5555886 District of Columbia Water and Sewer Authority - Notice of Final Rulemaking - Amend Chapter 1 – ROW and PILOT Fees, Water System Replacement Fee, and Definitions; and Chapter 41 - Retail Rates for Water Service and Retail Rates Sewer Service,...

DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY

 

NOTICE OF FINAL RULEMAKING

 

The Board of Directors (Board) of the District of Columbia Water and Sewer Authority (DC Water), pursuant to the authority set forth in Sections 203(3) and (11) and 216 of the Water and Sewer Authority Establishment and Department of Public Works Reorganization Act of 1996, effective April 18, 1996 (D.C. Law 11-111, D.C. Official Code §§ 203(3), (11) and 216; D.C. Official Code §§ 34-2202.03(3) and (11) (2012 Repl.) and D.C. Official Code § 34-2202.16 (2012 Repl.)); Section 6(a) of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1206; D.C. Official Code § 2-505(a) (2012 Repl.)); and in accordance with Chapter 40 (Retail Ratemaking) of Title 21 (Water and Sanitation) of the District of Columbia Municipal Regulations (DCMR), hereby gives notice that at its regularly scheduled meeting on July 2, 2015, the Board took final action through adoption of Board Resolution #15-67 to amend Sections 112 (Fees) and 199 (Definitions) of Chapter 1 (Water Supply); and Sections 4100 (Rates for Water Service), 4101 (Rates for Sewer Service), and 4102 (Customer Assistance Program) of Chapter 41 (Retail Water and Sewer Rates) of Title 21 (Water and Sanitation) of the DCMR.

 

Pursuant to Board Resolution #15-24, dated February 5, 2015, DC Water’s proposed rulemaking was published in the D.C. Register on February 20, 2015 at 62 DCR 2367.  Further, a notice of public hearing was published in the D.C. Register on April 3, 2015 at 62 DCR 3934, and a public hearing was held on May 13, 2015.  The record of the public hearing remained open until June 15, 2015, to receive written comments on the proposed rulemaking.  DC Water also conducted eight (8) town hall meetings from April 1, 2015 through April 30, 2015 to receive comments on the proposed rulemaking.  On June 23, 2015, the Retail Water and Sewer Rates Committee met to consider the comments offered at the May 13, 2015 public hearing and during the public comment period and recommendations from the DC Water General Manager.

 

On July 2, 2015, the Board, through Resolution #15-67, after consideration of all comments received and the report of the Retail Water and Sewer Rates Committee, voted to amend the DCMR to: implement a Customer Class-Based Volumetric Rate structure with differentiation based on the peaking demand of each customer class (residential, multi-family, and non-residential); implement a Lifeline Rate for the first four (4) hundred cubic feet (4 Ccf) of Residential customer water use; implement a combined retail water and sewer rate decrease of $0.10 per one hundred cubic feet (Ccf) for the first 4 Ccf of water use; implement a combined retail water and sewer rate increase of $0.69 per Ccf for water usage greater than 4 Ccf; implement a combined retail water and sewer rate increase of $0.27 per Ccf of water use by multi-family customers; implement a combined retail water and sewer rate increase of $0.81 per Ccf of water use by non-residential customers; implement an increase in the monthly Clean Rivers Impervious Surface Area Charge of $3.55 per Equivalent Residential Unit; implement a new monthly Water System Replacement Fee; maintain the Right-of-Way Pass Through Charge at $0.17 per Ccf; implement an increase the Payment-in-Lieu-of Taxes Fee of $0.01 per Ccf.

 

No changes were made to the substance of the proposed regulations. Clarifying revisions were made to Subsection 112.10 to separate the meaning of the phase “Water System Replacement Fee” and placing the charges for residential, multi-family and non-residential customers in a paragraph.  No changes were made to the charges as proposed. The credit for eligible Customer Assistance Program customers was expanded from a fixed credit of $6.30 to one hundred percent (100%) of the monthly billed Water System Replacement Fee.

 

This final rulemaking will become effective October 1, 2015.

 

Chapter 1, WATER SUPPLY, of Title 21 DCMR, WATER AND SANITATION, is amended as follows:

 

Section 112, FEES, amends Subsection 112.8 to read as follows:

 

112.8               Effective October 1, 2015, the District of Columbia Right-of-Way Occupancy Fee Pass Through Charge and the Payment-in-Lieu of Taxes (PILOT) Fee, shall be increased from sixty-three cents ($0.63) for each one hundred cubic feet (1 Ccf) (or the equivalent of eighty-four cents ($0.84) for each one thousand gallons (1,000 gals.) (one hundred cubic feet (1 Ccf) equals seven hundred forty-eight and five hundredths gallons (748.05 gals.)) to sixty-four cents ($0.64) for each one hundred cubic feet (1 Ccf) (or the equivalent of eighty-six cents ($0.86) for each one thousand gallons (1,000 gals.)) of water used, divided as follows:

 

(a)        District of Columbia Right-of-Way Fee, assessed to recover the cost of fees charged by the District of Columbia to D.C. Water and Sewer Authority for use of District of Columbia public space and rights of way, shall be:

 

(1)        Residential Customers: seventeen cents ($0.17) per Ccf (or the equivalent of twenty-two cents ($0.22) per one thousand gallons (1,000 gals.)) of water used;

 

(2)        Multi-Family Customers: seventeen cents ($0.17) per Ccf (or the equivalent of twenty-two cents ($0.22) per one thousand gallons (1,000 gals.)) of water used; and

 

(3)        Non-Residential Customers: seventeen cents ($0.17) per Ccf (or the equivalent of twenty-two cents ($0.22) per one thousand gallons (1,000 gals.)) of water used; and

 

(b)        Payment-in-Lieu of Taxes to the Office of the Chief Financial Officer (OCFO) of the District of Columbia, assessed to cover the amount which D.C. Water and Sewer Authority pays each fiscal year to the District of Columbia, consistent with D.C. Water and Sewer Authority's enabling statute for public goods and services received from the District of Columbia: shall be increased from forty-six cents ($0.46) per Ccf (or the equivalent of sixty-two cents ($0.62) per one thousand gallons (1,000 gals.)) of water used to:

 

(1)        Residential Customers: forty-seven cents ($0.47) per Ccf (or the equivalent of sixty-four cents ($0.64) per one thousand gallons (1,000 gals.)) of water used;

 

(2)        Multi-Family Customers: forty-seven cents ($0.47) per Ccf (or the equivalent of sixty-four cents ($0.64) per one thousand gallons (1,000 gals.)) of water used; and

 

(3)        Non-Residential Customers: forty-seven cents ($0.47) per Ccf (or the equivalent of sixty-four cents ($0.64) per one thousand gallons (1,000 gals.)) of water used.

 

Section 112 is amended by adding a new Subsection 112.10 to read as follows:

 

112.10             For purposes of this section, the phrase “Water System Replacement Fee” (WSRF) means the monthly fee charged to residential, multi-family, and non-residential customers to recover the cost of the one percent (1%) renewal and replacement of aging water infrastructure.

 

(a)                Residential, multi-family, and non-residential customers shall be charged a monthly Water System Replacement Fee as follows:

 

Meter Size (inches)	Meter Register Type	Monthly Water System Replacement Fee
5/8”	Single Register	$ 6.30
3/4"	Single Register	$ 7.39
1”	Single Register	$ 9.67
1”x1.25”	Single and Multiple Register	$ 15.40
1.5”	Single Register	$ 41.35
2”	Single and Multiple Register	$ 83.75
3”	Single and Multiple Register	$ 232.13
4”	Single and Multiple Register	$ 561.02
6”	Single and Multiple Register	$ 1,292.14
8”	Single and Multiple Register	$ 5,785.51
8”x2”	Multiple Register	$ 1,899.60
8”x4”x1”	Multiple Register	$ 2,438.35
10”	Single and Multiple Register	$ 6,679.65
12”	Single and Multiple Register	$ 6,679.65
16”	Single and Multiple Register	$ 6,679.65

 

Section 199, DEFINITIONS, is amended by adding the following terms and definitions to read as follows:

 

Single Register – Meter that has only one device that displays the consumption volume.

 

Multiple Register – Meter that has two or more devices that can display the consumption volume at different flow rates (high or low) or different uses, including, but not limited to, Demand Flow and Fire Flow.

 

Chapter 41, RETAIL WATER AND SEWER RATES, is amended as follows:

 

Section 4100, RATES FOR WATER SERVICE, amends Subsection 4100.3 as follows:

 

4100.3             Effective October 1, 2015, the rate for retail metered water service shall be increased from three dollars and eighty-eight cents ($3.88) for each one hundred cubic feet (1 Ccf) (or the equivalent of five dollars and nineteen cents ($5.19) for each one thousand gallons (1,000 gals.) (one hundred cubic feet (1 Ccf) equals seven hundred forty-eight and five hundredths gallons (748.05 gals.)) of water used to:

 

(a)        Residential Customers: three dollars and eight cents ($3.08) per Ccf (or the equivalent of four dollars and twelve cents ($4.12) for each one thousand gallons (1,000 gals.)) for the consumption of zero (0) to four (4) hundred cubic feet (Ccf) of water used.

 

(b)        Residential Customers: three dollars and eighty-seven cents ($3.87) per Ccf (or the equivalent of five dollars and seventeen cents ($5.17) for each one thousand gallons (1,000 gals.)) for consumption greater than four (4) hundred cubic feet (Ccf) of water used.

 

(c)        Multi-Family Customers: three dollars and forty-five cents ($3.45) per Ccf (or the equivalent of four dollars and sixty-one cents ($4.61) for each one thousand gallons (1,000 gals.)) of water used.

 

(d)       Non-Residential Customers: three dollars and ninety-nine cents ($3.99) per Ccf (or the equivalent of five dollars and thirty-three cents ($5.33) for each one thousand gallons (1,000 gals.)) of water used.

 

Section 4101, RATES FOR SEWER SERVICE, is amended as follows:

 

4101                RATES FOR SEWER SERVICE

 

4101.1             Effective October 1, 2015, the rates for sanitary sewer service shall be:

 

(a)        The retail sanitary sewer service rate shall be increased from four dollars and seventy-four cents ($4.74) for each one hundred cubic feet (1 Ccf) (or six dollars and thirty-three cents ($6.33) for each one thousand gallons (1,000 gals.) (one hundred cubic feet (1 Ccf) equals seven hundred forty-eight and five hundredths gallons (748.05 gals.)) of water used to:

 

(1)        Residential Customers: five dollars and forty-four cents ($5.44) per Ccf (or the equivalent of seven dollars and twenty-seven cents ($7.27) for each one thousand gallons (1,000 gals.)) of water used.

 

(2)        Multi-Family Customers: five dollars and forty-four cents ($5.44) per Ccf (or the equivalent of seven dollars and twenty-seven cents ($7.27) for each one thousand gallons (1,000 gals.)) of water used.

 

(3)        Non-Residential Customers: five dollars and forty-four cents ($5.44) per Ccf (or the equivalent of seven dollars and twenty-seven cents ($7.27) for each one thousand gallons (1,000 gals.)) of water used.

 

4101.2             The rates for sanitary sewer service for the discharge of groundwater, cooling water and non-potable water sources shall be:

 

(a)        The retail groundwater sewer charge for an unimproved real property under construction shall be two dollars and thirty-three cents ($2.33) per Ccf (one hundred cubic feet (1 Ccf) equals seven hundred forty-eight and five hundredths gallons (748.05 gals.)) for groundwater discharged into the District’s wastewater sewer system.

 

(b)        The retail cooling water sewer charge shall be the retail sanitary sewer service rate set forth in Subsection 4101.1(a) for cooling water discharged into the District's wastewater sewer system.

 

(c)        The retail non-potable water source sewer charge shall be the retail sanitary sewer service rate set forth in Subsection 4101.1(a) for non-potable water discharged into the District's wastewater sewer system.

 

4101.3             Effective October 1, 2015, the annual Clean Rivers Impervious Surface Area Charge (CRIAC or IAC) shall be increased from two hundred one dollars ($201.00), billed monthly at sixteen dollars and seventy-five cents ($16.75), per Equivalent Residential Unit (ERU), to two hundred forty-three dollars and sixty cents ($243.60) per ERU, billed monthly as follows:

 

(a)        Residential Customers: twenty dollars and thirty cents ($20.30) per month for each ERU.

 

(b)        Multi-Family Customers: twenty dollars and thirty cents ($20.30) per month for each ERU.

 

(c)        Non-Residential Customers: twenty dollars and thirty cents ($20.30) per month for each ERU.

 

4101.4             The CRIAC shall be based upon the Equivalent Residential Unit (ERU).  An ERU is defined as one thousand square feet (1,000 sq. ft.) of impervious surface area, taking account of a statistical median of residential properties.

 

4101.5             All residential customers shall be assessed a CRIAC based on the following Six-Tier Residential Rate Structure for the CRIAC:

 

Tier	Size of Impervious Area (Square Feet)	Equivalent Residential Unit (ERU)
Tier 1	100 - 600	0.6
Tier 2	700 - 2000	1.0
Tier 3	2,100 - 3,000	2.4
Tier 4	3,100 - 7,000	3.8
Tier 5	7,100 - 11000	8.6
Tier 6	11,100 and more	13.5

 

4101.6             All non-residential and multi-family customers shall be assessed ERU(s) based upon the total amount of impervious surface area on each lot. This total amount of impervious surface shall be converted into ERU(s), truncated to the nearest one-hundred (100) square feet.

 

4101.7             Impervious Only Properties are defined and subject to the follow requirements:

 

(a)                Impervious Only Properties are properties that do not currently have metered water/sewer service (for example, parking lots) and may require the creation of new accounts; and

 

(b)               Effective October 1, 2012, Impervious Only Properties shall be billed as follows:

 

(1)               Impervious Only Properties with three (3) or more ERU’s shall be billed monthly.

 

(2)               Impervious Only Properties with less than three (3) ERU’s shall be billed every six (6) months.

 

(3)               Customers who are billed for more than one (1) property and who participate in District of Columbia Water and Sewer Authority’s group billing program shall be billed monthly for all properties.

 

Section 4102, CUSTOMER ASSISTANCE PROGRAMS, is amended as follows:

 

4102.1             CUSTOMER ASSISTANCE PROGRAM FOR HOUSEHOLDS AND TENANTS

 

(a)        Eligible households and tenants will receive an exemption from water service charges, sewer service charges, Payment-in-Lieu of Taxes (PILOT) and Right-of-Way (ROW) fees for the first Four Hundred Cubic Feet (4 Ccf) per month of water used. If the customer uses less than Four Hundred Cubic Feet (4 Ccf) of water in any month, the exemption will apply to that month's actual water usage.

 

(b)        Eligible households and tenants will receive a credit of one hundred percent (100%) off of the monthly billed Water System Replacement Fee.

 

(c)        Participation in the Customer Assistance Program is limited to single-family residential accounts and individually metered tenant accounts when the eligible applicant is responsible for paying for water services.

 

(d)       Eligibility is determined by the District of Columbia Department of Environment Energy Office.