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Friday, November 22, 2024

Upcoming water decisions and a four-year rate plan for Water Rates. What Does That Mean for Customers?

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Faucet | Pexels by Steve Johnson

Faucet | Pexels by Steve Johnson

BONDURANT, Iowa (February 17, 2023) –The City of Bondurant has contracted with Des Moines Water Works for nearly two decades for wholesale water production. Des Moines Water Works has increased rates consistently over the past several years, which affects customers in Des Moines, Pleasant Hill, Windsor Heights, and a handful of other small communities that purchase water directly from the utility.

Due to the cost of infrastructure improvements and treatment and increasing demand for water supply, over the past few years there have been discussions amongst several cities (including Bondurant) Des Moines Water Works, and West Des Moines Water Works related to a regional water utility or regional water governance. Parallel to those discussions, the City has been exploring the possibility of producing and treating water independently again. The reason the City is pursuing a water facilities study is to determine the feasibility of producing its own water, which could give the City as much direct control over costs as possible. Preliminary results are proving to be very encouraging. The City is approaching a fork in the road where a determination will need to be made. There are major capital investments on the horizon, regardless of which path is pursued.

While conducting financial modeling and engaging in regional discussion, it became clear that the fiscally responsible thing to do would be to create a four-year rate plan to address operational and capital needs. The rate plan is needed regardless of whether the determination is made to participate in regional water production and governance or whether the City re-establishes independent water production. Below is a table showing the four-year rate plan.

Original source can be found here.

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