Commissioner Fish Accepts CUB Recommendation on Rate Stabilization Funds
Posted on February 18, 2015 by Janice Thompson
Tags, Water/Wastewater
Yesterday (February 17th), Willamette Week highlighted CUB’s analysis of stabilization funds used by the Portland Water Bureau and Bureau of Environmental Services to ease spikes in sewer, stormwater, and water rates, and our recommendation for annual review of these funds. CUB’s independent review was requested by Commissioner Nick Fish after Willamette Week wrote an earlier article suggesting that the Water Bureau spend down its rate stabilization fund in one year. CUB’s analysis underscored that such an action would have provided one-time rate relief promptly followed by alarm at bond rating agencies and dramatic rate increases.
CUB found that Portland’s rate stabilization funds are built-up and drawn-down based on targeted and strategic plans to ease the financial impact of major capital investments. Stabilization funds also help maintain Portland’s excellent bond ratings that – like having a good personal credit rating – help ensure that our public utilities get the lowest financing costs possible on big construction projects.
Although rate stabilization funds are discussed in Portland Water Bureau and Bureau of Environmental Services budget documents, CUB recommended more transparency, particularly regarding adjustments in these funds. Commissioner Nick Fish has accepted CUB’s recommendation for annual review of Portland’s utility rate stabilization funds.
CUB’s analysis is available on our website.
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04/27/17 | 0 Comments | Commissioner Fish Accepts CUB Recommendation on Rate Stabilization Funds