Planning for the Future

Everyone is sensitive to increases in what they pay for the goods or services they receive. Chester Water Authority  (CWA) is committed to quality, service, and value. This means, in part, planning ahead to maintain and upgrade existing facilities and water lines, incorporate new technologies, and maintain a rigorous water treatment and testing program. Part of our planning process includes evaluating our rate structure approximately every three years to determine our anticipated needs in order to maintain quality water service for our customers.  The next rate increase will take effect on January 1, 2000––our first increase since 1996. The rate increase will affect all of our existing 36,000 customers, including all residential, commercial, and industrial accounts.

The exact amount of the rate increase is being determined by a professional rate consultant who has performed this service for Chester Water Authority since 1974.

Since 1987, our rates have increased every three years as follows:

Since 1987, the rates have increased at an average level of 4.25 percent per year. Chester Water Authority has implemented these regular increases to support our philosophy of providing quality, service, and value with the proper facilities and a highly competent and highly trained staff. Our commitment to providing up-to-date facilities and a superior professional staff means that we can provide the highest quality water to your tap, in ample quantities, whenever you need it.

The major cost components which drive rate increases are:

• Cost of capital monies to perform capital construction

• Cost of labor

• Cost of purchased power and chemicals

• Cost of insurance

• Cost of regulatory compliance

• Cost of technological advancement

Upgrades and Updates

Regulatory requirements from the federal Environmental Protection Agency and Pennsylvania Department of Environmental Protection are increasingly demanding.  These mandatory tests and procedures have required substantial capital and operational investments over time in order to ensure that our water treatment and distribution systems meet––or exceed––all regulations. Our commitment to complying with these laws and mandates is a commitment to the high-quality, ample water supply that is available to you.

Since 1974, CWA has added over $119.1 million of capital construction to our system––$74.4 million of that in the last 10 years. Some of these projects include major tank construction and renovations, rehabilitation of water mains and hydrants, construction of transmission and distribution pumping stations, and continuing computerization and automation of our operational systems. 

The Results

Enclosed with this mailing of CWA News is CWA’s 1998 Water Quality Report, also known as the Consumer Confidence Report (CCR).  The CWA treatment facilities that furnish our high-quality water, as demonstrated in the Water Quality Report, are a prime example of the results of CWA’s operational expertise and the value of the capital investments made by CWA.

As a municipal authority, CWA operates at a high level of efficiency. Because we are a not-for-profit company, we do not pay dividends to stockholders. We answer to our customers, not to stockholders.

The Competitive Edge

The basic question remains: How do our rates compare now and into the future? A typical residential customer using 18,000 gallons of water per quarter would have the following bills from CWA and neighboring private water utilities:

As the chart shows, even with our commitment to infrastructure and quality issues, CWA provides significantly lower rates to our customers than major neighboring private utilities do.

Finally, over the past several months you may have seen articles concerning Chester Water Authority’s interest in purchasing the City of Coatesville System. The main reason for CWA’s interest in  the purchase is the long-term growth potential and operational efficiency that the combined system would provide to both CWA   and Coatesville. However, we want to make a very strong statement that, because of the way the acquisition package is structured, the Coatesville purchase does not impact on the upcoming rate increase. The rate increase is based on an independent determination, whether or not CWA completes the Coatesville purchase.