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Notice of proposed changes to Southern Nevada Water Authority water rates

Tentative schedule

Sept. 17, 2020
SNWA Board considers Recommendations Report

Oct. 15, 2020
SNWA Board considers Business Impact Statement

Nov. 19, 2020
SNWA Board holds a public hearing on rates

On Aug. 26, 2020, the Integrated Resources Planning Advisory Committee 2020 finalized 22 recommendations to be presented to the SNWA Board of Directors.

These recommendations help to develop a framework through which the Water Authority can comprehensively support mission-critical efforts in the future, including new infrastructure needed to maintain reliable water systems.

The SNWA Board will consider the Recommendations Report on Sept. 17, 2020. View the full Recommendations Report.

Recommendations included inflationary-based rate increases to SNWA charges to fund a proposed amendment to SNWA’s Major Construction and Capital Plan for infrastructure, water resources and water conservation initiatives.

SNWA water charges fund regional infrastructure and are found on all water bills, regardless of water service provider. While they are collected by SNWA purveyor members (City of Henderson, City of North Las Vegas and Las Vegas Valley Water District), they are directly passed through to SNWA. These revenues are collected by member agencies and are used exclusively to fund SNWA projects.

As part of the rate review process, a Business Impact Statement (BIS) must be prepared to evaluate the effect of the increased rates and charges on businesses. The SNWA Board of Directors will consider the BIS at its regular meeting scheduled for Oct. 15, 2020, and increases to water rates at a public hearing on Nov. 19, 2020.

Considerations

The SNWA Board of Directors is considering increasing rates to the following effect:

  • Implement a six-year annual increase to SNWA charges effective to:
    • Phase-in inflationary catch-up, and
    • Adjust for subsequent annual inflation within the six-year period:
      • Increase the SNWA Connection Charge by 9.5% annually for six years, effective March 2022
      • Increase the SNWA Infrastructure Charge by 4.6% annually for six years, effective January 2022
      • Increase the SNWA Commodity Charge by 4.8% annually for six years, effective January 2022
  • Implement an indexed rate component to the SNWA Infrastructure and Commodity charges annually, effective January 2028, and limit future increases to a floor of 1.5% and a ceiling of 4.5% each year.
  • Implement an indexed rate component to the SNWA Connection Charge annually in accordance with the ENR index, effective March 2028.

Purpose

This Notice is to publicly notify potentially affected businesses in order to conform to the requirements of NRS 237.030 – 237.110, "Adoption of Rules Affecting Businesses." With this in mind, there are two questions for potentially affected businesses to consider:

  1. Do the proposed charges impose a direct and significant economic burden upon your business? If you believe these changes do, please be specific as to why a particular charge imposes such a burden.
  2. Do the proposed charges restrict the formation, operation or expansion of your business? If you believe these changes do, please be specific as to how and why a particular charge imposes such a burden.

Please review and evaluate how these changes will affect your business in light of the two questions listed. If you believe your business is affected by the proposed options, you must provide a response to the Southern Nevada Water Authority no later than 6 p.m., Oct. 5, 2020. See contact information below.

Southern Nevada Water Authority
1001 S. Valley View Boulevard, M/S #760
Las Vegas, NV 89153
Attention: Jordan Bunker
702-258-7296
jordan.bunker@snwa.com

The SNWA Commodity Charge and Infrastructure Charge have not increased since they were last adjusted in 2017 and 2018, respectively. As a result, neither have kept pace with inflation. The SNWA Connection Charge has not been adjusted for more than 10 years and inflation has increased significantly since that time.

Integrated Resource Planning Advisory Committee 2020 proposed rate increases

Commodity Charge - Residential and non-residential customers
Per 1,000 gallons Current 2021 2022 2023 2024 2025 2026 2027 2028 (indexed)
$0.48 $0.48 $0.50 $0.52 $0.54 $0.57 $0.60 $0.63 $0.65
After 2027, the SNWA Commodity Charge will be increased in accordance with the Consumer Price Index (CPI) and collared between 1.5%-4.5%.
Infrastructure Charge (daily charge) - Residential customers
Meter size (inches) Current 2021 2022 2023 2024 2025 2026 2027 2028 (indexed)
5/8" & 3/4" $0.4306 $0.4306 $0.4504 $0.4711 $0.4928 $0.5155 $0.5392 $0.5640 $0.5809
1" $1.1403 $1.1403 $1.1928 $1.2477 $1.3051 $1.3651 $1.4279 $1.4936 $1.5384
1.5" $2.2803 $2.2803 $2.3852 $2.4949 $2.6097 $2.7297 $2.8553 $2.9866 $3.0762
2" $3.6487 $3.6487 $3.8165 $3.9921 $4.1757 $4.3678 $4.5687 $4.7789 $4.9223
3" $7.2966 $7.2966 $7.6322 $7.9833 $8.3505 $8.7346 $9.1364 $9.5567 $9.8434
4" $11.4010 $11.4010 $11.9254 $12.4740 $13.0478 $13.6480 $14.2758 $14.9325 $15.3805
6" $22.8016 $22.8016 $23.8505 $24.9476 $26.0952 $27.2956 $28.5512 $29.8646 $30.7605
8" $36.4823 $36.4823 $38.1605 $39.9159 $41.7520 $43.6726 $45.6815 $47.7828 $49.2163
10" $40.7333 $40.7333 $42.6070 $44.5669 $46.6170 $48.7614 $51.0044 $53.3506 $54.9511
Infrastructure Charge (daily charge) - Non-residential customers
Meter size (inches) Current 2021 2022 2023 2024 2025 2026 2027 2028 (indexed)
5/8" & 3/4" $0.8989 $0.8989 $0.9402 $0.9834 $1.0286 $1.0759 $1.1254 $1.1772 $1.2125
1" $1.7027 $1.7027 $1.7810 $1.8629 $1.9486 $2.0382 $2.1320 $2.2301 $2.2970
1.5" $3.4053 $3.4053 $3.5619 $3.7257 $3.8971 $4.0764 $4.2639 $4.4600 $4.5938
2" $5.4483 $5.4483 $5.6989 $5.9610 $6.2352 $6.5220 $6.8220 $7.1358 $7.3499
3" $10.8966 $10.8966 $11.3978 $11.9221 $12.4705 $13.0441 $13.6441 $14.2717 $14.6999
4" $17.0263 $17.0263 $17.8095 $18.6287 $19.4856 $20.3819 $21.3195 $22.3002 $22.9692
6" $34.0523 $34.0523 $35.6187 $37.2572 $38.9710 $40.7637 $42.6388 $44.6002 $45.9382
8" $54.4833 $54.4833 $56.9895 $59.6110 $62.3531 $65.2213 $68.2215 $71.3597 $73.5005
10" $78.3196 $78.3196 $81.9223 $85.6907 $89.6325 $93.7556 $98.0684 $102.5795 $105.6569
After 2027, the SNWA Infrastructure Charge will be increased in accordance with the Engineering News Record (ENR) and collared between 1.5%-4.5%.
Regional Connection Charge - Residential properties
Meter size (inches) Current 2021 2022 2023 2024 2025 2026 2027 2028 (indexed)
5/8" & 3/4" $4,870 $4,870 $5,333 $5,840 $6,395 $7,003 $7,668 $8,396 $8,648
1" $9,610 $9,610 $10,523 $11,523 $12,618 $13,817 $15,130 $16,567 $17,064
1.5" $19,170 $19,170 $20,991 $22,985 $25,169 $27,560 $30,178 $33,045 $34,036
2" $30,680 $30,680 $33,595 $36,787 $40,282 $44,109 $48,299 $52,887 $54,474
Regional Connection Charge - Residential rates based on factors other than meter size
Meter type Current 2021 2022 2023 2024 2025 2026 2027 2028 (indexed)
Individually metered more than eight units per acre and mobile homes (per dwelling unit) $3,400 $3,400 $3,723 $4,077 $4,464 $4,888 $5,352 $5,860 $6,036
Master metered more than eight units per acre and mobile homes (per dwelling unit) $3,400 $3,400 $3,723 $4,077 $4,464 $4,888 $5,352 $5,860 $6,036
Regional Connection Charge - Non-residential properties (hotels, motels, golf course and laundries excluded)
Meter size (inches) Current 2021 2022 2023 2024 2025 2026 2027 2028 (indexed)
5/8" & 3/4" $4,870 $4,870 $5,333 $5,840 $6,395 $7,003 $7,668 $8,396 $8,648
1" $9,610 $9,610 $10,523 $11,523 $12,618 $13,817 $15,130 $16,567 $17,064
1.5" $19,170 $19,170 $20,991 $22,985 $25,169 $27,560 $30,178 $33,045 $34,036
2" $64,260 $64,260 $70,365 $77,050 $84,370 $92,385 $101,162 $110,772 $114,095
3" $237,900 $237,900 $260,501 $285,249 $312,348 $342,021 $374,513 $410,092 $422,395
4" $353,100 $353,100 $386,645 $423,376 $463,597 $507,639 $555,865 $608,672 $626,932
Regional Connection Charge - Industrial laundries
Meter size (inches) Current 2021 2022 2023 2024 2025 2026 2027 2028 (indexed)
5/8" & 3/4" $76,800 $76,800 $84,096 $92,085 $100,833 $110,412 $120,901 $132,387 $136,359
1" $151,460 $151,460 $165,849 $181,605 $198,857 $217,748 $238,434 $261,085 $268,918
1.5" $302,950 $302,950 $331,730 $363,244 $397,752 $435,538 $476,914 $522,221 $537,888
2" $484,700 $484,700 $530,747 $581,168 $636,379 $696,835 $763,034 $835,522 $860,588
3" $969,400 $969,400 $1,061,493 $1,162,335 $1,272,757 $1,393,669 $1,526,068 $1,671,044 $1,721,175
4" $1,514,690 $1,514,690 $1,658,586 $1,816,152 $1,988,686 $2,177,611 $2,384,484 $2,611,010 $2,689,340
6" $3,029,360 $3,029,360 $3,317,149 $3,632,278 $3,977,344 $4,355,192 $4,768,935 $5,221,984 $5,378,644
8" $4,846,980 $4,846,980 $5,307,443 $5,811,650 $6,363,757 $6,968,314 $7,630,304 $8,355,183 $8,605,838
10" $6,967,540 $6,967,540 $7,629,456 $8,354,254 $9,147,908 $10,016,959 $10,968,570 $12,010,584 $12,370,902
Regional Connection Charge - Non-residential rates based on factors other than meter size
Meter type Current 2021 2022 2023 2024 2025 2026 2027 2028 (indexed)
6" and larger, excluding hotels, motels, golf courses, and laundries (based on annual usage in 1,000 gallons) $29.20 $29.20 $31.97 $35.01 $38.34 $41.98 $45.97 $50.34 $51.85
Hotels and motels (per room) $2,780 $2,780 $3,044 $3,333 $3,650 $3,997 $4,377 $4,793 $4,937
Golf course (per acre) $45,640 $45,640 $49,976 $54,724 $59,923 $65,616 $71,850 $78,676 $81,036
RV parks (per space) $1,380 $1,380 $1,511 $1,655 $1,812 $1,984 $2,172 $2,378 $2,449
After 2027, the SNWA Connection Charge will be increased in accordance with the Engineering News Record (ENR).