Boise’s water company wants to raise rates 24%. This is why, and what you can do about it
Boise residents could see a substantial increase on their water bills this year.
Veolia, the Treasure Valley’s largest water supplier, filed a request with the Idaho Public Utilities Commission in September to increase rates for water services by 24.1%.
Residential customers would see an average increase of $7.59 on their monthly bills, about 25 cents per day. Commercial customers’ increases would average $27.92 a month, and public authority bills would increase $25.46, according to Veolia, formerly Suez.
The company said in its application that it seeks additional revenue to recover increased operating expenses and costs associated with plant additions. Veolia says it spent $70 million, an average investment of $660 per customer, over the past two years on improvements in water quality, storage capacity and fire suppression.
It’s unclear when the increase would take effect. A previous news release from Veolia said it would take several months for the PUC to accept, reject or modify its request.
Customers may learn more about the proposed rate change and ask questions at a public workshop at 6 p.m. Tuesday at the PUC’s office at 11331 W. Chinden Blvd., Building 8, Suite 201-A.
Any comments submitted by those who attend will not become part of the formal record. Residents will get a chance to submit formal testimony at a hearing held at a later date.
If the rate increase is approved, the company’s revenues would increase by 23.4% or $12.1 million per year, according to the request. Veolia’s rate of return under the proposal would be 7.8%, which it said is a “fair and reasonable” return on the utility’s investment in property used to provide water services. The company’s current rate of return is 4.6%.
A spokesperson for the PUC did not immediately return a phone call about the proposal.
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