| The MSD Board has approved a one-time rate refund credit
for residential customers, who used excessive amounts of water during the recent drought.
(Please see the answers to a set of frequently
asked questions regarding this credit.)
Part of MSD’s charges is based on volume
usage – the amount of water that flows into the sewer system for treatment. MSD
charges $1.45 per thousand gallons of water. The volume charge is discounted 15 percent,
on a regular basis, to allow for normal amounts of water that doesn’t enter the sewer
system.
However, the drought of 1999 was an abnormal
event – the worst since 1931. MSD’s Board has decided to credit the excess
volume billings (water used for lawn irrigation) for the two driest months of the drought
– August and September.
Residential customers will be sent application
cards that can be returned to MSD for refund credits on a future billing. Please refer to
the attached fact sheet for details.
Thank you.
PROPOSED DROUGHT BILLING
REFUND FACT SHEET
- The drought of 1999 has been the most severe on
record since 1931.
- Only 0.75 inches of rain fell between June 28 and
October 9, with August and September being the driest months.
- Research using September’s billing cycle
shows that MSD residential customers used approximately 382,000,000 more gallons of water
for that billing cycle than in the same period in 1998.
- This represents an increase in revenue of
$553,000 for September 1999 over the same period in September 1998.
- Comparison of MSD residential billings for the
month of September 1999 with an average billing for the September 1997-98 billing periods
show that 58.7% of MSD’s residential customers used more water. This would be the
average percentage eligible for a refund.
- Although research shows some refunds as high as
$200.00, many are as low as $1.45. The average refund for all billing districts will be
about $13.00.
- A typical refund would be calculated by averaging
the monthly usage for August and September of 1997 and 1998, both considered normal
summers. That average amount is subtracted from the August/September 1999 usage (if that
amount was higher) and the difference is considered in computing the refund amount.
- Each residential customer will receive a postcard
in an upcoming bill that will explain the refund offer. Those returning the postcard will
have their billings calculated and will receive a refund for the August/September billing
that will show up as a credit in a future bill.
- Only residential customers are eligible for the
refund.
- Residential consumption comparison in gallons and
dollars and potential refund.
August 1999 1,286 billion gallons
August 1998 1,027 billion gallons
259 million gallons = $375,000 Revenue
September 1999 1,570 billion gallons
September 1998 1,188 billion gallons
382 million gallons = $553,000 Revenue
TOTAL $928,000 Revenue Refund
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