The Metropolitan Utilities District board today approved a 2020 budget with no natural gas or water rate increases. However, customers will be seeing higher bills.
The water bill for the average residential customer will increase due to a previously approved water rate increase that will go into effect on January 2nd, 2020. The utility reports water use for the 2020 average residential customer is budgeted at 78,540 gallons, compared to 79,288 gallons in 2019. A customer with a 5/8-inch water meter will see a projected water bill increase of $1.69 a month, or about $20 a year.
Gas usage for the average residential customer is budgeted at 781 therms in 2020, the same as in 2019. An average residential customer will see a projected increase of $1.289 a month, or about $16 a year.
The average residential gas and water customer will see a projected increase of about $36 a year, or $3 a month.
“We strive to find a balance between rate design and operational efficiencies while ensuring that we provide safe, reliable and cost-effective service to our customers,” said M.U.D. President Mark Doyle. “It also is critical that the District continues to responsibly invest in infrastructure replacement to ensure the reliability of our gas and water distribution systems.”
As compared to 41 other U.S. utilities that participated in the 2019 Memphis Light, Gas and Water Survey, the District ranked fifth lowest in cost for residential gas bills and 14th lowest for residential water bills.
“The District’s affordability ranking in 2020 should be minimally impacted, in light of the fact that infrastructure replacement funding needs are being addressed by other utilities throughout the nation,” said Chief Financial Officer Joseph Schaffart.
M.U.D. is one of the few water utilities to operate a system with three water plants, which significantly enhances reliability and the ability for the communities served by the District to grow.