American Water Works Association Classifies CFPUA Water Rates Unfair

Some CFPUA board members agree. Leadership defends the status quo.

According to the The American Water Works Association(AWWA), the Cape Fear Public Utility Authority’s tiered water rates are unfair. For over two years families have complained to the 11 member CFPUA board they were being unfairly punished with higher rates. Now it appears the AWWA agrees.

The AWWA says tiered rate structures like the CFPUA’s can potentially be punitive to large families, charging them a higher prices when they may in fact be very efficient water users, and thus not deserving of a higher unit rate. It goes on to say tiered rates should not punish water usage where there is no discretion in usage. The CFPUA’s tiered rate structure fails that basic standard of fairness.

Under the CFPUA rate larger families can pay significantly higher prices while using the same amount of water per person. These families are forced to pay a premium even while conserving water. For example, a typical family of 2 or less would pay 1st tier rates of $2.22 for essential water needs. A family with 3 members, using the same amount of water per person as the family of 2, would pay 2nd tier rates of $ 3.36. Likewise, a family of 5 can easily the 3rd tier rate of $ 4.50 for basic water needs.

County Commissioner and CFPUA board member Bobby Greer understood the inherent flaws in the rate structure and has attempted to change it virtually since it’s inception. A more recent addition to the board, City Councilman Charlie Rivenbark, has expressed concern as well. Unfortunately, Greer’s attempts to change the rate structure have been thwarted under the current leadership.

CFPUA Board Chairman Gene Renzaglia defends the tiered rate structure. Treasurer Burrows Smith does as well. While larger families pay a premium for their most basic water needs, they’ll find little compassion from Smith. “They’re the ones that have the family. It’s their choice.”, he said.

Many water utilities have refused to implement tired rates because of the inherent problems. AWWA figures show utilities actually moving away from that type of rate structure.

The problem for those that defend the status quo is that after 2 years there’s no evidence the Authority’s tiered rate structure has even been effective in encouraging conservation, or at least no more so than an appropriately set uniform rate would be. While usage is down since the CFPUA was created, reports from both CEO Matt Jordan and former CFO Brett McAbee credit the decrease specifically to increased rainfall and a downturn in the economy, not the tiered rate scheme

It is significant that the foremost authority on water, The American Water Works Association, classifies the CFPUA’s tiered rate structure as punitive to larger families. According to AWWA standards, the Authority’s tiered rate is inherently discriminatory and unfair, punishing families with higher prices for their most basic water needs

The CFPUA’s current tiered rate structure is bad policy and it remains a stain on the integrity of this board. The American Water Works Association agrees.

It’s time to bring this form of government sponsored discrimination to an end.