(Washington, DC) The District of Columbia Water and Sewer Authority (WASA) Board of Directors has voted to increase water and sewer rates by 2.5 percent beginning October 1, 2003 – this approval nearly cuts in half the original management proposal of a 4.4 percent increase for this October and 5.0 percent increase in October 2004. The Board nixed the proposal for October 2004 altogether.

At its monthly meeting on July 3rd, the full Board heard a recommendation from its Retail Rates Committee on the two-year rates proposal. The Committee, composed solely of District residents, recommended to lower the proposed rate increase for this October and not to approve an increase for October 2004. The Committee said it would review later this year and next year WASA’s financial position to consider future increases.

Board Chairman, Glenn S. Gerstell said after examining WASA’s better than projected financial performance this year, "It would be prudent to pass cost savings directly to our customers." Gerstell, who also chairs the Retail Rates Committee added, "The Board closely scrutinized WASA’s financial position and recognized that cost savings have occurred through lower chemical costs due to improved performance at the Blue Plains Advanced Wastewater Treatment Plant; control of overtime usage and savings in contractor costs by retraining and utilization of current employees. These operational savings directly translate into cost savings to our customers by lowering a rate increase, which is needed to fund WASA’s ten-year, $1.6 billion capital improvement program (CIP). This is not unlike a family that saves for college educations – we, too, must save to fund our capital program for infrastructure improvements."

Infrastructure improvements are required for both water and sewer systems after many years of disinvestment. WASA’s CIP is well underway and must continue to meet regulatory requirements and ensure safe and reliable delivery and treatment systems for the District. Additionally, this increase in slightly less than the current rate of inflation.

Effective October 1, 2003, for a typical residential customer, the monthly bill will increase approximately $0.92, from $41.08 to $42.00 per month, as opposed to approximately $1.50 more per month to $42.58 under the original proposal abandoned by the Board.