Amid Coronavirus And Public Outcry, Massachusetts Utility Raises Rates
Despite the importance of handwashing and sanitation to combat the novel coronavirus, at least one water utility will be raising its rates as consumers continue to battle it.
The Springfield Water and Sewer Commission in Massachusetts elected to approve a 9.5 percent raise in water and sewer rates for July 1, raising the average household’s bill by an estimated $106.32 per year.
“The increase drew public opposition before and during a hearing on June 2, and also triggered a petition signed by more than 950 people calling for a freeze on the rates during the coronavirus pandemic,” MassLive reported. “[Executive Director Joshua Schimmel] and other commission officials said the rate hikes were crucial to properly maintain and protect the drinking water and wastewater treatment system.”
Drinking water and wastewater utilities across the country have elected to freeze rates and suspend cutoffs as the coronavirus spreads across the country, social distancing mandates persist, and millions of Americans struggle financially as a result. In Palm Springs, CA, for instance, the local utility decided to suspend a planned rate raise.
“The Desert Water Agency’s recently approved budget, which takes effect on July 1, will not include a previously planned rate increase due to concerns of the financial impacts to customers during the coronavirus pandemic,” according to the Desert Sun. “Raising rates now during this time of economic hardship for so many of our customers was not the appropriate thing to do,” the agency’s board president, Joseph Stuart, said.
At the same time, water rates may be a critical source of income for local governments that are also feeling the economic impact of the pandemic. In Petersburg, VA, the loss of water rates is contributing to a concerning economic outlook.
“When it comes to personal property — car tax, water bills — and real estate taxes, ‘people are not paying these things as quickly as they normally would,’ City Manager Aretha Ferrell-Benavides said,” according to the Richmond Times-Dispatch. “She didn’t provide a total of COVID-19 revenue losses, but city officials have said the … operating budget that begins July 1 is down $2.27 million… These cuts mean fewer services for local residents, who also have struggled to pay their bills during the shutdown.”
In Springfield, the rate increase is being framed as a necessary measure to ensure continued water and sewer service at this critical time, as opposed to a measure that could leave some of the most vulnerable people without a primary line of defense to combat coronavirus.
“The Commission recognizes the current strain the pandemic has placed on many of our customers, but the ability to deliver safe and reliable water and sewer service in order to protect public health and safety cannot be compromised,” Schimmel said, per MassLive.
To read more about how drinking water and wastewater utilities set their rates, visit Water Online’s Funding Solutions Center.