Scioto Water Rate Study & Upcoming Rate Changes
At Scioto Water, Inc., we are committed to providing safe, reliable water service while maintaining the long-term sustainability of our system. As part of that commitment, a comprehensive rate study was recently completed, and upcoming rate adjustments have been approved.
Background on the Rate Study
In June 2024, Scioto Water entered into a Water Supply Revolving Loan Agreement with the Ohio EPA to support infrastructure improvements, including the Rose Hill Transmission Main Replacement project.
During the financial review process, it was determined that existing rates were not adequately covering:
- Debt service obligations
- Operational costs
- Long-term infrastructure needs
To address this, the Board of Directors partnered with the Great Lakes Community Action Partnership (RCAP) to conduct a Comprehensive Rate Analysis Study.
Key Findings from the Study
The study identified several important areas that need attention:
- Preventative Maintenance: Estimated at approximately $197,500 annually to maintain system reliability
- Working Capital: Current levels are below recommended thresholds and should be increased to ensure financial stability
- Debt Service Reserves: A reserve fund should be established to better manage loan obligations
- Infrastructure Needs: Ongoing repairs and replacements are required as system components age
- Long-Term Capital Planning: Future projects require planning and savings to avoid larger financial impacts later
Upcoming Rate Changes
Based on the study, the following changes have been approved:
- A $3.50 per customer increase beginning in 2025
- An additional 4.5% increase across all rate categories in 2026
Additionally, starting in 2027:
- A 3.0% automatic annual rate adjustment will be implemented each year to help keep up with inflation and avoid larger, sudden increases
When Will This Take Effect?
The approved increase will:
- Be added to bills after the June 2025 billing cycle
- Officially take effect July 1, 2025
This timeline allows customers time to prepare and adjust before the changes go into effect.
Why These Changes Are Necessary
Over the past several years, Scioto Water has experienced rising costs across all areas of operation, including:
- Materials and infrastructure costs
- Fuel and equipment expenses
- Electricity for system operations
- Communication systems and technology
- Regulatory compliance requirements
In addition, many parts of the water system are aging and require ongoing maintenance or replacement to ensure continued service.
Serving rural areas also presents unique challenges, as systems cover large geographic regions with lower population density, increasing operational costs per customer.
Our Commitment to Our Customers
We understand that rate increases are never easy. These decisions are made carefully and with the goal of:
- Maintaining safe, high-quality drinking water
- Ensuring reliable service for all customers
- Planning responsibly for the future
- Minimizing large, unexpected increases down the road
Scioto Water remains committed to providing the best possible service in the most economical way feasible.
Download the Full Notice
For full details, including the complete rate study summary and breakdown:
Download the Full Customer Notice (PDF)
Questions?
If you have any questions regarding your bill or the upcoming changes, please contact our office. We’re here to help and happy to walk through any details with you.