, wages, benefits, taxes, maintenance costs, etc., or an increase in financing costs related to investment in utility facilities, or both. When this occurs, a fair rate of return can no longer be provided to the shareholders who have invested their savings in the company to provide the capital needed to finance facilities for the water system. An application for a rate increase with extensive supporting documentation would be submitted to the DPUC and reviewed in detail the Department. There are numerous opportunities for public input in the process and the Office of Consumer Counsel acts as an advocate for customers.
What investments and improvements has the company made since its last rate decision in 2007?
Connecticut Water has a strong record of environmental stewardship, is committed to providing world-class customer service and possesses a long history of regulatory compliance. In 2009, Connecticut Water’s overall customer satisfaction was rated at 89 percent by customers surveyed by an independent consultant. Since its last rate decision in 2007, the company has made significant investments in its infrastructure to maintain the integrity of its water distribution and treatment system and to ensure regulatory compliance. In addition, the company made a significant upgrade to its information technology system to raise customer service to a higher level.
Does the company have water conservation programs?
The company considers water conservation to be important and has seen the results of
our customers’ conservation practices. These conservation efforts are consistent with our efforts to protect water resources, achieve environmental goals, and delay or avoid the need to develop additional sources of supply. To assist us in promoting conservation, the company has recently joined the Alliance for Water Efficiency and become a partner in the United States Environmental Protection Agency’s (“EPA”) Water Sense Program.
What steps can I take to lower my water bill?
By using water wisely, you can reduce your water usage and save money at the same time. There are many things you can do to conserve water: fix leaking fixtures and toilets as soon as possible (a leaking faucet or toilet can dribble away thousands of gallons of water each year), run only full loads in dishwashers and washing machines, turn off the faucet while brushing your teeth or shaving, use automatic shut-off devices on irrigation systems and store a jug of ice water in the refrigerator for a cold drink rather than letting the tap run until the water gets cold. Follow this link to our Water Calculator and other water conservation tips.
Who can I contact for more information?
Questions about Connecticut Water's rates or any company issue can be sent to publicaffairs@ctwater.com, or call us at 1-800-428-3985, ext. 3014.
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