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About DEP Water Rates

The rate for water and sewer charges will increase by 3.35% starting July 1, 2014.

What the Rate Increase Means for an Average Customer

  • A typical single-family homeowner will see an increase from $991/year to $1,024/year for water and sewer bills—about $2.75/month (based on an average consumption of 80,000 gallons of water per year).
  • A typical multi-family unit with metered billing will see an increase from $644/year/unit to $666year/unit—less than $2/month (based on an average consumption of 52,000 gallons of water per year).

Rates are Lower Than Previously Projected Primarily Because:

  • Return of additional 10% of the rental payment ($22 million) to the System
  • Strong revenues that are $166 million ahead of plan, partially resulting from completion of wireless meter reading device initiative
  • Low interest rates that resulted in debt service of $153 million less than projected
  • Regulatory negotiations that have enabled us to better control our capital budget
  • Operational cost savings, including $34 million from the OpX program

Revenue projections are higher than planned due to the near completion of DEP’s meter replacement and automated meter reading (AMR) device initiatives.

  • There are fewer estimated bills and billing disputes because DEP has installed 820,000 wireless meter reading devices (96% of target); substantial completion of AMR installations has resulted in improved revenue collection, a 79% reduction in estimated bills since 2011, and a new seven year low in billing disputes received since 2008.
  • DEP has enrolled over 209,000 customers in the Leak Notification Program.

Regulatory and policy advances have enabled DEP better control its capital budget.

  • From FY 2002 to 2013, $15.5 billion (62%) of capital commitments were mandated
  • DEP has been successful working with regulators to moderate future mandates; as a result, the capital spending projections and required rate increases have fallen
  • $2.2 billion (17%) of FY 2014 to 2023 Capital Improvement Plan is mandated.