News Release

Huntsville Utilities To Increase Water Rates in December

October 10, 2007

Huntsville Utilities Waterworks Board approved a two-year plan for rate increases at their meeting in September. The first rate increase will be effective December 1, 2007 and the second will be effective September 1, 2008.

The rate increase will help finance the construction of an expansion to the South Huntsville Water Treatment plant. The project to expand the plant by twelve million gallons of water per day will allow Huntsville Utilities' customers continued access to safe drinking water and water for irrigation of lawns during the summer. The project will require the borrowing of $24,000,000 in early 2008 and the plant will be online by the later part of 2009.

The increase in December will add $0.42 to a small user of 3,000 gallons per month. It will add $.93 per month to an average domestic user of 6,000 gallons per month. Larger increases will impact those that use more than 6,000 and for those customers that use the water for irrigation.

Even with both increases, Huntsville Utilities rates remain some of the lowest in the region.

"Huntsville Utilities has a long history of providing high quality water service while still maintaining very low rates," stated utility spokesman Bill Yell. "Even with these increases, our rates will be below just about every water system in the region," Yell added.

Huntsville Utilities set all-time records this summer for water use as the community continues to struggle with drought conditions. On August 24, the Huntsville Utilities Water System established a record for the amount of water pumped in a single day when 75.65 million gallons of water were pumped from the Utilities' water plants and wells. The operation system capacity for the water systems is approximately 82 million gallons a day.

The rate increases will be discussed at a public hearing scheduled for October 23 in the Huntsville City Council Chambers located at 308 Fountain Circle. The rate increase will then have to be adopted by City Council before it becomes official.

Huntsville Utilities is a publicly owned, not for profit utility with approximately 83,000 water customers in Huntsville and Madison County.