Seattle’s rates are locked in by City ordinance and $28 million stabilization fund
SEATTLE – May 18, 2015 – (RealEstateRama) — Seattle Public Utilities (SPU) said today there are no plans at this time to raise drinking water rates in the event conservation efforts, prompted by a statewide drought, cause a decline in Utility revenues.
Earlier this year, Seattle City Council adopted a two-year plan that holds water rate increases to 1.7 percent for 2016 and 2.7 percent for 2017. SPU Director Ray Hoffman said that unless there is a gigantic drop in water usage, that rate plan will not change.
“Unlike much of the rest of the state, Seattle has been able to hold lots water in our mountain reservoirs, and we have told our customers they can expect a normal water summer,” Hoffman said.
“As always, we are asking people to use water wisely, but even if our revenues decline dramatically as a result of conservation efforts, the rates adopted for the next two years are protected by a $28 million contingency fund designed to bring predictability and stability to water bills,” Hoffman said.
Seattleites already use less water than most cities in the country. In the unlikely event of a large decline in water usage, SPU’s first action would be to tap into its rate stabilization fund. Beyond that, options for meeting that long-term fixed revenue requirement could include canceling capital improvement projects or raising rates.
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Seattle Public Utilities provides essential services — pure mountain drinking water, recycling and composting that lead the nation, and sewer and drainage systems to protect our local waterways — that safeguard your health and our shared environment, and help keep Seattle the best place to live.
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