2017 University Park Rate Filing

Transcription

1 2017 University Park Rate Filing August 1, 2017

2 What we will talk about tonight o New pipeline that will bring Kankakee softened and filtered water to your home by the end of this year o Cost of the new pipeline, which will be reflected in your rates next year o New method of calculating summer water usage that may lower your monthly wastewater cost o Programs and services that are available for customers who experience challenges paying the new rates

3 Water Quality Project Timeline

4 Capital Investment o = $30M of capital spending o Capital Related to: University Park Pipeline Project Best-tasting water in Illinois Reduce iron by 90% Reduce hardness by 70% Wastewater Treatment Plant Improvements Increase efficiency and improve safety IEPA regulations Lift Station Improvements Reduce potential for backups in the system Infiltration and Inflow Reduction Projects Eliminate overload of the system

5 Capital Investment o Capital Related to: Wastewater and Water Main Replacement Projects Improve reliability Water Meter and Radio Read Device Replacements / Upgrades Increase reading efficiency Kankakee Water Treatment Plant Expansion Improve reliability IEPA regulations Allow for growth and development o Over $5.36 of investment for every dollar of revenue generated (Industry Average = $3.35)

6 Operating and Maintenance Expense o O&M expenses have been held to a 0.7% average annual increase due to savings in: Electric Supply Interest Transportation Costs: Leases and Fuel o O&M expense per customer of $285 o O&M to Revenue of 30% o National Contract Purchasing Power Supply Rate Locked Through 2020 at $0.039/kWh o More of customer bill supporting capital investment to ensure systems for future generations

7 University Park Pipeline Project

8 Water Quality Comparison UP Wells vs Kankakee Water Treatment Plant

9 Sample Customer Bill Based on 4,500 gallons/month: Cost increase $38.95 per month $ 1.30 per day Approximately $ 0.01 per gallon of drinking water Approximately $ 0.02 per gallon of sewer treated Potential Cost Offsets Eliminating water softer - $500 - $1,000 Eliminating salt - $ $20.00/month Eliminating bottled water - $1.20/gallon

10 Rate Filing Details

11 Rate Filing Details o Without consolidation: o The average combined bill for water and wastewater would increase by $58.82 per month o Nearly $20 more per month than Aqua is requesting o Qualifying Infrastructure Plant Surcharge to 0% o May 1 st Filing Date, covers o 11-month process

12 Local Community Water Rate Comparison

13 Sewer Historical Based Consumption The winter average is calculated by the average usage for the months of December - March. For the Summer Capped Period, the customer will be billed the winter average or the actual usage, whichever is less for the month. If the customer does not have usage for all four months of the winter measurement period, they will be billed the default winter usage of 4500 or the actual usage for the month, whichever is less. During the months of November through April, the customer would be billed the actual usage for the month.

14 Sewer Historical Based Consumption

15 Other Factors Affecting Rates o Increased Regulatory Requirements Cross Connection Control Enforcement ICC Part 280: Procedures for Gas, Electric, Water and Sanitary Sewer Utilities Governing Eligibility for Service, Deposits, Billing, Payments, Refunds and Disconnection of Service o Conservation Average residential usage is declining by 1.6% annually 5,142 in ,828 in ,500 in 2017

16 Affordability Services o Programs and services available for customers having difficulty paying their bill: o Budget billing available o Payment arrangements available o Waived penalties for low income customers o Working on establishing a customer assistance plan funded by customers o Please call 877.WTR.AQUA for options

17 Aqua Goals o Quality Product and Service Improved Reliability Improved Water Quality Enhanced Fire Protection Fewer Estimated Bills o Provide Quality Jobs o Promote Public Education on River Watershed o Support Economic Development o Continuous Investment in Will County

18 Questions?