Water Rates to Rise $2.26 Per Customer Per Month in Houston: Reasons — Growing Population; Rising Cost of Treating Water, as “Caustic Soda” 300% More Expensive; Hurricane Katrina Repair to Water Infrastructure (HoustonChronicle)

Mar.03, 2009 in Water Bills, Water Rates

(March 2, 2009, The Houston Chronicle)

Water bills in Houston are poised to go up about $2.26 a month for an average homeowner under a plan City Council is expected to begin weighing today.

Under procedures put in place after 2004 – when water bills went up as high as 10 percent for many residents – rates only have increased from year to year based on inflation. If the proposal is approved, population increases also will be factored in the rates.

The amount of this year’s planned increase tied to inflation is an average of $1.46 per month; the proposed population increase would add 80 cents a month, for a total of about $27, or 5 percent, a year. The average city customer uses 6,000 gallons of water a month at a cost of about $40 in water and sewer fees.

City officials said the higher cost of treating water and repairing infrastructure after Hurricane Ike led them to seek the change, which, if approved, would provide the city with an additional $12.5 million for improvements. The city has about 460,000 customers.

“It puts us in a much better position to keep a healthy construction and maintenance program to make sure that the infrastructure across the city stays healthy,” said Susan Bandy, deputy director in the city’s Department of Public Works and Engineering.

She cited the recent 300 percent increase in the price of “caustic soda” as an example of why costs have grown higher. The chemical, also known as sodium hydroxide, is widely used in water treatment to reduce the acidity of water.

Many of the poorest ratepayers would see a far lower increase of about 17 cents a month due to adding population growth as a factor in rate increases, Bandy said. That amounts to about $2 annually.

Councilwoman Anne Clutterbuck, who chairs the council’s Budget and Fiscal Affairs Committee, said the increase is important because it could strengthen the city’s position in bond transactions that often reward interest rates based on the financial viability of the utility system. The committee will review the matter today and is expected to send it to the full council for approval later this month,

She added that tacking on the population-related increase to the price jump for inflation will be less jarring for consumers if it happens all at once instead of throughout the year.

“It’s easier for the consumer if they can know for planning purposes, especially in these economic times,” she said.

bradley.olson@chron.com

(Original Article Here)