Water rates for City Water, Light and Power customers will rise another 12 percent this month.
The increase is the third of four rate hikes approved to pay for various water infrastructure upgrades at the city-owned utility.
The initial rate hike of roughly 25 percent took effect in May 2008. An additional increase of 10 percent is planned for March 2011.
For the typical residential customer using 10 units of water, about 7,480 gallons monthly, this month’s rate hike will cost an extra $2.74 a month.
The higher rates will generate $12.3 million for the utility once all four are in place in 2011, according to CWLP. Even when all the rate increases are phased in, the utility’s rates will still be below the 2008 average rates of 13 other similar-sized communities in Illinois, according to Amber Sabin, the utility’s spokeswoman.
Revenue from the rate increases will pay for various improvement projects, including:
*Replacement of the Spaulding Dam gates — replacement of all five 1930s-era dam gates is complete. The last gate was installed in December.
*Building a new chemical feed building — construction is in progress. The building will improve chemical handling and allow the utility to buy more chemicals in bulk and replace a 1950s-era electrical system.
*New pump station — Final design is almost finished. The low-service pumps are original to the 1930s equipment that the utility has to manufacture most replacement parts for, Sabin said. The size of the pumps are no longer suitable for demand.
Projected rise
Customers are billed based on the number of units of water they use each month. One unit equals 748 gallons. The average Springfield household uses about three units per person per month, according to CWLP. Here’s how the four-step rate increases affects the typical 10-unit water customer with a 5/8-inch meter:
Effective date // Average monthly water bill
- Oct. 1, 2004: $16.56
- May 1, 2008: $19.43
- March 1, 2009: $22.71
- March 1, 2010: $25.45
- March 1, 2011: $28.00
Deana Poole can be reached at 788-1533.
Read the original article from The State Journal-Register.
