What is tiered billing? Following a rate study and feedback from citizens, we have moved to a tiered billing structure for county water and sewer customers. The tiered billing system calculates billing using a quarterly base rate plus four-tier variable rates:
Tier 1: 0-4,500 gallons
Tier 2: 4,501-18,000 gallons
Tier 3: 18,001-108,000 gallons
Tier 4: over 108,000 gallons
A tiered billing structure works like a set of steps:
All customers start at Tier 1. This is the lowest rate for a basic amount of water that covers the basic everyday needs of most households, like drinking, cooking and cleaning.
If you use more water than what is covered in Tier 1, you will be charged the Tier 2 rate for the additional water used.
If you use even more water than what is covered in Tier 2, then Tier 3 rates will kick in; likewise, when Tier 3 usage is exceeded, Tier 4 rates will begin. Each tier charges a higher rate per gallon for any water used above the previous tier.
The tiered billing structure allows us to lower the cost of water typically needed to support the basic needs of most households. This results in cost savings for customers who prioritize water conservation. When you use extra water, your water bill will be a bit more expensive.
When did the tiered billing rates take effect? The rates took effect on July 1, 2024.
Were customers notified and asked to provide input on the rate changes? To design the tiered billing structure, we listened to citizen feedback through community town hall meetings and an online customer survey. The survey was open Sept. 25-Nov. 13, 2023. The survey link was provided to attendees during our town hall community meeting, posted on social media and posted on our website.
The tiered billing structure was part of the fiscal year 2025 commissioners’ recommended budget. The public was encouraged to attend the public hearing on Thursday, May 16, and/or submit written comments. Find more information on participating in meetings and view agendas and minutes at www.calvertcountymd.gov/BOCC.
How can I expect this to impact my quarterly bill? You can estimate your costs by looking at your current usage and use our online bill calculator to see what your bill will be under the new rate structure.
The first bill under the new rate structure will go out at the end of September.
Will tiered billing take into consideration how many people are living in a household? Tiered billing does not take household size into consideration; rates are determined based on actual use. However, it’s important that our billing system is fair and considers the different needs of all our residential customers. In our tiered billing model, the usage that defines each tier accounts for the average water needs of a household. Our goal with tiered billing isn’t to penalize families for their size, but to encourage conservation and ensure sustainable water usage for everyone.
How will the new rates provide necessary revenue and fairness in the rates? The Water & Sewer Enterprise fund covers the operating costs from the fees it charges for the provided services. The commissioners evaluate and approve the fund’s budget and requested fees for service. Learn more about the budget process at www.calvertcountymd.gov/Budget.
Why are the rates for sewage higher than water? The reason sewage charges are higher than water charges is primarily due to the different costs associated with treating wastewater compared to the costs of providing clean water.
Treating sewage is a much more complex and intensive process than treating water, that involves several stages of treatment to ensure the water does not harm the environment when discharged. This process requires advanced technology, more energy and often more specialized materials than are needed for treating incoming water.
Furthermore, maintaining the sewage infrastructure, which includes pumps, pipes and treatment facilities, often involves higher costs. The charges help cover the maintenance of this essential infrastructure, ensuring that it operates effectively and meets environmental, health and safety standards.
Are meters being replaced and will that impact rates? As the county gets closer to the automated meter reading process it may require either a meter head or an entire meter replacement. It is too early in the process to provide a cost. How this may impact rates is yet to be determined.
How were the tiers determined in the rate model? The initial tiers were determined by a consultant, using historical consumption information.
What are EDUs? An Equivalent Dwelling Unit (EDU) allocates assigned capacity, permitted from the state, for each water system and wastewater treatment plant. One EDU equals 18,000 gallons of water per calendar quarter or approximately 200 gallons of water per day.
What are Capital Connections? Capital connection fees are charged for capacity allocation to public water and sewer systems. The fees are needed to perform maintenance and upgrades to support the infrastructure that delivers safe water, and for collecting, treating and releasing effluent over the life of a system.
Does this affect homes with well and septic? No.
What are some ways I can reduce my bill and help to conserve water? Visit our water conservation webpage for water saving tips.