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In October, the MSD Board 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.)
On Monday, December 13, MSD began sending refund information cards
to those customers who are eligible for a refund credit. Eligibility
was determined by an increased usage of water during the months of
August and September 1999 over an average of the same two –month
period in 1997 and 1998.
For example, if a residential customer’s consumption for
August/September 1999 was 10,000 gallons more than the average
consumption for the same billing period for the previous two years,
the property owner will be eligible for a $14.50 credit on future
billings. The refund credit application card being sent by MSD must be
filled out and returned before the credit is applied.
The following facts will provide additional information regarding
this MSD action.
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
If you have additional questions, please contact MSD Community
Relations and Emergency Response Director Bud Schardein at
502-540-6319.
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