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RateIncrease

August 25,2017
DEAR MEMBER CUSTOMERS OF 439 WATER SUPPLY CORPORATION

The Board of Directors of 439 Water Supply Corporation has accomplished much in recent years: managing the growth of our system and securing sufficient water and treatment capacity for our member customers, as well as making necessary infrastructure improvements. Much work is still required to be able to deliver the water that our system will demand in the future.
As each of you are aware, costs are increasing every day. The cost of our raw water plus the cost of treating that water continues to increase on a regular basis. In addition, operational costs grow as the system grows.

In order to keep our system operating properly and to remain financially healthy, the Board of Directors voted at its meeting on August 9,2017 to implement a rate change, to become effective October 1, 2017. . This increase will be reflected on your bill due November 10,2017.  The Base Minimum rate will not change; however, no gallons will be included in the base minimum.  The new rates are listed below:

                            Base Mimimum  (-0- gallons)                                       $ 35.00
                            Additional Usage:
                            -0-   to 10,000 Gallons                                                $ 3.15 per thousand gallons
                            10,001 to 20,000 Gallons                                             $ 3.25 per thousand gallons
                            20,001 to 40,000 Gallons                                             $ 3.45 per thousand gallons
                            40,001 Gallons and over                                              $ 4.00 per thousand gallons
                                               Plus TCEQ Regulatory Fee ( .005 of water charge)
Below are a few examples that reflect changes to the billings.
Under the Old rate structure, if your bill was:                              Your bill under the new rate structure will be:
                    $35.00 ( Base Minimum)                                              $35.00 ( Base Minimum)
                    $35.00 ( usage of 2,000 gal)                                         $41.30 ( usage of 2,000 gal)
                    $44.50 (usage of 5,000 gal)                                           $50.75
(usage of 5,000 gal)
                                                                                                            Plus TCEQ Fees

Although the Board of Directors continues to work to keep our rates as low as possible, we are unable to control most of our costs, including the cost of our water and the energy needed to treat and deliver the water. We will work diligently to meet the challenges that lie ahead and continue to deliver each of you quality water and great service at the lowest cost possible.

Respectfully,
The Board of Directors
439 Water Supply Corporation