RPU to continue listening to customers input on water conservation rates
FOR IMMEDIATE RELEASE
october 23, 2009
CONTACT: Tony Benson
Communications Coordinator
507-280-1534
tbenson@rpu.org
RPU to continue listening to customers input on water conservation rates
ROCHESTER, MN— Rochester Public Utilities (RPU) continues to seek customer input on the proposed water conservation rates that will be going into effect in 2010. During the October Utility Board meeting on October 27, there will be an open comment period available for customers to provide input to staff and the Board on the rates and rate structure.
Reasons why RPU is working to implement the new water conservation rates are because of RPU’s dedication to be good stewards of the environment and because of the new Minnesota state statute that requires water utilities to implement a water conservation rate. The rate structure will be chosen by the Utility Board based on customer input, an independent cost of service study, and financial impact on all customer classes that meet the state’s conservation goal(s).
The study develops the revenue requirements for providing water service based on class of customer and the demand that each type of customer places on the system. As a community owned utility, RPU rates are designed to charge only to supply the service. RPU does not anticipate a change in the overall revenue for the water utility, but will see a change in the fixed charges and the commodity charges by customer class and type of use.
Based on the study, there are three types of conservation rates being proposed.
· Inclining block rates- An inclining block rate sets a threshold for customer’s usage. Up to a certain level of usage will cost customers a lower rate per unit, but above the threshold the rate per unit goes up for the higher usage.
· Seasonal rates regardless of the type of customer- Rates would be set depending on what time of the year the water is used. There would be an off-peak (winter) and an on-peak (summer) usage rate per unit. During on-peak months, the cost per unit would be higher than off-peak months. This would apply to all customer classes.
· Seasonal rates based on customer class- This rate structure would be a seasonal on-peak and off-peak rate, but the cost per unit would vary depending on the customer class.
“Water is a very precious commodity and is only going to remain plentiful if we all work to conserve it. We understand that pricing changes in order to incent conservation is a new approach. By listening to our customers and using the data from the cost of service study, we will be equipped to present the Utility Board with the best information available so that they can make an informed decision,” said Larry Koshire, RPU General Manager.
Pricing impact to customers will differ depending on the rate structure and water usage. Timing for a decision on a rate structure and when the new rate structure will go into place is still being determined by RPU staff and the Utility Board.
An open comment period will be available for customers to speak with the RPU Utility Board at the October Board Meeting on Tuesday, October 27 at 4p.m. at the RPU Service Center.
For more information on RPU or on the water conservation rates, please contact Tony Benson at 507-280-1534 or email at tbenson@rpu.org.
About Rochester Public Utilities
As the municipal utility of Rochester, Minn., for more than 110 years, RPU provides high-quality and reliable electricity to over 47,000 customers. Water customers number more than 36,000. RPU continually investigates innovative technologies to help customers realize the best value from the services they receive. Current initiatives include fuel cell research, wind power, and photovoltaic offerings.
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