Capital Facilities Charge Capacity Rental Program - Update

The January 1, 2012 implementation date for the revised Capital Facilities Charge Capacity Rental Program (“Program”) is fast approaching.

The revised Program applies to residential, multi-family, commercial and public authority customers.  Water and sewer system Capital Facility Charges are collected at the time a property is connected to the water and/or sewer systems.  These charges are expressed in equivalent residential units (ERUs) and represent an estimation of the proportionate share of the general infrastructure improvements (e.g. treatment plant, water reservoir) that a connecting property will use.   In cases where a property is using more capacity in the water and/or sewer systems than originally purchased, a capacity rental charge will be added to the bill.

The Program is being revised in 2011 to reduce the impact of additional use on property owners.  In addition to the annual averaging of consumption, which reduces the impact of peak demand and allows property owners the benefit of lower consumption periods, the Board is adding a “buffer” and “grace credit” to the rent computation.  The buffer increases paid capacity by 20% for purposes of calculating rent.  The grace credit allocates an additional ERU to each customer before rent begins to accrue.  The impact will serve  to reduce, or, in many cases, eliminate rent from the bill of customers.

The Board has determined to credit all rent paid under the prior version of the Program.  Customers who paid capacity rent in 2010 will receive a credit against any future capacity rent due in the amount of the capacity rent paid.  If no new capacity rent is due, the amount will be refunded by payment directly to the property owner.

During the remainder of 2011, monthly water and sewer bills will continue to indicate where payment can be expected based on current consumption records.  Customers are free to purchase additional units of capacity in the water and/or sewer system to minimize capacity rent.  Remember also that conserving water will save you money on rates and capacity rent on both your water and sewer bills!