Loudoun Water Rate Increase Hearing Scheduled Thursday February 25, 7 pm at Loudoun Water

Loudoun Water would like to remind its Central System Customers that a Public Hearing on a proposed new rate structure is scheduled for Thursday, February 25, at 7:00 pm at its office in Ashburn (44865 Loudoun Water Way, Ashburn). The office is directly North of Gloucester Parkway, off of Loudoun County Parkway.

In December 2009, Loudoun Water announced its intent to raise water and sewer rates in 2010, 2011 and 2012 to keep pace with rising costs, and introduce a new rate structure that encourages conservation. The new rate structure applies to Loudoun Water’s Central System customers, or virtually all residents and businesses in Eastern Loudoun who receive service from Loudoun Water. Community Systems, such as Lenah Run, Raspberry Falls, Village Green, Selma Estates, Beacon Hill and the Reserve at Rokeby are on a separate rate structure and are not affected by this change.

Loudoun Water is not tax supported and is a revenue neutral entity. Income must equal expenses and those expenses are increasing. Three major factors influencing the increase are: the cost of purchased water from Fairfax Water and the City of Fairfax, Loudoun Water’s wholesale providers; operating costs for the Broad Run Water Reclamation Facility; and fuel, chemical and electricity costs which have tremendous impact on Loudoun Water’s budget. Loudoun Water has taken aggressive steps to manage the impact of increasing expenses. Operational and capital spending has been reduced to minimal levels to support operations while remaining committed to providing safe water and dependable service. Even with the higher rates, Loudoun Water will remain comparable to neighboring water utilities. 

The new three-tiered structure allocates the cost of service based on the meter size for each customer. A residential-sized meter allocates 550 gallons of water per day to each home. The second “middle” tier of the rate structure is therefore set to recoup the operating costs for that home’s share of total operating costs. When residential customers use less than their allocation of 550 gallons per day, they pay the first tier rate, which is less. When they use more than their allocation, they pay more. The 2010 tiers for residential customers, which comprise more than 90% of Loudoun Water’s customer base are:

Tier one:        $1.77/thousand gallons – applies to water use at or under 25,000 gallons in a quarter (approximately 275 gallons/home/day)

Tier two:        $4.96/thoudand gallons – applies to water use between 25,000-50,000 gallons in a quarter (approximately 275-550 gallons/home/day)

Tier three:     $6.65/thousand gallons  - applies to water use over 50,000 gallons in a quarter (more than 550 gallons per day).

For comparison, residential customers currently pay $1.82 per thousand gallons with an additional charge of $ 2.73 (for a total of $4.55) when usage is 6,000 gallons or 30% higher than their winter quarter use. Wastewater rates will go from $2.86/thousand gallons currently to $3.14/thousand in 2010. Basic charges (a minimum charge applied to all accounts regardless of usage) are also increasing. Residential customers have been able to preview the change to their bill by using a “Bill Calculator” at Loudoun Water’s website. Rates are similarly increasing for all multi-family (apartment and condos) and commercial accounts.

Details on all the new rates and charges are available in a Public Notice which was advertised for two weeks in January in the Loudoun Times-Mirror and TheLeesburg Today, and they are posted here. In addition, a letter explaining the rate change was sent to all affected customers through U.S. mail in January and February. Public comments made at the February 25 Hearing will be reviewed and considered by the Loudoun Water Board of Directors. They will vote on the changes at their March 11, 3 pm Board Meeting. Rate changes would go into effect April 1, 2010.

Customers can minimize the impact of the rate increase by scrutinizing their water use, particularly lawn watering, which accounts for more than 50% of usage in the summer. Customers are also encouraged to find and fix leaks as they happen. Customers may also be able to divide their quarterly payment into three monthly payments, but must contact Customer Service at 571-291-7880 to formalize this payment arrangement.