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PACE 10 Frequently Asked Questions
What is PACE 10?
It's a 10-year, $530 million wastewater improvement program to stop sewer overflows, meet regulatory mandates,
and help area waterways meet Clean Water Act requirements.
Is there any way to avoid rate increases to fund wastewater improvements?
No. KUB cannot avoid rate increases and still meet the shortened timeframe for improvements
mandated by regulators.
Couldn't you find ways to lower costs instead of raising rates?
No, not given the magnitude of the improvements regulators are requiring. The amount needed to fund improvements
will at least triple KUB's wastewater construction budget. We've been tightening our belts since we began
operating the system, however, and we are always looking for ways to perform better with fewer resources.
Thanks to cost-management efforts, KUB as a whole [electric, gas, water, ww] serves over 110,000 more customers
today than in 1990, and we do so with about 200 fewer employees. On a real dollar basis, our 2004 operating
cost per customer was at the same level as in 1994.
How does funding PACE 10 impact most bills?
Two-thirds of residential wastewater customers pay about $10 more after the 50 percent increase in April 2005. The next 50
percent increase will be in January 2007. The 22 percent who use only the minimum
amount of water a month will pay about $3 more. The increase doesn't affect non-KUB customers and doesn't apply
to electric, gas, or water bills.
Why did my bill go up more than my neighbor's?
You may have a larger family or different water usage habits. KUB, like many other utilities, bases wastewater
charges on water use, because most water goes into the system for treatment.
Are you only taking steps to fix the problems because you are being forced to by the City/TDEC/EPA/Environmentalists?
No. We have known that the wastewater system has problems since we acquired it from the City in 1987. From 1987-2004,
we have
spent more than $140 million systematically addressing problems. The only difference is that, given regulatory
intervention, we must now step up the pace of improvements. Shortening the timeframe to complete improvements
takes away the option to spread the cost out over time, which drives the need for higher rates.
How did we get in this situation?
KUB was taking a long-term approach to improvements, trying to balance system needs with what ratepayers could afford to fund. Because of lawsuits and regulatory intervention, KUB must now increase the pace of improvements, which requires substantial rate increases.
Why didn't KUB do something about this problem before things got this bad?
We have been systematically improving the system since we acquired it from the City in 1987.
The system was chronically underfunded and needed extensive upgrades and improvements. We began a
series of rate increases in 1989 to fund bringing our wastewater treatment plants into compliance,
eliminating combined storm and sanitary sewers, and other upgrades. We doubled rates between 1989
and 2002, and spent more than $140 million on improvements through 2004. But state and federal regulators
are now requiring that we increase the pace of improvements to eliminate known SSOs.
Hasn't KUB raised rates before?
Yes, four times in 17 years. KUB began to raise rates as part of a long-term plan to achieve and maintain
adequate funding levels while still keeping rates at a level customers could afford. The first increase
was 50 percent in 1989, followed by 21 percent in 1992, 5.8 percent in 1995, and 4 percent in 2002. The
cumulative effect of those increases doubled the average customer's wastewater bill since the late '80s.
Will wastewater rates go back down after the improvements are completed?
If we use debt to finance some of PACE 10, it will help spread the cost over
time — it will also mean it will take more than 10 years to pay back.
It is also impossible to know what other challenges we may face 10 years from now,
especially when the wastewater industry as a whole faces increasingly stringent
regulatory requirements. We are committed, however, to keeping rates as
affordable as we can and still meet regulatory requirements.
How much will my bill go up?
Early projections indicate wastewater rates could at least triple in a series of
rate increases over the next 10 years. The exact amount and timing of rate
increases will depend on the final mix of debt, grants, and rate increases. The first increase to fund PACE 10 was
50 percent in April 2005. Another 50 percent increase is planned for January 2007.
Is KUB's problem unique? Or are other communities facing similar problems?
No, KUB's situation isn't unique. Wastewater systems across the nation are facing the same problems of aging infrastructure and increasingly strict regulations.
How do KUB's rate increases to fund wastewater improvements compare with other cities under orders by regulators?
Our increases will be less than some, because of all the work KUB has already done, but more than others. Early projections indicate wastewater rates could at least triple over the next 10 years. Customers in Atlanta, Cincinnati, Louisville, and Birmingham are seeing increases of from 100 to 600 percent over the life of their programs.
The timeframe for those utilities ranges from 10 to 19 years, compared to 10 years for KUB under the TDEC order.
Is there anything I can do to hold my utility bill down?
- Reduce the amount of water you use: KUB bases wastewater charges on the amount of water customers use, assuming most of it goes into the wastewater system for treatment. Allowances are made for things like swimming pools and summer watering credits, and KUB offers tips on water conservation at www.kub.org.
- Conserve energy as well as water: If you are a KUB electric or gas customer, use KUB's free online energy audit and energy conservation tips. Using — and paying for — less electricity or gas will help hold your overall utility bill down.
- Sign up for BalancedPay: It won't make your bill any less, but it spreads payments out evenly over the year and makes budgeting easier.
What if I can't afford the increases in my sewer bill?
As always, customers who need assistance will be directed to area social service
agencies and other organizations. You can also reduce the amount of water you use to
help hold your wastewater bill down. KUB bases wastewater charges on the amount of
water customers use, assuming most of it goes into the wastewater system for treatment.
Efforts to use less electricity and gas will also help lower your overall utility bill.
Also, sign up for the BalancedPay Plan: It won't make your bill any less, but it spreads
payments out evenly over the year and makes it easier to budget.
Will this 50 percentd increase in April 2005 take care of the problem?
No, but it's a start. This is the first of a series of phased rate increases to fund improvements
required over the next 10 years. The second 50 percent increase is scheduled for January 2007.
Spreading the increases out over time helps lessen the impact on
customers, and the amount and timing of future increases will depend in part on the success of the
initial projects in reducing sewer overflows.
Will my electric/gas/water bills go up to pay for wastewater improvements?
No. Each KUB utility service is independent of the others. KUB may not use rates from
electric/gas/water customers to fund wastewater improvements. Because wastewater is
based on water usage, however, you can
lower your wastewater bill by using less water.
Is it safe for my children to play in a creek?
No — at least not without taking precautions — and not even in areas with no sewer overflows.
The EPA says runoff is the leading cause of water pollution in the U.S. Rain carries trash,
animal waste, yard fertilizers, runoff from streets and parking lots, and other
"non-point source" pollution into creeks.
[See www.epa.gov for more information.]
If you do decide to let your children play in a creek, follow these tips:
- Don't let them drink any of the water or put anything that has been in the water in their mouths.
- Wash their hands, toys, etc., thoroughly with soap after they have been in the creek.
- Make sure they don't have any cuts that could become infected. If they do have a cut, treat it with an over the counter antibacterial, and see your healthcare provider if it develops redness, swelling, etc.
What should I do if I see an overflow?
Avoid contact, and call KUB at 524-2911. If you can't avoid contact, wash thoroughly with soap and water.
Will KUB be able to stop all sewer overflows?
No, all utilities have overflows, especially in very wet weather. We're working hard to minimize overflows, but we can't control rain or flooding.
How can I help clean up area waterways?
According to the EPA Web site, "Water pollution results from a wide variety of human activities on the land. Each of us can contribute to the problem without even realizing it. You are the solution to non-point source pollution!"
We all need to do our part to clean up our creeks and rivers. To learn how you can help, check out Living Clean and Green, an educational program offered by Ijams Nature Center, KUB, and WBIR at any sponsor's Web site.
The KUB site also offers tips on how to Can the Grease
and protect your plumbing and KUB's sewers. You can also
help by not connecting things like roof drains to the
sewer and by keeping the cap on your sewer lateral cleanout
in good condition. Those tips will help keep out rainwater
that can overload the sewers.
Won't higher wastewater rates hurt some businesses — maybe even cause them to close or relocate?
Higher rates may impact some businesses, but KUB will work closely to provide any assistance we can through our Customer Support and Business Services departments. Businesses, for example, may also benefit from finding ways to conserve water and hold their bills down.
Will this fix the drainage problem in my back yard?
No, the sewer system and the stormwater system are separate. KUB maintains the sewer system, and the City of Knoxville is responsible for drainage issues associated with public and private properties.
I pay taxes, so why are you raising my sewer rates?
KUB is an independent agency of the City of Knoxville: No tax dollars go to supporting utility
services. In fact, KUB makes in-lieu-of-tax payments to the City of Knoxville — and is the
largest City taxpayer. KUB's services are funded only by ratepayer dollars.
Are you going to repair my street after work is finished?
In areas where it is necessary to dig up pavement to replace sewer pipes, KUB will repair streets. We will do as much work as possible without digging through trenchless technologies like lining and pipe bursting.
What is the cost benefit of storage?
Storage can be expensive [depending on where it is, size, above/below ground, etc.], but it
offers several benefits.
- Helps prevent overflows more quickly/surely than rehabilitation or replacement, avoiding fines/impact on environment.
- Allows us to design a more efficient and less expensive system, because we don’t have
to build in the extra day-to-day capacity to handle excess water that only results from
severe storm events.
- Builds in additional capacity for future growth.
- Relieves stress on plants during heavy rainfall periods.
Will KUB's work mean all of Knoxville's streams will be clean again?
It will help, but the EPA says that rainfall runoff is actually the leading cause of water pollution in the
U.S. Rain carries trash, animal and human waste, yard fertilizers, runoff from streets and
parking lots, and other "non-point source" pollution into creeks.
[See www.epa.gov for
more information.]
PACE 10 capital projects will eliminate the percentage of stream contamination that comes
from sewer overflows, as KUB is required to do. But because overflows are only part
of the problem, fixing them is only part of the solution.
To help ensure the greatest possible improvement for waterways, the community must come
together as PACE 10 partners. That's why PACE 10 also concentrates on giving customers
information about ways they impact stream quality and simple tips on how to help prevent
contamination in rainfall runoff.
The money spent on improvements and customer information efforts will help
- Comply with regulatory requirements
- Improve our waterways
- Improve our quality of life
- Avoid costly fines that would be passed on to customers
- Enable the wastewater system to better serve current and future customers
- Support growth/adding more homes and businesses to the system.
| If you have additional feedback, please contact us as follows: |
| E-mail your comments: |
PACE10@kub.org |
| Mail: |
KUB
Attn: PACE 10 - Mailstop GS03
P.O. Box 59017
Knoxville, TN 37950-9017 |
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