PWD 2012 Rate Hearing

PHOTO: RANDY CALDERONE

Philadelphia Water Department Proposed Rate Increases

IMAGEPublic meeting (any will do!)

Goals:

• Open and transparent public process.

• Raising rates are a last resort.

• Gradual rate adjustments.

• Predictable rates for customers.

• A strong connection between costs and services.

•Meeting expectations of our customers and regulators

Philadelphia Water Department

PWD RATES PROCESS

TRANSPARENT PUBLIC PROCESS

Process:

• Rate changes are a highly regulated, very public process

• The Mayor, City Council President, and City Controller appoint a Hearing Officer to oversee the rate process and a Public Advocate to challenge the rate increase.

• The Hearing Officer recommends a rate change at the conclusion of a series of technical and public hearings.


SYSTEM OVERVIEW

3 drinking water plants

3 wastewater plants

25+ pump stations

18 reservoirs

5 water storage tanks


25+

18

SYSTEM OVERVIEW

• Over 6,000 miles of pipes• 3,500 miles of sewer • 3,000 miles of water main

On the street and under your feet:

• 92,430 manholes

• 25,234 hydrants


• $316 million increase needed over the next four fiscal years

• Residential customers will see an average annual increase of $4.10 on their monthly bill over the next four years which is equivalent to an average annual increase of 6.5%

PROPOSED RATES


Even with this increase,PWD’s rates are substantiallyless – often ½ to 1/3 of the cost that our suburban neighbors are paying for theirwater and sewer utilities

Effective Date Total Monthly BillAdditional

Monthly ChargePercentage

Increase

Oct. 1, 2012 $ 60.95 $ 3.52 6.1 %

July 1, 2013 $ 64.71 $ 3.76 6.2 %

July 1, 2014 $ 69.07 $ 4.36 6.7 %

July 1, 2015 $ 73.82 $ 4.75 6.9 %

WHEN WILL RATES CHANGE?


HOW DOES PHILADELPHIA COMPARE REGIONALLY?


Water Provider Monthly Water Bill

Pennsylvania American Water $ 54.60

Aqua Pennsylvania $ 53.61

New Jersey American Water $ 35.59

Trenton $ 28.11

Doylestown Township $ 27.98

Philadelphia Water Dept. $ 26.08

North Penn Water Authority $ 22.59

North Wales Water Authority $ 20.16

WHAT DO THESE CHARGES PAY FOR TODAY?


On average, your bill pays for 150 gallons of water a day. That’s enough for:

3 showers

15 flushes

1 dishwasher load

3 gallons of drinking water

10 faucet uses (to shave, wash face, hands, brush teeth)

WHAT DO THESE CHARGES PAY FOR TODAY?


Picture of Water Works

INVESTING IN THE FUTURE

Philadelphia’s water department was the first In America to supply an entire city with drinking water.

The Fairmount Water Works served as a model for more than 30 other American water delivery systems.


MINIMIZING COMBINED SEWER OVERFLOWS (CSOS)


Waste water from your home and rainwater from the street go to the same pipe in some portions of the city.

A tenth of an inch of rain can cause raw sewage to spill into our waterways.

Regulations require PWD to eliminate these overflows.

PWD is investing in many changes to fix this problem. These changes are outlined in the Green City, Clean Waters Plan.

RESIDENTIAL PROGRAMS: SENIOR CITIZEN DISCOUNT


Senior Citizen Discount

- A 25 percent discount is provided for senior citizens 65 years of age or older, with a total household income of $30,500/year.

- Administered by the Water Revenue Bureau.

- Provided discounts to 21,878 seniors in FY11 at a total cost of $2,623,696.

RESIDENTIAL PROGRAMS: HELP


Homeowner's Emergency Loan Program (HELP)

• To apply for a loan or to find out more about HELP, please call (215) 685-4901.

The Philadelphia Water Department administers the Homeowner's Emergency Loan Program (HELP), an interest-free, installment-payment loan program for water service line and/or sewer lateral repairs. To be eligible for HELP:

- The applicant must be the homeowner of record and reside at the property,- The property must have received a Notice of Defect (NOD) issued by PWD,- The property must be listed as a residential or mixed residential/commercial property,- The property must have an operable water meter,- The property cannot have more than four (4) units, and- The water bill and/or any payment agreements must be current.

All repair costs and fees borrowed must be repaid to the City of Philadelphia.

Applicants requesting loans will complete an application over the phone by calling (215) 685-4901.

RESIDENTIAL PROGRAMS: WRAP


Water Revenue Assistance Program

• Grants of up to $500 on water bills

• Available to prevent water shut off for low income customers

• Assists customers in obtaining federal energy assistance

• Administered by Water Revenue Bureau

• In FY 2011, WRAP provided grants to 9,207 customers at a total cost of $1,054,098.

• Level of assistance based on:• Water usage• Ability to pay current water and sewer bills• Status as a property owner, tenant or occupant.

RESIDENTIAL PROGRAMS: RAIN BARRELS


• PWD provides free rain barrels through rain barrel workshops with ECA.

• Residents sign up for workshops online.

• ECA contractors install the rain barrels

• Does not lower water bill, but excellent way to get involved and help manage Philadelphia stormwater

RESIDENTIAL PROGRAMS: RAIN CHECK


Downspout Planter

Yard Tree

De-Paving

Rain Garden Homeowner Pilot Program:• Get residents involved in managing

stormwater• PWD will help pay for the installation

of “Green Tools” on private homes.• 250 participants in 10

neighborhoods• If successful, PWD will expand the

program.

Pervious Pavers

RESIDENTIAL PROGRAMS: TRIPLE BOTTOM LINE


Economic Benefits

Property ValuesJob creationCompetitive city

Social Benefits

RecreationAestheticsPublic HealthEquity

Environmental Benefits

Fishable, swimmableHabitat enhancementAir QualityEnergy SavingsCarbon Footprint

WHAT WILL MY BILL LOOK LIKE?

Usage charge : amount of water you use


Service charge : metering, billing collecting

Stormwater charge : collection and treatment of rainwater running off your property

SERIES OF PUBLIC MEETINGS


When: Monday, July 9, 2012, 10:00 a.m. ‐ 12:00 noonWhere: Philadelphia Senior Center

509 S. Broad StreetPhiladelphia, PA 19147

When: Tuesday, July 10, 2012, 6:00 ‐ 8:00 p.m.Where: Roxborough Memorial Hospital, Wolcoff Auditorium

5800 Ridge AvenuePhiladelphia, PA 19128

When: Thursday, July 12, 2012, 6:00 ‐ 8:00 p.m.Where: Holy Family University, Campus Center Conference Room 115

9801 Frankford AvenuePhiladelphia, PA 19114

When: Monday, July 16, 2012, 6:30 ‐ 8:30 p.m.Where: YMCA North Philadelphia

1400 N. Broad Street (Broad and Master Sts)Philadelphia, PA 19121

When: Tuesday, July 17, 2012, 6:30 ‐ 8:30 p.m.Where: White Rock Baptist Church

5240 Chestnut StreetPhiladelphia, PA 19139c

Visit us on line at:

www.phillywatersheds.org/rates

MORE INFORMATION


PHOTO: RANDY CALDERONE

Thank You

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PWD 2012 Rate Hearing