Rate Study Recommendations Implemented
March 25, 2008
To meet current and future environmental requirements as well as long-term costs for system expansion, Greenville Utilities Board of Commissioners approved adjustments in water/sewer rates at its March 25, 2008 meeting. The rate adjustments are effective May 1, 2008.
Combined, the water/sewer adjustments will add approximately $4.47/month to the typical residential water/sewer customer’s bill.
The increase in residential water rates will be about 4.4% or $1.00 for a typical residential customer using 6,000 gallons of water per month. This customer currently pays $22.49/month for water, and with the increase, the same customer will pay $23.49/month.
The increase in residential sewer rates will be about 14% or $3.47 for a typical residential customer using 6,000 gallons of water per month. This customer currently pays $24.72 for sewer, and with the increase, the same customer will pay $28.19/month.
“GUC’s water/sewer rates have not kept up with the increasing cost of providing services and long-term system capital needs,” said Ron Elks, GUC’s General Manager/CEO. “Increased prices of fuel, energy, supplies, materials and insurance have impacted our costs significantly. Stricter environmental regulations have also increased costs. Unfunded regulatory mandates have increased GUC’s water/wastewater treatment costs by $4.5 million/year."
The new rates are based on the results of an analysis of water/sewer rates and charges conducted by Raftelis Financial Consultants, Inc. Raftelis performed the previous rate analysis for the water/sewer funds in 1995. The most recent study compared the costs of service to existing rates and concluded that GUC should restructure rates to more equitably distribute the costs associated with supplying service. The analysis also determined that GUC’s water/sewer rates have fallen well below the median being charged by other systems.
GUC attempts to maintain water/sewer rates at, or near, the median rate of all other water/sewer systems in the region. Even with the water rate increase, the typical residential water bill still falls below the median of $22.95 calculated based on rates charged by 35 providers in North Carolina, including Bell Arthur, Wilson, Cary and Kinston. The typical residential GUC sewer bill is also below the median of $34.05, based on sewer rates charged by 24 NC providers, including High Point, Wilson, Fayetteville PWC and Rocky Mount
GUC is a community-owned utility, with not-for-profit operations. All rates/charges go right back into the utility system to provide safe, reliable services; maintain operations; and support the ongoing economic growth of Greenville-Pitt County. For complete water/sewer rate schedules, click here. If you have questions or would like further information, please contact GUC at 551-1551.