Commercial water users should mostly see good news with the revised rate structure recently adopted by Point Roberts water commissioners.

The board took action June 8 following the public hearing that included a presentation by district consultants, FCS Group. The rate review was spurred by the discovery that a significant number of commercial accounts had been mis-classified as residential customers. During the review, the consultants discovered that commercial water use was less than had been previously thought. According to Chris Gonzalez, the project consultant who presented the review, residences use only 25 percent less than the average commercial user. In addition, “commercial usage is down because of leaks that have been repaired,” he said. As a result, the district will be down $19,000 annually in revenue. Gonzalez was referring to leaks that were the responsibility of the commercial property owner, not district lines.

Although residential rates were not under review at the public hearing, the consultant was faced with a number of questions from both the audience and the commissioners regarding the methodology employed in determining average residential use.

Unlike most water systems, Point Roberts has a significant proportion of customers who mostly draw from the system during the summer. These users would tend to lower the year round residential average, thus throwing comparisons between commercial and residential users into question. Recognizing this, commissioner Scott Hackleman said, “I think we need to look at the average numbers for residential users,” though he later cautioned, “You can only go so far before you start chasing your tail.”

Asked by Ruby White what was the historical genesis of the differential between residential and commercial base rates, neither commissioners or staff were able to answer. Citing phone charges as an example, Hackleman pointed out that it is common for businesses to be charged more than consumers. He added that businesses, unlike individuals, are able to deduct water bills as a business expense.

Commissioners and district manager Dan Bourks discussed the issue of promoting equitable cost recovery from customers. The consultant offered alternative ways that this could be achieved for commercial users; one in which there would be substantial differences in base charges with customers paying the same volume charge. The second alternative establishes essentially the same base rate but the volume rate scales up with water meter size to reflect additional capacity and usage.

Commissioner Madeleine Anderson said “I think alternative two makes the most sense.” Bill Meursing motioned to accept the rate plan which passed unanimously. As a result, commercial customers will see their base charges drop from $152 to $71.27 per billing period. These rates will show up on the July bill.

The commissioners turn next to reviewing residential and golf course rates. A public meeting has been scheduled for Monday, June 28 at 5 p.m. at district offices on Tyee Drive. It is expected that residential rates will increase approximately by two or three dollars a billing period.