DURHAM, N.C. -- The City of Durham began a new tiered rate system for its water services Tuesday. 

Monthly customers will see the rate change on their Aug. 1 bills and bi-monthly customers will see the rate change on their Sept. 1 bills.  The new system has five tiers for single-family customers with higher rates as water consumption increases.

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Officials said the system encourages efficient water use by charging less per unit for residents who use less water. Those residents using more water will pay more per unit for the water.  

The new tiered rates also will pay for large capital projects including a new automated meter reading system, a new elevated water storage tank, additional water supply options, interconnections with other utilities and plant and system rehabilitation projects. 

All non-residential customers are set at the Tier 3 rate, and all irrigation accounts are set at the Tier 5 rate. Efficient and essential water uses are captured in the lowest tier, known as Super Saver Tier 1. Discretionary water use, such as irrigation and pools, can bump customers into more expensive tiers. Water and sewer service charge increases are also included in the new system.

“It is important that our residents know what the new tiered rate system means to them—the less water they use in homes, the lower their rate, and the more money they can save for other important things,” said Vicki Westbrook, deputy director of the City’s Department of Water Management. “The more water a customer uses, the higher the tier and charges for water use. The system rewards those who conserve water, which is a great benefit to our City.”

The tiered billing system also reflects what the City charges for a “unit” of water as shown on bills, which is 100 cubic feet, or 748 gallons. Most residential customers fall in the Tier 3 range, using about 16 units during a two-month billing period.

A super-saver customer using four units over the two-month period will be charged at the Tier 1 rate and see about an $11 increase in their total bill. A customer using 12 units over the bi-monthly period will be charged at the Tier 1 rate for the first two units of each month, at the Tier 2 rate for the next three units of each month and at the Tier 3 rate for the remaining unit used each month. This customer’s bi-monthly bill would increase about $13.

Service charges also increase this month. Service charges cover the cost of the meter reading and billing and other fixed costs of the water and sewer operations.

For most residential customers, service charges will increase from $2.58 to $5.11 per month for water and from $3.19 to $5.71 a month for sewer services. Customers living outside of the city limits will continue to pay twice as much as customers living inside city limits.

On June 23, 2008, Durham started a campaign to promote water conservation tips and strategies to its residents.  Learn More