Council Public Utilities & Sustainability Committee: Peak Rate Structure

The City of Columbus Council Public Utilities & Sustainability Committee held a hearing on the proposed peak water rate structure on October 22, 2026. Columbus Water and Power Deputy Director John Lee presented a high-demand surcharge intended to recover added water-system capacity costs from nonresidential customers with unusually high peaks. The proposal would apply to customers averaging at least 100 CCF per month whose peak month is at least twice their average, at $1.62 per CCF of actual monthly consumption. The department estimated about 426 customers could qualify; modeled annual revenue could be around $6 million, though actual revenue remains uncertain and is not yet included in rate forecasts. Billing could begin in late 2027 or early 2028, following customer notification and further review of usage patterns.

Committee members discussed whether the thresholds should be adjusted, how to ensure the surcharge reflects actual costs, and whether resulting revenue could reduce future rate increases for other customers. The department said customer-type exemptions are not recommended and that it may be possible to adjust eligibility thresholds. No vote or procurement action occurred at this hearing. Council had directed the department to develop the proposal the prior month, with an October 26 deadline. The discussion also referenced the cost of water-system infrastructure, including a potential fourth water plant. No contract awards, purchases, or other procurement activity were identified.