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About DEP Water Rates

The rate for water and sewer charges will increase by 2.97% starting July 1, 2015.

What the Rate Increase Means for an Average Customer

  • A typical single-family homeowner will see an increase from $1,025/year to $1,055/year for water and sewer bills—about $2.50/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 $666/year/unit to $686/year/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

  • The Mayor reduced the rental payment by $82 million; this reduction is equivalent to a 40% return of the System’s FY 2015 rental payment
  • Revenues are projected to be $82 million ahead of plan, partially resulting from completion of the automated meter reading initiative
  • Additional revenue of $83 million from an Exxon Mobil judgment carried forward from FY 2014
  • Low interest rates reduced projected debt service by $195 million
  • Operational cost savings and underspending have a benefit of $71 million in FY 2015

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 over 817,000 wireless meter reading devices (97% of target); substantial completion of AMR installations has resulted in improved revenue collection, an 81% reduction in estimated bills since 2011, and a new eight year low in billing disputes received since 2008
  • DEP has enrolled 230,000 customers in the Leak Notification Program

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

  • From FY 2005 to 2014, $12.5 billion (59%) 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
  • $3.5 billion (23%) of FY 2015 to 2025 Capital Improvement Plan is mandated

DEP and the Board have introduced several billing programs

  • Customers receiving Home Energy Assistance Program (HEAP) credits or New York City Department of Finance exemptions for seniors or the disabled will automatically receive a credit equal to $115.89, which is equivalent to a quarter year of the minimum charge
  • DEP will be offering monthly billing to all customers as of July 1st, and customers who enroll in monthly eBilling—meaning those that enroll in monthly billing and opt to receive such bills electronically—will receive a credit of $10 after receipt of their third monthly eBill
  • The minimum charge was frozen at FY 2014 rates for the second consecutive year at $0.49 per day for water, plus the wastewater charge of 159% of water charges, or $1.27 in total