The District of Columbia Water and Sewer Authority (WASA) Board Chairman Robin B. Martin announced the Board’s approval of a 5.5 percent water and sewer rate increase, which is significantly less than the 7.5 percent increase originally proposed by WASA management. The rate adjustment was approved at this month’s meeting of the WASA Board of Directors following a June public hearing and an extended public comment period. The rate adjustment takes effect with the October 2007 customer billing.

For the typical residential WASA customer, this will result in an increase of approximately $2.58 a month, based on an average monthly usage of 8.33 hundred cubic feet (Ccf) or 6,231 gallons of water. Additionally, the monthly District Right of Way/Payment in Lieu of Taxes (PILOT) fees will increase from $.44 per Ccf to $.47 per Ccf. These fees are charged to WASA by the District of Columbia government, and are passed through as a separate line item on the customer’s bill.

Periodic rate adjustments are necessary to cover the cost of a ten-year, $2.2 billion program to rebuild the District’s water and sewer infrastructure and to ensure compliance with the U.S. Environmental Protection Agency (EPA) regulations for water quality and wastewater collection and treatment operations. Despite the rate increase, WASA’s services continue to be priced competitively with other large East Coast water and sewer utilities.

“The biggest driver of rates,” said Board Chairman Martin, “is WASA’s enormous ongoing capital improvement program. The Board gave serious consideration to WASA’s future revenue needs when lowering the original proposed rate from 7.5 to 5.5 percent. The Board determined that this approach will allow us to finance the needed infrastructure repairs and upgrades while meeting federal requirements for pollution control in District waterways and continuing our commitment to gradual rate increases for the benefit of our customers.”

WASA provides water and wastewater collection and treatment services for retail customers in the District. The proposed rate increases were advertised extensively and discussed with residents, businesses and elected officials at a number of community meetings since first announced in February.

“The Board of Directors does not rubber stamp proposed rate increases,” Chairman Martin explained, “In fact, eight of the nine increases proposed by management since WASA’s creation have been either modified or rejected, based on customer feedback and revenue and expense adjustments to the Authority’s financial plan.”

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