A new surcharge will hit water bills this summer as the Department of Water Supply strives to reduce its dependence on purchased power.
A new surcharge will hit water bills this summer as the Department of Water Supply strives to reduce its dependence on purchased power.
The energy rate surcharge, set at 5 cents per 1,000 gallons of water, goes into effect July 1 and is expected to generate $460,000 the first year. The money will be used to install power factor correction capacitors at 16 well sites and variable frequency drives at two well sites, the Water Board was informed Tuesday.
The board voted unanimously to approve the new charge, following a public hearing where no members of the public spoke. The board also passed the first reading of its annual budget. At $53.1 million, it’s a 1.4 percent increase from this year’s budget.
As of July 1, water bills will include the new energy charge, a water consumption charge, a set standby charge and a power cost charge that fluctuates with the price of electricity.
Board member Sue Lee Loy said the new energy rate will help the department reach state renewable energy goals, in addition to lowering the department’s electricity bills, savings then passed to the customer.
The power cost charge should decrease as the demand for power decreases with the new energy conservation projects. For the upcoming budget year, purchased power is expected to cost $22 million.
The department also is developing a wind farm facility at Lalamilo in South Kohala. The farm will power the eight wells in the area that pump about 5.1 million gallons a day.
Water users using up to 5,000 gallons a month will continue to pay 89 cents per thousand gallons until July 1, when it will increase to 91 cents and remain at that rate until increasing to 92 cents July 1, 2019.
Those using more than 5,000 gallons monthly but less than 15,000 gallons will continue to pay the current $1.80 per thousand gallons, which will increase to $1.88 on July 1, 2017, and then to $1.95 in 2018 and $2.01 in 2019.
Those using more than 15,000 gallons monthly but less than 40,000 gallons saw an increase from $3.03 per thousand gallons to $3.10 last year, which will increase to $3.20 on July 1, $3.30 on July 1, 2017, $3.40 on July 1, 2018 and $3.53 on July 1, 2019.
The typical homeowner connected to a 5/8-inch pipe experienced a 75-cent increase in the monthly standby charge, bringing it to $16.75 a month last year. That will increase to $17.40 on July 1, $18.30 in 2017, $19.20 in 2018 and $20.20 in 2019.
Email Nancy Cook Lauer at ncook-lauer@westhawaiitoday.com.