2010 Rate Information - CT
Dear Aquarion Customer:
On March 15, 2010, Aquarion will ask the Connecticut Department of Public Utility Control to approve a rate increase of 17.64% due to substantial increases in the costs of delivering safe, pure water to our customers, and water for fire protection to the cities and towns we serve.
However, the actual impact on your bill will be less. It already includes a 1.36% “Water Infrastructure and Conservation Adjustment,” or “WICA,” surcharge which enables us to make critical system improvements. Therefore, the net initial increase would be 16.28%. For the typical Aquarion residential customer using 18,000 gallons of water per quarter, this will amount to an estimated daily increase of about 25¢, or $7.46 per month, Your water will still cost you less than a penny per gallon (0.75 cents).
We also would like to limit the size of future increases. Therefore, we are also proposing relatively small rises of 2-3 % for the second and third years.
The rising cost of reliability
We fully appreciate that our request comes in the midst of a difficult economic environment affecting many of our customers. Unfortunately, even in tough economic times, the systems carrying water to your home continue to age, threatening the supply and quality of the water you depend upon for so much. Since 2007 we have invested $102 million in replacing and upgrading key systems – water mains, storage tanks, treatment plants, dams, and pump stations and other essential facilities throughout our service area. These improvements have enabled us to raise system efficiency while also protecting its integrity – essential steps in sustaining the safety and reliability of our services.
In addition to these investments, other costs like the prices for the electricity that powers our pumping systems along with the chemicals and processes needed to treat and test your water have risen as well. These and other expenses have further contributed to unavoidable increases in Aquarion’s operational and maintenance costs
Meanwhile, we have worked hard to keep costs in check wherever possible. In recent years we have reduced our work force by 20%, reduced our vehicle fleet program by 17%, brought down insurance expenses, cut back on employee benefits and found other savings throughout our operations. We also expanded our customer hardship program to further assist customers who are facing financial difficulties.
Maintaining our commitment
While the costs of our operations continue to change, what remains constant is our commitment to providing you with a reliable source of safe, pure water. For the third year in a row, our customers have validated our performance in this essential regard, giving Aquarion the highest rating among all regulated Connecticut utilities in the Annual Consumer Scorecard program conducted by the Department of Public Utility Control.
We also continue to actively promote the health of the communities we serve, and in ways that go beyond supplying water to their households, businesses and fire safety systems. For example, we have a long history of environmental initiatives such as supporting Earth Day activities, watershed preservation projects and wildlife protection programs.
Keeping you informed
Sincerely,
Charles V. Firlotte
President and Chief Executive Officer
Aquarion Water Company of Connecticut
