News Release

HU Makes Water Rate Increase Proposal to City Council

June 3, 2005

Huntsville Utilities officials presented the case for a water rate increase Thursday night to the Huntsville City Council during a council work session.

HU proposes to have a 12% rate increase beginning in July and another 12% increase in October of 2006.

The typical residential customer using 8000 gallons of water per month will see an increase of $1.47 per month on their bill.

"Over the past ten years, we have only raised water rates 5%," stated utility spokesman Bill Yell. The utility's last increase was in May 1999 when the rates were increased by 5%.

Utility officials also gave details on a conservation rate where customers who use three thousand (3,000) gallons or less each month will only see a 5% increase.

"Revenues from the rate increase are necessary to fund system maintenance and improvements so that we can continue to meet the high water quality standards our customers expect," Yell said. "Each year the cost of providing high quality water and delivering it to our customers continues to increase," Yell added.

Even with this rate increase, Huntsville's water rates will continue to be among the lowest in the southeast. Using eight thousand (8,000) gallons as a comparison, water customers in Birmingham would pay $24.12 per month, Madison - $21.80, Nashville - $20.17, Atlanta - $16.71 and Mobile - $16.67. Huntsville water consumers will pay $13.22 per month with the increase.

Utility officials will also hold a public hearing on the rate increase on June 15 at City Hall beginning at 5:30 p.m.

Huntsville Utilities provides water service to over 75,000 customers in the city of Huntsville and provides wholesale water to several water agencies within Madison County.