Peoples was granted authority to increase
its rates by the Florida Public Service Commission (Commission) in March 2010. The rate Order authorized an increase in overall
revenues by approximately 11.90%. This was the first comprehensive rate increase approved by the Commission since 1991, over
19 years.
Some customers have experienced significantly higher water bills because of the rate increase and below are
reasons why:Conservation – Peoples’ traditional rate schedule essentially charged less per unit of water
purchased for each additional unit. The Commission and NW Florida Water Management District (WMD) want to encourage conservation
of water. In order to accomplish this goal, the Commission ordered the implementation of rates that charge more per
unit purchased for high consumption. Lifeline Rates – Rather than authorizing rates that would increase water bills
the same percentage for all usage levels, the Commission modified Peoples’ rate schedule so that:
Low consumption users (up to 3,000 gallons) would experience a decrease in rates;
Moderate consumption users (5,000 gallons) would experience a single-digit percentage increase in rates;
High consumption users (20,000 gallons or more) would experience a substantial increase in rates.
Peoples realizes
the change from the traditional rate schedule to this new methodology is producing high water bills for its high consumption
users and is sympathetic to those customers. However, Peoples must adhere to policies that have been adopted by the Commission
and Water Management District. We hope this provides a good explanation of why your water bills have changed.
