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Commission recommends 5-year phase-in after sewer cost-of-service findings show multifamily subsidy
Summary
Utilities staff told the Environmental Services Commission that the city’s multifamily sewer rate structure is unintentionally subsidizing single-family and commercial customers; after discussion the Commission recommended a 5-year phase-in for correcting the inequity and gave staff guidance on four rate-design options.
Utilities staff presented results from a sewer cost-of-service study and proposed rate-design changes at the Environmental Services Commission’s Nov. 6 meeting, recommending a phased correction to what staff called an “unintentional subsidy” embedded in the city’s multifamily billing structure.
Matt Thurber, utilities, introduced the presentation and turned technical details to fiscal manager Matt Hobson, who explained that the multifamily class pays a bimonthly fixed charge that includes an 11-CCF flow allowance. "On average," Hobson said, "an apartment unit uses about 7.5 CCFs every 2 months, but that fixed charge assumes they're using 11," which drives a…
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