Water and Wastewater Rates
Water Rate Increases Taking Place in January 2018
Rate increases in the water/wastewater portion of utility bills will go into effect in January 2018. Below is more information on the increase amount and why the increase is taking place.
Components of Your Water and Wastewater Bill
Fixed User Charges
As of January 1, 2018, the following fixed water/wastewater user charges will be in effect for Naperville Water Utility customers:
These increased rates were approved in December 2017. For more information on the reason behind the rate increase, please read the 2017 Water Rate Study section of this webpage.
A graduated phosphorus surcharge was introduced in 2017 for wastewater customers. These phosphorus surcharge funds will be utilized to fund 50% of the Illinois Environmental Protection Agency-mandated Springbrook Water Reclamation Center improvements to reduce the amount of phosphorus discharged from the facility. Work on the improvements is anticipated to begin around 2025. The phosphorus surcharge will expire once funds collected are equal to 50% of the cost of improvements.
|May 1, 2017||Jan. 1, 2018||Jan. 1, 2019||Jan. 1, 2020||Jan. 1, 2021|
DuPage Water Commission/City of Chicago Costs
The wholesale water rate on customer bills is a direct pass-through of the water rate charged by the DuPage Water Commission (DWC), the City of Naperville’s water supplier. The wholesale water rate component is determined by the DWC based on the City of Chicago’s water rates. In 2017, the DWC wholesale water rate increased from $3.63 to $3.65.
Unincorporated Customer Surcharge
Unincorporated Naperville water customers pay a 10% surcharge on water rates. These customers' bills will have wholesale, retail and monthly customer service charge rates 10% higher than the rates in the above PDFs, which apply to incorporated Naperville customers.
2017 Water Rate Study - Updated December 8, 2017
Planning for the Future
In 2017, the Water Utility conducted a rate study to help plan for its financial needs through 2021. Throughout the study, the utility considered the costs of day-to-day operations, critical infrastructure improvements needed to ensure continued reliability and upcoming Illinois Environmental Protection Agency regulations that would require phosphorus removal improvements to the Springbrook Water Reclamation Center.
A new rate structure was put into place in May 2017 to meet these needs. However, during the 2018 budget process, discrepancies were noted in the Water Utility’s year-to-date financial performance that ultimately led to the discovery of three errors in the 2017 rate study. These errors resulted in the utility’s actual revenues and expenses differing significantly from what the rate study projected. Without intervention to fix the errors, the utility would be underfunded for the foreseeable future.
The rate increase going into effect on January 1, 2018, provides the utility with a structurally balanced budget where revenues fully cover operating expenses and capital improvement costs beginning in 2018. In addition, the new rates begin the process of rebuilding the utility’s required cash reserves within the coming years. The utility’s operating budget for 2018 is flat due to operational efficiencies, and through these efficiencies, the utility absorbed several hundred thousand dollars of increases in energy, healthcare and other expenses to keep utility rates as low as possible.
2018 Rate Changes
An average residential water/wastewater customer will see the following increase in their monthly bills through 2021.
|Year||Average monthly utility bill under current (2017) rates||Average monthly utility bill under approved (Jan. 2018) rates||Change to monthly utility bill|
Naperville already enjoys some of the lowest rates among other communities that source water from Lake Michigan, as seen below in this 2016 residential comparisons chart.
Rates still remain competitive even with the recent rate changes. In addition, the utility will be poised for long-term financial stability and will continue to provide the reliable service that is a hallmark of Naperville.