Drip…Drip…

Correspondent of the Day in the Times Dispatch: Water rates target smaller users Editor, Times-Dispatch: You ran two Op/Ed columns on Richmond’s water rates. The column by Gloria LeRose, “Water’s worth the cost and effort,” explains that the Department of Public Utilities (DPU) does a needed job protecting our water quality, and what it spends […]

June 20, 2012; 9:44 AM • by Oregon Hill

Correspondent of the Day in the Times Dispatch:

Water rates target smaller users

Editor, Times-Dispatch:

You ran two Op/Ed columns on Richmond’s water rates. The column by Gloria LeRose, “Water’s worth the cost and effort,” explains that the Department of Public Utilities (DPU) does a needed job protecting our water quality, and what it spends to do so is worth it.

An earlier column by Scott Burger, “City proposes outrageous water rates,” relates to the amount of service charge DPU has in its rate structure, which results in a lower volumetric charge, which in turn discourages conserving water.

While both of these are valid concerns, the main issue with a high service charge is the inequality of cost for small consumers. Someone using 3 to 5 ccfs (1 ccf = 100 cubic feet) of water per month ends up paying about 79 percent of his total bill for service charge, while someone using 100 ccfs per month pays only about 11 percent. The purpose of the service charge is to recover certain fixed costs and should be recovered proportionally based on the amount each consumer uses. Lowering the service charge requires increasing the volumetric rate to compensate for the reduced revenue. There would be no less money for the DPU. There would be no lost revenue.

I raised this issue in 2006 with the DPU after a study recommended reducing the service charge. At that time the DPU indicated it agreed the service charge was disproportionate to the small user and planned to gradually reduce it and increase the volumetric rates. The DPU needs to renew this plan.

Robert Bedell.

Richmond.

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June 20, 2012 9:44 AM 0