The Detroit News reported yesterday [2/2] that the Detroit Water and Sewerage Department is planning to roll out a tiered billing system that would offer residents and businesses a lower rate on the first 1,500 gallons used per month. Consumption above that amount would be charged at a higher rate.
Details, including the actual rates being proposed, have not been released.
Note: It is unclear whether rates for sewerage, which are generally tied to water consumption, would be included in the new tiered rate plan. The Detroit News also notes that the proposed block method of billing could shift $5 to $7 million dollars of water cost from residential to business and commercial customers.
Along with DWSD's new drainage charge (what some have dubbed a "rain tax") that was rolled out last October, adding $750 per impervious acre per month to many business and commercial property owner's utility bills, higher water rates to subsidize residential customer rates may not be welcome news.
For more about DWSD Update, click here.