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PUC order cut proposed water rate; council hears how multiyear steps and CSO fee changes would affect bills
Summary
Staff described a four‑step PUC rate order effective March 1 (about 17.5% for typical residential customers) and presented scenarios including boosting the CSO fixed fee to better reflect stormwater costs; the council discussed how increases would fall on low‑use vs high‑use accounts.
Rob Schultz explained that the rate case approved by the PUC contains four steps intended to smooth future changes and reduce rate shock. “This particular case that just went in for March 1 has 4 steps to it. So it's good for 4 years,” he said.
Staff presented four scenarios: equal‑percent across the board; a larger CSO fixed‑fee increase (which helps low‑usage accounts pay a more representative share of fixed system costs); a shift that funds full stormwater costs separately; and a recommended middle path that blends CSO fixed‑fee adjustments with an across‑the‑board rate correction. Schultz cautioned that increasing the CSO fixed fee would hit the bottom 45% of very low‑use accounts hardest while shifting more to usage charges would burden high‑use customers.
Councilors asked whether the city could shift more burden to commercial users (for example, large hotels) and whether such changes would be legally defensible. Schultz said rate design must be tied to impact on the system and cannot be arbitrary; a consultant study (Raftelis) will model meter sizes and usage patterns to provide defensible, administrable options.
