Page 6 - 2023 Summer BPU Connection-WQR FINAL v10 PDF

2023 Water Rate Proposal

BPU: Competitive Rates

Background: • BPU has not increased water rates since 2013, while other utilities
have repeatedly proposed and implemented increases.
• An outside Cost of Service (COS) Rate Study has
been conducted to determine if existing rates will • Water rates are competitive with other surrounding utilities.
support future water utility operating and capital Typical Monthly Water Bills
needs over the next five years.
• A public hearing process has been initiated to Bonner Springs, KS $81.49
determine what, if any, water rate adjustments Kansas City, MO $69.65
should be implemented.
Lawrence, KS $63.59
• Meetings and a public hearing process will Topeka, KS $58.15
provide opportunities to discuss rate adjust-
ments and capital improvement projects BPU Proposed $57.79
required to meet the future water needs of our BPU Existing $54.78
community. Water One $51.95
Liberty, MO $48.17
What’s Being Proposed: Lee’s Summit, MO $46.37

• An external study recommends a 6% increase in Gladstone, MO $43.57
water base rates beginning July 1, 2023, Olathe, KS $41.30
6% on July 1, 2024, and 6% on July 1, 2025. Independence, MO $35.96

• Adjustments will vary among customer groups $0 $20 $40 $60 $80 $100
based on cost of service and usage levels. *7,000 Gallons Billable Water Usage
**748 Gallons = CCF
Why This Is Necessary:

• BPU’s water system needs $135 million in capital BPU: Fiscal Responsibility
improvements to keep it running efficiently, and • BPU continues working to reduce spending, increase efficiencies, and
to meet regulatory requirements as well as future improve overall customer service.
demand.
• Inflationary pressure on costs of outside services, BPU: A Community Asset
materials, and labor have increased. • One of the top-ranked water utilities in the country, BPU has provided
affordable reliable water to the community for over 100 years.
• Postponing improvements may cause service
disruptions, impact public safety, and cost more. • Servicing 53,000 water customers – with one Water Treatment Facility,
three pump stations (72 MG a day), 1,000 miles of water lines, 6,200
• BPU will not be able to adequately finance capital fire hydrants - 20 MG of water in reservoirs/ tanks.
projects and meet reserve and debt service
requirements without additional revenue. Critical Capital Improvement Projects:
• Without a strong credit rating, BPU won’t be able (2023-27) = $135 million
to borrow money for capital improvements at a • Water Distribution = $46.9 million
reasonable rate.
• Water Storage and Transmission = $44.2 million
Impact on Customers: • Water Equipment = $4.3 million

• The average residential customer’s bill will • Water Services = $13.8 million
increase approximately $2.00 a month in 2023 • Water Facility Improvements = $3.1 million
under this proposal. This equals approximately • Water Production Projects = $11.2 million
7 cents a day.* • Water Meters = $3.5 million

*will vary depending on consumption use • Water Developmental Mains = $1.8 million

6 | SUMMER 2023