Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Rates topic
No spam. Unsubscribe anytime.
SPU proposes lower-than-forecast water-rate path; council questions savings sources
Summary
Seattle Public Utilities proposed a 2027''29 water-rate schedule with 4.3% increases each year (average 3.4% over six years), noting market-driven savings and underspending; the UDP expansion adds about 1% to the 2027 water rate (~$0.50/month for residential customers).
Seattle Public Utilities presented a proposed water-rate schedule that covers 2027''29; SPU said the proposed path is below the rate forecast in the department's 2024 strategic business plan and would average 3.4% growth over six years, with 4.3% proposed in each of 2027, 2028 and 2029.
SPU noted investments captured in the rates: bringing Tolt water treatment in-house, transferring annual hydrant inspection work from the Seattle Fire Department to SPU, continued capital work on system longevity (including potential land purchase in the Tolt watershed) and a move toward advanced metering infrastructure. SPU said the UDP expansion adopted by the committee is estimated to add about 1% to the 2027 water rate, equivalent to roughly $0.50 per month for residential customers.
Council members asked how SPU reduced forecasted increases compared with its earlier strategic plan. SPU staff pointed to a combination of factors: a more favorable bidding market (SPU said the Bitter Lake Reservoir project's bid came in ~30% under estimate), underspending or scheduling changes that produced cash reserves, favorable bond-market outcomes and the ability to levelize costs across years.
Council members requested a peer comparison of other utilities' rate paths and asked SPU to provide clarifying memos on specific questions ahead of the committee's next meeting. The committee did not vote on the water-rate legislation at this meeting; staff said drainage/wastewater and solid-waste rate proposals will be brought in subsequent meetings.
