LCWSA: Authority commissions usage water study

Published 2:00 am Saturday, August 29, 2020

The Limestone County Water and Sewer Authority is commissioning a study to determine what a fair rate to each customer would be depending on their water usage.

LCWSA CEO Daryl Williamson said some customers are using much more water than others. He wants a study done to look at redesigning the rate structure so those who are using more water will pay more than those who aren’t.

“We want to create a fair rate to all our customers,” Williamson said during the LCWSA board meeting Thursday. “The rates send a price signal where there is a point where you should not use more (water). Right now, we’re sending a price signal that says the more you use, the cheaper it is. It should be the reverse of that.”

Williamson said customers in the eastern part of Limestone County, especially in Madison-annexed Limestone, use much more water than customers in other parts of the county.

“The burden of capital investments is to the east of the county, because of the use of the system,” he said. “We’re not expecting rates to change at all, just creating a fair methodology to design the rate back to the customers who are putting the biggest burden on the system. We want to make sure these extreme users are paying their fair share. Ninety percent of your customers will not have a rate change.”

The board unanimously approved commissioning the firm Jackson-Thornton to perform two studies, which Williamson said will take up to five years. One study is on impact, and the other is on water rate. The cost of the studies is $8,400.

“This is a look at the rates and what impacts it has on the authority,” Williamson said. “Not that we’re having a rate increase. The big picture is we have a 20-year capital plan and know what we need to do to the system. You load that into the rates and say, ‘What does this look like, and what direction do we need to move towards in order for the system to stay solvent?’”

In other business, Williamson announced the authority received $64,000 from the sale of surplus equipment. The authority’s financials are in good shape despite the COVID-19 pandemic, he said, with revenues within $15,000 of last year’s revenue.

“That’s despite us not having penalties or service charges,” Williamson said. “We’re adding a lot of meters and having a really strong year in sales. To say we’re that close is really something, with us going through the middle of a pandemic.”