Our company policy states a customer will pay for any water usage over the customer’s average billed amount up to 75,000 gallons per month, at a rate of $4.49 per 1,000 gallons of water, plus the current 7% sales tax and water tracking rate @ .22¢ per 1,000 gallons of water, which is a reduced rate. $4.49 per 1,000 gallons is our current rate tariffs lowest rate block.
One adjustment per 12 month period. Determine previous 12 month average use. Subtract average from "leaked" total gallons. Write off 50% of the leaked gallons. Bill the balance of leaked water at $ 3.04 per thousand gallons, plus average use amount. Arrange payment schedule to spread costs over up to three months if requested. Late fees still apply to outstanding balances. Our most basic production costs are covered, and the customer is relieved. We review and modify the policy annually.
We now give credit on retail price. The board is wanting to change our policy and are looking for ways other municipal water does theirs. We do not have sewer. Our sewer district will only give credit for the water that does not go down the drain for leaks.
We offer a water credit for use over 150% of normal use (defined as use the same month the previous year) to account for seasonable variability. The water is credited at the difference between the retail rate in each tier minus the cost of the wholesale water we purchase. We are a 100% purchase system. Giving a credit on wholesale purchased water would place the burden of a customer's leak on other rate payers, so we always recoup the cost of purchased water regardless of the size of the leak. We will offer a payment plan if the customer cannot pay it all upfront.