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Businesses say new tiered water rates have driven bills up 50%–80%; Select Board weighs incentives and phase-in
Summary
Local business owners told the Select Board that a recently implemented tiered water-rate structure sharply increased their bills — one reported a roughly $7,000 jump year-over-year — and urged the town to consider commercial tiers or a phase-in. The board discussed an incentive program to meter multi-family units and agreed to further review business impacts.
Kate Taylor, manager at the Monadnock Country Club, told the Peterborough Select Board on Jan. 13 that recent changes to the town’s tiered water rates have been “unintentionally harming certain businesses.” Taylor said she contacted roughly six businesses; several reported utility bill increases of between 50% and 80%, and Taylor said her club’s fourth-quarter bill rose roughly $7,000 from the prior year, making her reconsider renewing her lease.
“Harris Welden, who represents The Pearl Restaurant and Bantam Grill, provided charts showing increases of about 70% for both restaurants and stressed that ‘water use is not optional for restaurants,’” said Taylor and Welden during the appointment. Welden also noted that cross-town rate comparisons are complicated because Peterborough bills by cubic foot while others use gallons.
Town Administrator Nicole MacStay told the board the tiered rates were implemented at the start of the town fiscal year and that the consultants’ model projected long-term needs; she said the town did not anticipate drought conditions. MacStay also said that without the tiered structure, the same revenue requirement would have required an across-the-board increase of about 82.5% under the old rate structure.
Board members discussed possible remedies. Select Board member Bonnie Tucker said she wants to support local businesses and highlighted the Cold Stone Spring Well bond payments as a driver of the recent rate increases, noting the need to balance conservation goals with affordability. Chair Tyler Ward said the tiered system is new and recommended giving it time while collecting feedback. Mr. Bill Kennedy, who serves on the Economic Development Authority, invited Taylor to attend the next EDA meeting to ensure business perspectives are considered.
The board also discussed a proposed Water Meter Incentive Program that would encourage multi-family buildings to install individual unit meters and would waive permit and meter-installation costs. Utilities Superintendent Nate Brown confirmed the Utility Department could administer the program. MacStay estimated up to 800 units could participate; full uptake would cost an estimated maximum of about $200,000 split equally between the town’s water and wastewater funds. The draft program also contemplates permitting extensions on a case-by-case basis for complicated properties and preserving rebate eligibility for applicants already preapproved.
The meeting record shows no final policy decision on rate structure or a commercial tier; board members asked staff to return with additional analysis including quantified comparisons and suggested forming or leveraging an existing committee to review business impacts before any further changes.
What’s next: staff will follow up with more detailed financial comparisons and the Economic Development Authority will be invited to engage with affected businesses before the Select Board considers formal changes.
