The Methuen City Council has set a “tiered” or progressive water rate to replace the “flat” rate they had voted in earlier this year. In passing the first increase in many years the Council, in moving to a tiered system, recognized that most of our water users fall into a use category that will see some major savings percentage wise over a flat system. I have posted a spreadsheet that shows how the newly adopted City Council rates will save money for about eighty percent of our ratepayers. My spreadsheet shows that an elderly ratepayer stands to save 35 percent by implementing the tiered proposal as opposed to the flat rate. A similar non-elderly user will save about nineteen percent by the new rate structure. I have had some questions about the new commercial rate, and my comments that the low end of the commercial spectrum would be impacted in a greater fashion. To clarify, my comments reflect the fact that unlike the prior five tier structure this structure imposes a flat rate on commercial ratepayers. So for low commercial water users the jump in rate will be greater than for the larger commercial users. In the prior five tier structure (in existence before the flat rate was imposed) commercial ratepayers paid based on flows, the same as residential. The City Council has moved all commercial accounts to a flat $3.25 rate regardless of usage. The City Council should be congratulated for moving the residential rate to a progressive structure, and protecting the interests of the vast majority of ratepayers.

Water Rate Spreadsheet