How to Read Your Water Bill
and related topics…
Tom Heikkinen, General Manager
All about us…
INTRODUCTION
Our History
In The Beginning…
1870s:
Water from
Madison’s
private wells
and lakes was
unfit to drink
Need for fire
protection
1881:
Council votes
to establish a
public
waterworks
1882:
Waterworks is
installed.
Today: At a Glance
Population served:
Customer accounts:
Production wells:
Annual pumpage (2014):
Average daily pumpage:
Miles of water main:
Employees:
Annual revenue:
250,000
68,000 (metered)
22
10 billion gallons
28 million gal/day
830
125
$40+ million
MADISON MUNICIPAL
SERVICES BILL
Water Portion
• “base charge” according to meter size.
• “consumption charge” based on gallons used
Water Rate Allocation
InterDepartmental
3%
Supplies
Capital Assets
2%
6%
Purchased
Services
15%
Salary & Benefits
31%
Debt Service
27%
PILOT
16%
Water Utility PILOT Payment
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Average Annual % Change
1999 to 2013
2006 to 2013
Plant in service
7.1%
6.5%
Tax rate
-0.4%
2.4%
Sewer Portion
• $12.30 vs. $4.50 base charge.
• Reflects different ratemaking authority
Fees
• Landfill remediation:
For maintenance & environmental restoration of closed landfills.
• Fire protection charge:
An obligation of the Municipality to the Utility.
Stormwater Portion
•
•
•
“Base charge” is a fixed amount on every bill.
Other charges are based on the square footage of a parcel.
Pervious surfaces are charged a lower rate than impervious surfaces such as roofs
and driveways.
Who sets the rates?
Public Service Commission of
Wisconsin
Madison Common Council
• Water
• Fire Protection Charge
• Sewer
• Stormwater
• Landfill Remediation
• Madison Water Utility files a
rate increase application
every few years.
• City of Madison Engineering
Division submits new rates
annually.
Average Total Bill
Number of People
Water Used in Gallons
Dollar Amount
One
1,800 to 2,900 Gallons
$36 to $41.75
Two
2,900 to 5,000 Gallons
$41.75 to $53
Three
5,000 to 7,000 Gallons
$53 to $66
Four
7,500 to 10,000 Gallons
$66 to $80
Five
10,000 to 12,500 Gallons
$80 to $93
WATER CONSERVATION AND
EFFICIENCY
Our “20 by 20” Goal
58 gallons
per
person
per day
Population
Residential
water use
Indoor Water Uses
28%
of indoor use
Toilet rebate program
Water & energy
• 1 billion gallons of
water saved
=
2 million fewer kwh of
electricity used
• This is enough
electricity to power
250 Madison homes for
an entire year!
AMI: Advanced
Metering Infrastructure
Improved Cash
Flow
Industry
Leadership
Enhanced Data
Management
Improved
Customer
Service
Improved
Water
Resource
Management
The big leap… from this
To this!
• 65,000 customers
• 90% retrofit by contractor
• 10% meter replacement in-house with solid state technology
• Switch to monthly billing
• Convert to gallons from CCF
• Meter Data Management system to integrate
with SCADA, GIS, etc.
• 68K endpoints, 116 repeaters, 10 collectors
• Budget: $14M
Leak Detection
• More than 1,000
customers contacted
• Leaks as high as 300+
gallons an hour
• Continue to call and
investigate high usage
• Emergency shut-offs
#EveryDropMadison
Daily breakdown
Hourly breakdown
Year over year comparisons
High usage alerts
Education & Outreach
Where we are headed
RATES
Utility Bill History/Forecast
Average Customer Perspective
Monthly Billing
Average Monthly Residential Water Bill by Year
$30
$25
Amonut
$20
$15
$10
$5
$2005 2006
2007 2008
2009 2010
2011
2012
2013
Year
2014
2015
est
2016
est
2017
est
2018
est
2019
est
Rate Proposal
5-Tiered residential rate
Low base charge (60% cost recovery)
No “declining block” for non-residential
Class based rates – actual demand ratios
What’s in the pipeline…
WATER INFRASTRUCTURE
Infrastructure Renewal
• Crews respond to ~250
main breaks a year.
• Nearly half (~400 miles)
of Madison’s water
mains need
replacement
2000-2010 -- Rapid Increase in Water Utility
Investment
Rebuilding and renewing
Pipeline Project Budget (in millons)
16
14
12
10
8
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019* 2020*
*projected budget
Innovation
Structural Cured in Place Pipe (CIPP) allows new main to be installed
inside an old main, without tearing up an entire street.
Other Initiatives
Reducing water loss
Energy saving studies
Source water protection
Facility upgrades
QUESTIONS?