New Tariff Rates Effective 2/18/25
- ocwdboard
- 6 days ago
- 2 min read
Rate Increase FAQ
When did rates go into effect?
The new rates were approved for service rendered by Ohio County Water District on or after February 18, 2025.
The first bills to reflect these new rates will be the bills mailed on March 24th.
When and where did we advertise the water rate increase?
Notice was published in the:
· The Ohio County News Times – on April 24, May 1, and May 8, 2024
· The Messenger Inquirer – on April 26, May 3, and May 10, 2024
· The Breckinridge Herald-News - on May 1, May 8, and May 15, 2024
· The Grayson County News – on May 4, May 11, and May 18, 2024
Why did we not advertise the effective rates by the PSC’s recent order?
The Ohio County Water District is not required by law or regulation to publish notice of the PSC-ordered rates. The notice of the proposed rates stated that the PSC may establish rates that differ from those that are proposed and placed the public on notice that the PSC might order higher rates. The PSC has the authority to order a utility to publish notice of the PSC-ordered rates, but it did not order Ohio County Water District to do so.
How much is the rate increase?
Rates were increased 16.83% across the board.
Ohio County Water District requested a 17.66% increase. PSC Staff reviewed Ohio District’s application and recommended an increase of 17.37%. After reviewing the record of the proceeding, the PSC ordered a 16.83% increase which is the required revenue from water sales to meet the overall revenue requirement.
When was the last time we raised our rates?
The last general rate increase occurred on December 3, 2020 of which was based off 2018 financials being over 6 years old.
What prompted us to raise rates?
As we all know, inflation and cost of living have greatly increased significantly over the last 5 years which has increased the District’s operating costs. We are legally obligated by our bond ordinances to maintain rates that produce revenues equal to 120 percent of the sum of our Operation and Maintenance Expenses and our Debt Service Obligations.
CPIs from 2019-2023
2019 = 1.8%
2020 = 1.2%
2021 = 4.7%
2022 = 8.0%
2023 = 4.1%
Total = 19.8%
Social Security Cost of Living Adjustments 2019-2023
2019 = 1.6%
2020 = 1.3%
2021 = 5.9%
2022 = 8.7%
2023 = 3.2%
Total = 20.7%
What if we don’t raise rates?
A bond holder can order us to raise rates if we do not meet bond convenance. Negative outlook in Moody’s ratings.
We do not keep up with inflation of materials, labor, chemicals, utilities, etc. We are 6 years behind.
We will not be able to borrow money in the future for long-term debt because we do not meet the debt service coverage.
Comments