Rates
How did BCWS set rates?
Water and sewer utilities set rates to cover all costs — the costs of operations, maintenance, overhead and plant investment. To make our rates as reasonable as possible and make sure each customer pays an equitable rate, we periodically conduct formal studies on the cost of providing water and sewer service.
Part of our rate-setting philosophy for water supply has been conservation. BCWS uses an increasing-block rate structure, also called a conservation rate, so the price per thousand gallons increases as water use increases. In other words, customers who use a lot of water and require more system capacity will pay a higher rate than customers who use less water.
For single-family residential customers, these rates went into effect January, 2023:
|
Residential Water Charges |
|
|---|---|
| Basic facilities charge |
|
| First 3,000 gallons |
|
| Next 6,000 gallons |
|
| Over 9,000 gallons |
|
|
Residential Sewer Charges |
|
|---|---|
| Basic facilities charge |
|
| All discharges |
|
Customers whose wastewater discharge flows to a pump station before going to the treatment plant pay $3.70 per thousand gallons for all discharges, which includes the associated electrical and other added operating costs.
In the summer, BCWS bases sewer charges on average winter use because higher summer water use typically does not go into the sewer collection system. This adjustment covers the period between the first meter reading in May and the meter reading in October.
How are rates determined?
- Debt Repayment — As a relatively young system, BCWS has a high cost for capital investment, paying off bonds and interest that was needed to build the water system and provide necessary capacity. Our average cost for water is higher than in an older city, such as Dayton or Cincinnati. Older systems have the advantage of having already paid off their debt.
- Purchased Water — Rather than build and manage a water plant, BCWS has long-term contracts to purchase water from two suppliers.
- Geographical Area — Many any of our neighbors have a more condensed geographical system. In other words, they have more customers per square mile than BCWS which means they can spread their costs over a greater number of users. As our system grows, BCWS will capture more revenue from new customers which will help pay off our debt.
- Growth & Infrastructure Maintenance — BCWS’ service area has experienced a tremendous amount of growth in the past 10 years. To ensure that our system can accommodate this growing demand, we have implemented a capital improvement schedule to replace and improve existing water and sewer lines and wastewater treatment facilities.
- Increasing Regulatory Environment — BCWS operates under strict state and federal rules and regulations. As a result, there are significant costs to maintain compliance. As regulations become more stringent, BCWS must make necessary improvements to ensure the public water supply is safe.
More information is available by calling 513-887-3066.