News Release

Huntsville City Council Approves Huntsville Utilities Water Rate Increase

August 11, 2005

The Huntsville City Council voted Thursday night to allow Huntsville Utilities to increase water rates by 12% for customers who use over three thousand (3,000) gallons per month. Customers who use less than three thousand (3,000) gallons each month will only see a 5% increase.

The increase will take affect with meter readings beginning on August 27.

The typical residential customer using 8000 gallons of water per month will see an increase of $1.49 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%.

"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.

Huntsville Utilities officials presented the case for a water rate increase at a Huntsville City Council work session on June 2, a public meeting on June 15 and at the City Council meeting of July 25.

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.