In November 2018, City of Toledo voters established the Regional Water Commission in the City Charter. The Commission consists of the Toledo director in charge of public utilities and the director or commissioner in charge of public utilities from each contracting community. A primary duty of the Commission is to propose water rates for customers in the system. Toledo and each of its contract communities have the power to add additional charges for the operation and maintenance of the system within their community, often referred to as the retail rate.
On November 26, Toledo City Council approved Ordinance 538-19 which revised water rate schedules for Toledo and its regional customer communities for years 2020 through 2023. The Commission is expected to gradually equalize the rates across the system, although minor differences could exist based on the cost to deliver water to the community. These revised rates begin to more accurately reflect the costs of water treatment, actual use, and continued infrastructure investment. Toledo rates are expected to reflect programs for water affordability and lead line replacement. The ordinance also establishes monthly billing beginning in 2020, eliminates minimum water charges, and maintains senior, low income, and disabled homeowner discounts.
Rates for water customers residing in Toledo and non-contract community areas of Lucas County would be based on actual water consumption plus a fixed monthly charge. Fixed charges are designed to recover costs associated with providing “fixed costs” of service for capital facilities (pump stations, reservoirs, transmission lines, wells, etc.). Fixed costs occur whether or not any water is used. The consumption charge is based on a two-block declining rate structure, meaning the more water a customer uses, the cheaper the rate. Block 1 is for the first 160,000 cubic feet of water, and Block 2 is for use above 160,000 cubic feet. Based on average single family water use (426 cubic feet per month), the monthly increase for residential users would be 6.4 percent in 2020, 5.7 percent in 2021, 7.8 percent in 2022, and 7 percent in 2023. The specific net rates and fixed charges are as follows:
Rates for water customers residing in Toledo and non-contract community areas of Lucas County would be based on actual water consumption plus a fixed monthly charge. Fixed charges are designed to recover costs associated with providing “fixed costs” of service for capital facilities (pump stations, reservoirs, transmission lines, wells, etc.). Fixed costs occur whether or not any water is used. The consumption charge is based on a two-block declining rate structure, meaning the more water a customer uses, the cheaper the rate. Block 1 is for the first 160,000 cubic feet of water, and Block 2 is for use above 160,000 cubic feet. Based on average single family water use (426 cubic feet per month), the monthly increase for residential users would be 6.4 percent in 2020, 5.7 percent in 2021, 7.8 percent in 2022, and 7 percent in 2023. The specific net rates and fixed charges are as follows:
Rates for each contract community will be based on monthly wholesale consumption. Over the coming years, the cost of water sold to contract communities will gradually converge to a common wholesale rate. Surcharges imposed by Toledo as part of the prior water contracts will also be eliminated under the new 40-year contract. During the rate equalization effort, some communities may see rate decreases and others rate increases. This reflects the differences the suburban communities were paying. Community wholesale rates are as follows, but it should be noted additional charges may be added for local service to cover operation and maintenance:
 | Tim Schneider As Manager for Local Government Advocacy, Tim Schneider advocates for local policies and laws that safeguard and foster a pro-business environment in the Toledo Region. Tim has more than 10 years of legislative and public policy experience with the local, state and federal levels of government. |
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