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Expenses surpass revenue for CUC water, sewage
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Posted on Feb 22 2009
With rates for the Commonwealth Utilities Corp. sewer and water remaining unchanged for the last 22 and 14 years, respectively, expenses have exceeded revenue by several million dollars during the last two years.
In 2008, expenses for water and sewer were $10 million while only $6 million came in, according to a report presented to the Legislature on Friday. In 2007, revenue was slightly more than $8 million while expenses reached nearly $14 million.
From 2004 to 2006, revenue and expenses remained fairly even between $10 and $12 million.
Currently, water rates are set with a base rate and higher unit costs as more water is used. This method is used to encourage conservation, according to CUC. Current sewer rates assume customers produce 90 percent of the water purchased. There is also a base rate and a graduated unit cost as more sewage is produced.
Georgetown Consulting Group is currently reviewing data and will recommend new rates that balance economic conditions and CUC’s needs, the utility agency said.
In December, the Public Utilities Commission, which approves rates, used Georgetown’s recommendations to set new power rates. Another proposed action is to separate revenue and expending activities between water, sewer and electric.
