WASA Board Chairman Glenn S. Gerstell today announced that the Board of Directors approved a water and sewer rate increase of 5.5 percent at its September 1, 2005 Board meeting, which is less than the six percent increase originally proposed by WASA management.

Rate increases are needed to cover the cost of a ten-year, $2.1 billion capital improvements program to improve water and sewer services and pumping and treatment facilities, and to reduce combined sewer overflows into District waterways. Despite the increase in rates, WASA’s services continue to be priced competitively with other large East Coast utilities.

“Funds generated by the rate increase will be devoted to improving our water and sewer infrastructure – replacing lead service lines and old water mains, valves and sewers – some of which have been in the ground for over a century,” said Chairman Gerstell. “So as not to unduly burden our customers, the Board adheres to a policy of gradual and predictable rate increases.”

The rate increase will take effect with the first billing in October, the beginning of WASA’s new fiscal year (FY2006). For the typical residential customer, this will result in an increase of approximately $2.08 per month, based on an average monthly usage of 6,231 gallons of water. In addition, the District’s Right of Way/Payment in Lieu of Taxes (PILOT) fee has increased by about $.50 per month for customers. These fees are charged by the District of Columbia government to WASA, and are passed through as a separate line item on the customer’s bill.

The proposed rate increases were advertised extensively and discussed with residents at a number of public hearings and community meetings. “For more than a decade before WASA was established, there was disinvestment in the water and sewer systems. Virtually no significant improvements were made,” Gerstell said. “Since WASA ‘s establishment in 1996, it has been dedicated to investing in a modern, efficient operation, fully capable of meeting federal regulations and the needs of our customers.”

WASA serves approximately 121,000 customers in the District of Columbia.

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