Shady Hollow MUD is considering changing the way customers are charged for their wastewater services from a flat rate method to a winter averaging method. No changes are planned for the immediate future, but the MUD will be collecting data this winter to use in deciding whether a change in the current billing method would benefit the MUD’s customers.
Currently the MUD’s customers are charged flat monthly rates for wastewater: $82.41 for customers in the District and $94.77 for customers outside the District. These rates are constant from month to month and are the same for every customer in the same rate class. Shady Hollow MUD has billed this way since it was created in 1980.
While Shady Hollow MUD is not the only utility to use this flat rate method, most utilities determine charges for wastewater service using a method commonly referred to as winter averaging. In this method, the average water use during the winter months is used to determine wastewater charges for the upcoming year. Usually, December, January and February are used because outdoor water use is minimal during those months so the water used gives the best estimate of how much is actually entering the sewer. It is thought that this billing is fairer to small households and encourages water conservation.
After the water use data from this winter is available, the MUD’s rate consultant will be asked to develop rates that will generate the revenue needed to provide wastewater service. The MUD Board will then consider making changes in the current method. This will likely happen in May – June of 2022.
Citizens are welcome to submit any comments or concerns regarding this on the MUD’s website at shmud.org/contact.