Rates & Metering

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Understanding Rates

DC Water bills residential, commercial and government customers on a monthly basis. The water and sewer bills incorporate DC Water charges and District of Columbia charges together on the same bill. The District of Columbia charges are collected by DC Water, who in turn, passes those fees on to the District. The District fees include PILOT (payment in lieu of taxes), ROW (right of way) and stormwater.

DC Water charges for water, sewer, customer metering and impervious area. Water and sewer charges are billed volumetrically, that is, they are based on how much water a household or business consumes. The impervious area charge (IAC) is a sewer fee that takes into account the area on a property that is made of impermeable surface, which contributes to runoff and combined sewer overflows. The IAC generates funds to cover the cost of the Combined Sewer Overflow Long Term Control Plan (detailed under the "What We Do" section of this website,) a $2.4 billion capital project mandated by the federal government. The customer metering fee is a flat fee based on the meter's size.

How rates are set

Rates are set annually through a year-long process that begins with DC Water developing a budget based on capital and operating needs. Once the budget is accepted by the Board of Directors, a rate structure is proposed and communicated via the DC Register, public meetings and a public hearing. These are all opportunities for the public to comment on the proposed rates. The DC Water Board of Directors votes on the rates, generally in September, to be implemented with the October bill.

What rates pay for

Rates paid by ratepayers cover the cost of delivery of water and sewer service. A little more than half of the rates cover operations. Another quarter covers the cost of capital projects like replacement of aging water and sewer lines, valve replacements and pump station improvements. Capital projects also include several massive projects designed to protect the environment, and are required by the U.S. Environmental Protection Agency. Though the mandate comes from the federal government, the funding sources for these construction projects is not identified. While a small amount of funding has come through the Clean Water Act and Safe Drinking Water Act and other grants, the majority of these capital costs are borne by the ratepayers.

Community Presentation

The following is a community presentation on the rate increases, along with supporting movies.

Current Rates

The proposed rate increase would raise the average DC Water residential customer's bill by $8.66, based on an average consumption of 5,004 gallons of water per month.

Fig. 1 Current and proposed rates (in CCF and equivalent Gallons)
Rate Class Current Rate (Effective 10/1/2009) Proposed Rate (Beginning 10/1/2010)
CCF (hundred cubic feet) 1,000 Gallons CCF (hundred cubic feet) 1,000 Gallons
Water Rate $2.51 $3.35 $3.10 $4.14
Sewer Rate $3.61 $4.83 $3.79 $5.07
The Right of Way (ROW) Fee $0.14 $0.19 $0.14 $0.19
PILOT (Payment In Lieu Of Taxes) Fee $0.43 $0.57 $0.49 $0.65
Groundwater Sewer Charge* $2.33 $3.11 $2.33 $3.11
per ERU (Equivalent Residential Unit)
Impervious Area Charge $2.20 $3.45
Stormwater Fee $2.57 $2.57

*For commercial properties that are under construction.

Fig. 2 Proposed Average Monthly Residential Water and Sewer Bill for 2011
FY 2010 Proposed FY 2011
DC Water Retail Rates* $40.94 $46.09
DC Water Impervious Area Charge $2.20 $3.45
DC Water Customer Metering Fee** $2.01 $3.86
Subtotal DC Water Rates & Charges $45.15 $53.40
Increase Over Prior Year $4.37 $8.25
District of Columbia PILOT Fee* $2.87 $3.28
District of Columbia Right of Way Fee* $0.94 $0.94
District of Columbia Stormwater Fee* $2.57 $2.57
Subtotal District of Columbia Charges $6.38 $6.79
Total Amount Appearing on DC Water Bill $51.53 $60.19
Increase Over Prior Year $4.70 $8.66

*Assumes average (median) monthly consumption of 6.69 CCF or 5,004 gallons.

**The DC Water Customer Metering Fee varies by meter size. The fee given here is the lowest fee and operates as a baseline.

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