Water customers face 18% rate hike because they're using less (suburban Sacramento)

[Newsjock]

http://www.sacbee.com/2011/11/02/4023713/carmichael-water-customers-face.html

If you're worried about water bills and you use less water, you should get a lower bill, right?

But that's not happening in the Carmichael Water District.

The district has announced it wants to raise water rates 18 percent starting Jan. 1 – on top of an even bigger rate hike already imposed through mid-2014.

The reason: Water use in the district has fallen below historical average by an astonishing 25 percent, thanks to a mild and wet weather year, foreclosed homes and ratepayers using less water because of rising water bills.

[NYC_SKP]

1. It makes sense, and yet it doesn't seem to make sense.

Fewer customers due to forclosures, etc., means lower receipts/income for the utility.

That less water is being provided it incidental; most of the cost for them is still there in maintaining the infrastructure.

In the end, it's a good thing that less water is being used.

And if the water is metered people will still have incentive to use less individually.

Water, air, food....

[ProgressiveProfessor]

2. Not at all surprising

The users need to pay a certain amount to keep the systems operating. That overhead cost has historically been buried in the per unit charge. If the #units fall, the cost must go up to pay for the overheads.

This is far from the only water utility that has gone through this.

[liberal N proud]

3. Proof that they will screw us for every dime regardless of what we do

[NV Whino]

4. Same thing happened in the East Bay

during the drought in the 70s. People were so efficient about using less water, the rates went up. Damned if you do and damned if you don't. These companies are going to have to rethink their rate structure.