Las Vegas water rate increases proposed

Las Vegas Valley Water District customers could see their monthly water bills go up by about $3 a month next year as part of a proposed rate increase detailed today.

Actually, water district officials are seeking two rate increases at the same time for customers in the city of Las Vegas and unincorporated areas of the valley.

The first is a direct pass-through of a rate increase approved in September by the Southern Nevada Water Authority, umbrella agency of the water district.

The authority will double its monthly commodity charge to 20 cents per 1,000 gallons in 2010, then increase it by an additional 10 cents per 1,000 gallons in 2011. Water district officials plan to pass those increases on to customers, which for the average Las Vegas Valley home would mean roughly one extra dollar a month for each 10-cent bump.

At the same time, district officials want to increase the flat monthly service charge, which varies depending on the size of a customer’s water meter. About half the customers would see their monthly service charges go up $2 in 2010 and another $2 in 2011. About 40 percent would be hit with an increase of $2.31 a month next year and another $2.31 a month the year after that.

“It’s a fairly minimal impact to the bill for the vast majority of our customers,” said Dick Wimmer, deputy general manager for the water district.

The Clark County Commission, which serves as the water district’s board, will conduct a public hearing and vote on the rate increases Dec. 1.

If approved, the new rates would take effect Jan. 1.

Commissioner Chris Giunchigliani expressed some concern today about the higher service charges, especially when it comes to senior citizens on fixed incomes. She asked if the increase could be capped for certain customers.

Taken together, the proposed rate changes represent an increase of about 14 percent to the average monthly bill for the median Las Vegas household.

District officials said the additional revenue is needed to pay down debt on previous infrastructure projects and help fund current work such as a new $447 million pipeline to draw water from deeper in Lake Mead.

If approved, the increase in the district’s service charge is expected to generate $27 million in additional revenue over the next two years.

The water authority’s commodity charge increase is expected to bring in $42 million for the authority’s capital plan, which used to get most of its money from water connection charges paid by developers.

Authority officials project connection charge revenue of $27.8 million this year and $14.7 million next year, down from a peak of $188.5 million in 2006.

This will be the second time the commodity charge has been raised since it was established at 5 cents per 1,000 gallons in October 1996. The charge was raised to its current rate of 10 cents in November 2005.

The water district last raised its service charges in May 2008, when commissioners approved a 50 percent increase along with an increase in consumption-based water rates.

Contact reporter Henry Brean at hbrean@reviewjournal.com or 702-383-0350.