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2019 Water Rates Increase

Background 

For the reasons described below your Peacock Hill Service Company increased its water usage rates in the latter half of 2019. The last rate increase was in 2006.  Please review this web page to learn more about the rate increase.

Approval 

The new PHSC tariffs with rates and regulations were filed with the Virginia State Corporation Commission (SCC), Division of Energey Regulation, in May and approved effective July 1, 2019.

The new tariffs document, with the revised rules, rates and regulations can be found on the Tariffs: Rules, Rates and Regulations webpage.

Engineering Study 

As part of the development of the new tariffs the Charlottesville engineering consultants Roudabush & Gale Associates performed a study of the PHSC infrastructure, including a review of the current rates, and the proposed changes which can be viewed by clicking the following link. 

Engineering Study

Public Meeting 

On Friday, April 26, from 6:30pm - 8:30pm, at Murray Elementary School, an open public meeting was held for all homeowners to learn more about the PHSC rates increase. Several homeowners were in attendance. Questions and answers by the attendees are included along with other FAQs listed below.

Frequently Asked Questions

   1. Why are rates being increased? Rates have not increased since 2006. That is 13 years without an increase in rates. In recent years, we have been spending down a large reserve on needed capital repairs such as rehabilitating. replacing the telemetry system. Current reserves are at a prudent minimum.
 
2. Do the new rates apply to every homeowner? The rates apply to every homeowner with active water service. 
 
3. How do the old rates compare to the new rates ? In setting the new rates we used a zero sum approach and looked at every facet of providing water service to the community. We looked at our billing, metering, equipment and distribution system. We hired an engineering firm to look at funding of ongoing replacement of infrastructure and risks we face with an aging system. The rate we arrived at was less than what it would if the cost of living were applied every year but a considerable jump from current rates. In short, the rate went from $17.50 monthly service fee and a rate of $0.0075 per gallon (or $7.50 per 1,000 gallons) to a $25 service fee and a rate of $0.0101 per gallon (or $10.10 per 1,000 gallons). The per gallon rate for usage greater than 21,000 gallons is unchanged.

4. When will the new rates be implemented? The new rates go into effect for water and sewage usage beginning with the July 1, 2019 billing period for September 1st billing.
 
5. How will the increased revenue from the rate increase be used? We will stop borrowing from the reserve fund. We will contribute to a capital replacement fund. We will make improvements to the system to improve water quality.
 
6. What are the risks to out water supply?  As part of the the assessment we looked at risks and reviewed plans to react to them: 
7. What system improvements can be made for water quality? Ideas have been brought up but we did not have funding to pursue them. They include:
8. What reserves are necessary? Long ago the board decided that it would be prudent to keep the amount of money on hand to drill a well and put it into service.
 
9. How much is the system worth?  According to our asset inventory the PHSC system is worth $2 million dollars.