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Water Rates Questions & Answers
Are residential and commercial water rates going up?
Yes. On November 24, 2008, the Seattle City Council voted to increase residential and commercial water rates for 2009 through 2011. Both the base service charge (excepting very large meters) and the commodity portion of rates increased January 1, 2009, and again on March 31, 2009 (due to a temporary surcharge further described below). Rates will also increase on January 1, 2010 and January 1, 2011.
In February 2009, the Council voted to approve a temporary surcharge on residential and commercial rates as follows:
Temporary Surcharge on Water Rates March 31, 2009 – December 31, 2010
Pursuant to City of Seattle Ordinance Number 122913, a temporary surcharge of ten and two tenths percent (10.2%) will be added to the cost of water service – both the base service and water consumption charges – supplied to residential and commercial customers for the period March 31, 2009 through December 31, 2010. Ordinance Number 122913 was passed by the City Council on February 17, 2009 and signed by the Mayor on February 23, 2009.
The title of the ordinance is: AN ORDINANCE relating to revenues and expenses of the City's water system in connection with implementing a court order; authorizing a temporary surcharge on water rates to provide revenue to make refunds to water ratepayers and to pay increased taxes and other expenses, amending appropriations for the Water Fund in the City's 2009 Adopted Budget in accordance therewith, and amending Seattle Municipal Code Chapter 21.04 in connection with the surcharge.
How much will my bill increase?
The monthly bill for a typical residential customer using 5.5ccf per month will increase $5.96 in 2009 (compared with the typical 2008 bill and including the temporary surcharge), $2.35 in 2010 (compared with the typical 2009 bill and including the temporary surcharge), and $1.09 in 2011 (compared with the typical 2010 bill). Detailed rate schedules can be found using the Water Rates link at the bottom of this page.
Commercial commodity rates and the base service charge for ¾" -6” meters are increasing each year from 2009 to 2011. The base service charge for 8” -24” meters will increase in 2009 and 2010 by 10.2% to reflect the surcharge described above but will then return to 2008 levels. Detailed rate schedules can be found using the Water Rates link at the bottom of this page.
Are wholesale water customer rates going up?
Rates for wholesale customers will change in accordance with wholesale contracts, which define cost of service methodologies that determine how much the water system can charge for wholesale service.
What is the Base Service Charge?
This is a fixed monthly fee, determined by the size of the water meter installed at your property. This fee helps more equitably distribute service costs that are not related to the volume of water used, such as bill production, customer service, water service inspections, and meter reading, maintenance and replacement. Most single family residences are served by ¾" meters, which are the smallest and least expensive available.
Why is my bill increasing?
In addition to the temporary surcharge described above, the reasons include:
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- • Continuing capital needs: Examples include the reservoir covering program, a permanent pumping plant at Chester Morse reservoir, a fish hatchery to meet federal regulatory requirements on the Cedar River, and replacement of aging water system infrastructure. Benefits of the projects include increased security, improved water quality and the creation of more than 70 acres of open space.
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- • Continued strengthening of SPU’s financial policies, such as capitalization guidelines: These policies provide stability and lower rates in the long term. In November 2008, the Water Fund received a ratings upgrade on its bonds from AA to AA+, which will result in lower interest rates for our rate payers.
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- • Other factors: These include inflation, which was much higher than had been assumed in the last rate setting process, and expansion of the low income assistance program.
What do our water rates and charges pay for?
Water rates pay for the costs of storing, treating, and piping water from the Tolt and Cedar Watersheds, as well as work to minimize environmental impacts of the water system. They also pay for customer service and security costs, the administrative costs of running the water system, and various taxes imposed on the water system.
Why are rates for residential and commercial customers outside Seattle’s city limits higher than rates inside the city limits?
A small portion of the Department's direct service area lies outside the city limits and higher rates are charged there to reflect higher costs of serving this area. Reasons for these higher costs include:
Development outside the city is less dense and a greater percentage of the water delivered outside the city is pumped. Both factors cause higher capital and operating costs (longer water mains, more pumping) per unit of water delivered.
Field crews, meter readers, inspectors, and other employees, as well as vehicles and equipment, must travel farther to work on parts of the system that serve outside city customers.
For Shoreline Customers Only: Why is there a different set of rates for Shoreline customers?
In 1999, Shoreline began charging Seattle Public Utilities a franchise fee on water service SPU provides to Shoreline residents. This fee increases SPU’s costs of serving Shoreline customers, and SPU is passing this cost on directly to them as a separate item on their bills. All of the revenues from this fee are paid to the City of Shoreline. Neither Seattle nor any water customer outside of Shoreline receives a benefit from this fee.
For Lake Forest Park (LFP) Customers Only: Why is there a different set of rates for LFP customers?
Seattle Public Utilities (SPU) has been providing water service to about 400 out-of-city retail customers since 1963 that are now located within the incorporated boundaries of the City of Lake Forest Park. The City of Lake Forest Park has requested a franchise agreement from SPU which formalizes the terms under which SPU operates in the City’s rights-of-way and includes a requirement that SPU collect a franchise fee from its residents through the water utility bills and pay it to the City of Lake Forest Park. Neither Seattle nor any water customer outside of Lake Forest Park receives a benefit from this fee. The new water rates for Lake Forest Park residential and commercial customers go into effect November 1, 2009. Learn more >
Why are water rates higher in the summer than in the winter? Is this a penalty for summer water use?
While Seattle has plenty of water in the wintertime, our water system is limited by its ability to supply water during the summer when demand is at its highest and rainfall is at its lowest. At that time, we depend on storage in our mountain reservoirs to meet demand while leaving enough water in the rivers for fish. The higher summer rate encourages customers to use water prudently at a time when demand is high and rainfall is low.
Is there assistance for low-income customers?
Qualified low-income/elderly/disabled customers receive a 50 percent discount on their water bill. Please see the Payment Assistance site for more information.
What can I do to reduce my water consumption?
For most households, the vast majority of water is used indoors. You can get the biggest water savings in your home by installing efficient fixtures and fixing leaks. The choices you make in your yard can also save you money on your water bill.
Visit the Saving Water Partnership website or call (206) 684-SAVE (7283) for advice on saving water, and find out if you are eligible for rebates on water efficient appliances and improvements to irrigation systems.
What number do I call if I still have questions?
You may call Customer Service at (206) 684-3000.
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Water Rates
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