CPFUA 2 year anniversary much more costly to some families than others

How the CFPUA targets families with rate increases

When the Cape Fear Public Utility Authority took control of our water and sewer utilities in 2008 the board implemented a tiered rate structure. Under the tiered rate structure, families pay a higher price per gallon as more water is used. Families with more members use more water and in turn pay a higher price per gallon. Since its inception larger families have argued they are unfairly discriminated against under the tiered rate structure. Two years of rate increases under CPFUA’s reign have proven them right.

Below is an illustration which shows how rate increases affect families based on size. Keep in mind that while each family below is using the exact same amount of water per person, there is a marked difference in the price increases they’ve seen.

The usage rates are calculated using the exact same amount of water per person. Based on given data in the CFPUA’s Water and Sewer Rates Briefing December 2008 for basic water needs.

Using the City of Wilmington’s former usage rate of $1.87 as a baseline, the typical family with 1 or 2 members have seen the rate they pay rise 19%, to $2.22. A family with 3-4 members have seen the price they can pay jump 80%, from $1.87 to $ 3.36. A family with as few as 5 members have seen the price they can pay skyrocket 141%, from $ 1.87 to $4.50.

Does the CFPUA target families with rate increases? Absolutely it does, and proudly so. Families claiming rate discrimination find no sympathy from the CFPUA leadership.

CEO Matt Jordan readily admits larger families, while using water at the exact same rate per person as smaller families, and who are even conserving water, will still pay a higher price per gallon under the tiered rate scheme. He has stated in the past that under the tiered rate scheme some families must pay more so that others can pay less. Jordan’s cohort, CFPUA Board Chairman Gene Renzaglia, is also an outspoken supporter of the tiered rate scheme.

With board members that are appointed rather than elected, citizens are left with virtually no voice for change. Fortunately for the families of New Hanover County, not all CFPUA board members are drinking the cool aid served up by leadership. There are rumblings among some board members which may lead to changes in the rate structure.

Until then, as water rates continue to spiral upward at staggering pace, discrimination against families in water rates will remain the gold standard for the Cape Fear Public Utility Authority.