Rate Study Recommendations Implemented
June 15, 2007
To continue to provide safe, reliable drinking water and to meet future financial challenges and opportunities, Greenville Utilities’ water rates/charges will increase effective July 1, 2007. The increase in residential water rates will be about $2.98 for a typical residential customer using 6,000 gallons of water per month. This customer currently pays $19.51/month for water, and with the increase, the same customer will pay $22.49/month.
Adjustments are also being made in all water base facilities charges. The percentages of these adjustments vary by meter size and rate.
“GUC’s water 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 treatment costs by $1.7 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 rates at, or near, the median rate of all other water systems in the region. Even with the water rate increase, the typical water bill still falls below the median of $22.72 calculated based on rates charged by 28 providers in North Carolina, including Bell Arthur, Wilson, Cary and Kinston.
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 rate schedules, click here. If you have questions or would like further information, please contact GUC at 551-1551.