Rate Revision

May 10, 2002

RE: Revision to Non-Residential Sewer Use Rate Schedule

Dear Non-Residential Customer:

The Peters Township Sanitary Authority revised its sanitary sewer use schedule of rates and charges at its March 12, 2002 regular monthly meeting. The minimum service charge of $29.25/unit and the user charge of $3.23/1,000 gallons remain unchanged, however the manner in which the number of Billing Units assigned to each non-residential customer is revised, effective on May 16, 2002.

The Authority historically assigned Billing Units to each non-residential customer based on the number of units within a building, regardless of water consumption, and applied a surcharge to those customers using water volumes in excess of their assigned number of units (relative to residential units). This method of achieving uniformity in rates and charges with our residential rates and charges was cumbersome, administratively complex, and confusing to the majority of our customers.

The revised rate structure eliminates the assignment of units based upon a physical inspection of the establishment and replaces it with a water consumption based assignment. The surcharge is also eliminated and replaced with a quarterly water meter fee that increases as the meter diameter increases.

See the enclosed Excerpt from the Revised Schedule A for a detailed explanation of the charges.

The intent of the rate structure revision was to maintain the existing total charge to individual customers as much as possible, however depending upon water usage patterns, some customer's total quarterly sewer bill may increase slightly.

Approximately 75% of all non-residential customers will not see an increase in their sewer bill and only 10% of our customers will experience an increase of greater than $20.00 with the maximum increase being $47/quarter, which represents a 1% increase to that customer. This of course is based on historical water consumption.

Overall this revised rate structure achieves the Authority's objectives of simplifying the process while providing the opportunity for customers to reduce their sewer bill by reducing water consumption.

Please note the revised rate structure will not show up in the next quarterly bill which will be mailed out on June 30, 2002, which is for the water consumption period of February 16 through May 15th. The revised rate structure will be in the sewer bills mailed September 30, 2002. If you have any questions, please call this office.

Sincerely,
PETERS TOWNSHIP SANITARY AUTHORITY

James J. Miskis, Manager