Water company serving Boise area just raised its rates. Here’s how much
The water company serving most of the Boise area just won approval to raise its rates.
Veolia, a French company and one of the world’s largest water utilities, agreed to a settlement to increase its overall rates in the Treasure Valley by 11.8%, for an annual revenue increase of $7 million. The company had initially asked for an increase of 19.84%, or about $11.2 million.
The Idaho Public Utilities Commission approved the proposed settlement Friday, according to a news release. The rate hikes took effect Sunday.
Most residential customers will see their monthly bills rise by 12.4%, according to the final order.
Veolia said when it filed its application in November that it wanted the rate hike to recoup $74 million it had spent on customer improvements since January 2023. The company said the investments, which amounted to about $685 per customer, have improved water quality, safety and service reliability.
“We continue to increase the resilience of the state’s largest water utility so it can operate with the level of excellence we see today and in the future,” David Johns, the regional president of Veolia’s operations in Idaho, previously said.
Under its prior rates, the company had an annual rate of return, or profit, of about 4.8%, according to the application. The settlement increases the company’s rate of return to 7.05%.
The PUC received over 150 public comments on Veolia’s application, with most opposed to the proposed rate increase.
Veolia agreed as part of the settlement not to file another general rate case before January 2027.
Two years ago, the company dealt its customers another big increase. It won approval from the PUC in May 2023 to raise its rates by over 7%, though it had initially asked for more than 24%. Residential customers saw an average increase of $2.21 on their monthly bills. Dozens of customers had opposed that increase, too.
Veolia provides water to 108,000 homes and businesses in Ada County, according to a news release from the company.
The company acquired Suez, previously the Treasure Valley’s largest water supplier, in early 2022 in a $15.4 billion merger. Suez bought the parent company of United Water Idaho in 2000 and rebranded it in 2015. United Water Idaho was the successor to Boise Water Works, which began serving Boise in 1890.
