Why did my water bill go up?
Here are common reasons water bills go up:
- You have a leak or drip, such as a toilet with a leaky flapper.
- Your water heater needs to be fixed or replaced.
- You're using more water than usual. Maybe you're watering your garden, filling up your permanent or inflatable pool, or washing your car. Be mindful of your usage.
- Your rates went up. Water companies can submit applications to the Public Utilities Regulatory Authority (PURA) requesting a change in the rates they currently charge from customers. Follow different proceedings before PURA or OCC’s alerts to stay informed of these changes.
Private water companies
Private water companies have higher rates because they have higher costs than public suppliers:
Taxes
Private water companies pay taxes that public water companies don’t pay:
- Connecticut corporation business tax
- Contributions in Aid of Construction (CIAC) tax
- Federal income tax
- Local real estate and property taxes paid in all towns where they have property or facilities
- Sales tax
Legal requirements
Private water companies:
- Include their operating costs in their rates. Regional and municipal water companies can offset expenses through other taxes, fees, or operating budgets.
- Meet procedure and reporting requirements that don’t apply to public water companies.
- Charge all customers for the cost of extending a water main, not just the new customers on it.
- Spend a lot of money when they take over a failing water system and bring it up to State and Federal requirements.
- Often pay permits and fees to local boards and commissions.
Other reasons
Private water companies are for-profit companies that have shareholders to pay.
Private companies may have higher financing costs. They pay interest on loans, but public utilities can get funds from tax-free bonds.
Questions or concerns
Please contact your water company for help understanding your bill. Contact us if you still have questions.