Toledo utility officials defend eliminating winter sewer average; say reinstating it would raise rates by about $4 million

Director Stevens, Department of Public Utilities, told the Water Quality Committee on May 28 that the city removed the winter sewer average from the sewer rate model to make room for a new low-income discount and to align billing with actual monthly reads from recently installed advanced metering infrastructure (AMI).

The change matters because, Stevens said, reinstating a winter sewer average would reduce the utility's consumption revenue by about $4,000,000 and require a higher per-unit charge. "If a winter sewer average discount was applied, we would lose $4,000,000 of that $66,000,000 revenue," Stevens said. He presented consultant estimates showing the consumption charge set for 2025 at $5.841 per hundred cubic feet (CCF) would rise to about $6.277 per CCF if the winter averaging program were restored — an increase Stevens described as roughly 7.5 percent.

Why it matters: the department said sewer revenue must cover the costs of operating and maintaining the wastewater collection and treatment system, and that discounts must be offset so the utility can meet debt and capital obligations. Stevens told the committee the utility needs about $101,000,000 in annual revenue and currently collects roughly $35,000,000 from fixed…