Agenda Packets - 1999/10/25 (2) - Laserfiche WebLink

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Rate-setting Practices Communities served by MCES and its reveal why rates are not adjusted annually, interceptor sewers and wastewater but the data may reflect a strong preference treatment plants have the authority to set on the part of ratepayers for no increases. their own retail rates, but they must be Additionally, a substantial increase in a consistent with pertinent laws and single year may provide sufficient revenue regulations. For volume-based rates, the to fund the enterprise for several years. principal pertinent law is the federal From 1986 through 1998, MCES has requirement that users pay their completed seven surveys. Of the 99 proportionate share of costs; for example, responding communities, 12 have increased there are no reduced rates for high-volume their rates during each of the surveyed users. periods. The details of the rate changes are Each MCES survey, since the beginning in shown in the following table and chart. 1986, has indicated that a substantial share of communities do not adjust their residential rates annually. However, data Rate Changes Since 1986 Survey from surveys since 1992 suggest a trend Number of toward more frequent residential rate Change Communities changes. Zero change 2 One increase 8 The costs included in a community's rate Two increases 18 change every year. The majority of costs are Three increases 20 charges from MCES which are adjusted Four increases 20 annually; further, local expenditures can be Five increases 19 expected to vary with price increases and Six increases(maximum) 12 specific local needs. The surveys do not Total 99 Community Rate-setting Practices for Residential Rates Rate Changes from 1986 through 1998 Two increases 18 cities(18%) Three increases ..❖::�. 20 cities(20%) •'•'•••'•••'•'•'•'••• One increase ❖.•,•,•,•,•,❖•❖•• 8 cities(8%) iiiiii••iiiiiiiii•A •i