BIRMINGHAM, Ala. —
Changes could be coming to Central Alabama Water bills, and nearly 90% of residential customers could end up paying more.
The CAW board considered three proposed rate structures during its meeting Friday. One option gaining momentum would charge nearly every residential customer the same rate for each unit of water used. The board endorsed the proposal but has not formally put it in place yet. It is unclear when a final vote will take place. If approved, the new rate structure would take effect Jan. 1, 2027.
Under the proposal, customers would still pay based on how much water they use. However, the price per unit would remain the same instead of increasing through three usage tiers. For many lower and moderate-use customers, the change would mean paying roughly $4 or $5 more each month. Some heavier users would see their bills drop.
Here are several examples provided by the utility:
A customer using about 1,500 gallons a month would pay $3.52 more
A customer using about 3,700 gallons would pay $4.90 more
A customer using about 6,000 gallons would pay $4.33 more
A customer using about 7,500 gallons would pay $3.95 more
A customer using about 11,200 gallons would save $8.01
A customer using about 15,000 gallons would save $27.31
That means the proposal is not an across-the-board rate increase. The restructuring would shift more of the cost toward lower and moderate-use customers while reducing bills for some of the utility’s heaviest users.
Customer Valerie Davis said she lives on Social Security and cares for her elderly mother. She said her household already watches every drop.
“We’re very, very frugal,” Davis said. “We keep everything down as much as we can. We don’t water outside. We don’t do anything like that. But still, you have to have water.”
The utility company said money is tight and believes a uniform rate would make the amount it collects more predictable. Under the current system, CAW depends heavily on money collected from its highest usage tier, which largely includes outdoor irrigation. That water use can rise or fall depending on rainfall.
CAW also said it has enough water capacity and does not need sharply increasing prices to encourage conservation. It argues that a uniform rate would be simpler and could benefit larger households. However, some customers worry the change would make conserving water less rewarding.
Precious Sanders compared the proposal to going to dinner with a group of friends.
“My comparison is like when we go out to eat and they want to give one bill for the table, and somebody over here just ate an appetizer and somebody else ate an appetizer, two drinks, full course meal, and we’re all saying we have to pay the same,” she said.
Customers would not actually receive the same water bill under the proposal. Each household would still pay for the amount it uses. The difference is that every unit of water would cost the same, which would allow heavier users to pay less per unit than they do now.
The proposal is designed to bring in roughly the same amount of money as the current structure. The utility estimates the uniform rate would generate about $215.2 million, compared with approximately $215.3 million under the existing system. That’s a difference of less than one-tenth of 1%. The board also considered including the first three CCF of water in the monthly base charge or keeping the current three-tier structure. One CCF equals about 748 gallons.
The rate discussion comes as some customers are already frustrated over other issues involving the utility, including the board chair’s salary, employee firings, incorrect charges and the removal of fluoride from the water. Customer Derrel Nunn urged the board to think carefully before making a final decision.
“Don’t try to fix something that’s not broken,” Nunn said. “And if you do decide to go with changes, make sure that those changes impact your customers positively for the long term.”
Central Alabama Water has not announced when the board will have a final vote.