Response to Why Water Rates are High
July 17, 2018
Water Rates are Based On Cost to Provide Water
Kempner Water Supply Corporation (KWSC) is large enough to fit portions of 4 counties in its service area, to include Bell, Coryell, Lampasas, and Burnet covering over 310 square miles of service area. KWSC receives water from Stillhouse Hollow Lake traveling between 30 and 40 miles to reach our members.
To really grasp the magnitude of this, picture our service area as big enough to fit all of Killeen, Copperas Cove, Harker Heights, and Lampasas with room left over to add more cities. The water in all of these cities are purchased and delivered to their city limits.
Unlike cities who have a much larger density population, rural systems do not have the benefit of large population per square miles, therefore, we may run miles of pipeline to serve a few customers, so fundamentally and economically rural utilities must charge a greater rate to provide services for these rural customers. We are member owned and not a subsidiary of the government, we don’t issue bonds or collect taxes. All rates are regulated and approved through the Public Utility Commission that have strict guidelines for establishing rates.
When comparing city water rates to rural water rates it is important to note that utilities like ours fill the gap where cities are not able to serve rural customers without a special contract outside their city limits.
Rural water systems are vital in all parts of the country because many people would not be able to have potable drinking water without these water purveyors. Many areas of the state do not have adequate underground aquifers to provide water to people in these rural areas therefore the rural water companies are necessary to fill in the gap for those who live outside the city.