News Feature | May 26, 2016

Maryland Retiree Goes Up Against Major Utility

Sara Jerome

By Sara Jerome,
@sarmje

A Maryland man is trying to fight the rate structures used by his water utility, the Washington Suburban Sanitary Commission (WSSC). 

The Washington Post recently profiled Richard Boltuck, who had more time to examine his water bill after he retired from his day job as an economist. 

“He noticed back then, in 2009, something that he — and, he believes, many other residents of Maryland’s Washington suburbs — hadn’t realized. His water and sewer utility, one of the largest in the United States, has had a unique billing system, in place since 1978, that Boltuck believes discriminates against households with three or more people because it can make them pay more per gallon than smaller households. That, he says, violates the Maryland utility law that requires ‘just and reasonable’ rates,” the report said. 

Experts say WSSC uses a unique rating structure compared to other utilities, according to The Post

“Like many water utilities, WSSC tries to encourage conservation by charging more as customers use more water. But other utilities charge higher prices only for the gallons that bump them into a higher-priced tier. The rest of their water is charged at the lower rates,” the report said. 

Here’s how Botluck described the rate structure in a Post editorial last year: “Joan, a single woman, and Mary, a married mother of three, are buying apples at a local grocery. Joan buys one and pays $1. Mary buys five apples identical to Joan’s, but she’s charged $1.75 each.” 

Boltuck says he is not coming at this fight from a position of self-interest. In fact, if the structure changes, his household could see its bills rise, since he and his wife make up a two-person home. 

Attorneys for the Maryland Office of the People’s Counsel, a state agency that advocates on behalf of utility customers, agree with Boltuck. 

Boltuck took the utility to court and represented himself. The decision from the judge is expected in September. 

What does the utility say about the issue? 

“WSSC argues that it doesn’t discriminate against larger households because it bills for water based on the daily average amount of water that passes through a meter during a quarterly billing cycle, not the number of people in the home. A single person with a swimming pool and a thirsty lawn could use more water than a home with more people,” The Post reported, citing WSSC. 

The utility added that a flat-rate structure would mean higher bills for most customers.

To read more about the different ways that utilities collect revenue visit Water Online’s Funding Solutions Center