Stormwater Utilities in Wisconsin October 18, 2016 Steve Kemna, - - PowerPoint PPT Presentation
Stormwater Utilities in Wisconsin October 18, 2016 Steve Kemna, Public Service Commission stephen.kemna@wisconsin.gov Overview Case Study 1. Overview of stormwater utilities in 2. Wisconsin 3. How to create a stormwater utility 4. Regulation of
October 18, 2016
Steve Kemna, Public Service Commission stephen.kemna@wisconsin.gov
1.
Case Study
2.
Overview of stormwater utilities in Wisconsin
Acme complains that it shouldn’t pay any stormwater fees
because:
agreement with City.
City’s stormwater system.
City argues that everyone has to pay stormwater fees
because:
City offers riparian credit of 50%. Acme rejects offer.
Acme complains that it shouldn’t pay any stormwater fees
because:
agreement with City.
City’s stormwater system.
City argues that everyone has to pay stormwater fees
because:
City offers riparian credit of 50%. Acme rejects offer.
1.
Case Study
2.
Overview of stormwater utilities in Wisconsin
A financial tool that creates an enterprise fund within a local government for addressing nonpoint source pollution and flooding.
1998, Wisconsin legislature allowed municipalities to
collect charges for constructing and operating stormwater collection and treatment systems.
http://wisconsin.apwa.net
Wisconsin has 120 stormwater utilities
Generates a dedicated funding source that does not
compete with schools or public safety.
Forces tax exempt properties to pay for stormwater
services.
Corrects the fact that stormwater funding through
property taxes may result in residential customers subsidizing large commercial, industrial, and institutional customers.
Generates funds needed to meet MS4 stormwater
permitting requirements (sampling, modeling, BMPs) without exceeding levy limit.
WDNR identies 200+ municipalities in Wisconsin that
77% of Wisconsin’s stormwater utilities have an MS4
1.
Case Study
2.
Overview of stormwater utilities in Wisconsin
3.
How to create a stormwater utility
1.
Educate elected officials and the public about stormwater utility benefits and costs.
2.
Establish steering committee.
O&M expenses, and capital costs).
1.
Educate elected officials and the public about stormwater utility benefits and costs.
2.
Establish steering committee.
O&M expenses, and capital costs).
impervious area as a proxy for stormwater quantity and quality (easy to measure and easy to administer).
family residences. This becomes the definition
Average Impervious Area = 5,230 sq ft
7.
Residential properties are assigned 1 ERU.
proportion to their total impervious area. Example: An industrial customer with 80,000 SF of imp area = 80,000/ 5,230 = 15.3 ERUs.
Source: “Report Summary for the Village of Caledonia Storm Water Utility District Proposed Rate Structure”, 2013, R.A. Smith National
$500,000 budget / 15,328 ERUs = $33 per ERU
$500,000 budget / 15,328 ERUs = $33 per ERU
customer.
appeals and credits issued.
customer.
appeals and credits issued.
1.
Case Study
2.
Overview of stormwater utilities in Wisconsin
DNR
Regulates MS4 stormwater discharge permits for municipalities and industry (WPDES / Clean Water Act).
PSC
Secondary complaint jurisdiction of rates, rules, and practices of stormwater utilities.
DNR
Regulates MS4 stormwater discharge permits for municipalities and industry (WPDES / Clean Water Act).
PSC
Secondary complaint jurisdiction of rates, rules, and practices of stormwater utilities.
PSC regulates stormwater utilities by complaint only. The standard of review is not whether the rates, rules,
and practices are the best, most reasonable, or ones that the PSC would require if they regulated the utility, but rather if they are reasonable and not unjustly discriminatory.
PSC reviews an average of 3 stormwater complaints
each year. Typically only 1 of these becomes a formal complaint.
1.
Case Study
2.
Overview of stormwater utilities in Wisconsin
5.
PSC complaint process
1.
Complainant files legal petition.
2.
PSC has 60 days to either open an investigation or dismiss the complaint.
3.
If PSC opens an investigation then hold prehearing conference.
4.
Discovery
5.
Direct, rebuttal, and surrebutal testimony
6.
Hearing
7.
Briefs
8.
Commission Decision
9.
6 to 12 month process
1.
Complainant files legal petition.
2.
PSC has 60 days to either open an investigation or dismiss the complaint.
3.
If PSC opens an investigation then hold prehearing conference.
4.
Discovery
5.
Direct, rebuttal, and surrebutal testimony
6.
Hearing
7.
Briefs
8.
Commission Decision
9.
6 to 12 month process
1.
Case Study
2.
Overview of stormwater utilities in Wisconsin
Stormwater utilities rely on a crude system of allocating
costs.
Rely heavily on “system‐wide averaging” of costs. Credit policy helps rates better reflect “cost causation”. Credit policy should:
(reduction in peak flow, volume, pollutant load)
regarding stormwater rates since 1998.
Eau Claire (Docket 9500‐SS‐100) – CO found that Plainwell Tissue should pay general admin/management costs of the stormwater utility, but not any capital or O&M costs.
PSC survey of WI stormwater utilities found:
hydrologic criteria
PSC survey of WI stormwater utilities found:
hydrologic criteria
120 stormwater utilities in Wisconsin Pays for MS4 permitting Rates typically based on % impervious area May lead to unreasonable rates (not enough cost‐
causation)
PSC has secondary complaint jurisdiction over rates,
rules and practices
Credit policy is key to reasonable rates PSC needs to provide guidance for developing
reasonable credit policies