Cleveland Water Investments Create 0% Rate Increase

Monday, October 19, 2015

CLEVELAND – Today, the Cleveland Division of Water announced that investments made in the Division’s infrastructure have led to legislation submitted before City Council that would establish a 0% rate increases for the years 2016, 2017, and 2018. This legislation will lock water rates in place for the next three years as the Division enters into the next five year rate cycle in 2016 with small rate increase in 2019 and 2020.

“Cleveland Water takes its responsibility to deliver a reliable supply of safe drinking water at an affordable price seriously,” said Director of Public Utilities Robert Davis. “We have worked hard to identify ways to improve service levels and become more efficient. If this ordinance is approved by Cleveland City Council, beginning in 2016 and continuing through 2018, customers should not see any increases in their bills unless they change their water usage.”

In the years 2019 and 2020, average residential users – customers who use about 2 MCF per quarter – may see their bills increase by between $1.30 and $2.60 per month depending on how far and high they live from Lake Erie. Historically, water rates have increased 7% per year from 1993 to 2015.

Today’s announcement of a 0% rate increase for the next three years was achieved through a combination of hard work and smart planning. A rate increase passed in 2011 provided the base necessary to better align rates with fixed costs, stabilize customer service operations, effectively implement the Division’s Automated Meter Reading (AMR) program, support the continuation of the capital program, and improve operational efficiency.

Over the past 30 years, the Cleveland Division of Water has invested more than $1.6 billion in infrastructure upgrades. As a result, the Division has achieved four, fully modernized interconnected water treatment plants. The Division is no longer facing the same financial burden as many other water utilities across the country and is currently shifting focus to upgrading underground water mains. Over the next nine years, the Division will invest more than $235 million in replacing these mains, all while maintaining reasonable water rates.

For more information, visit the Cleveland Division of Water blog “Straight from the Tap” at http://clevelandwater.com/blog

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