For Immediate Release

September 27, 2005

Charleston Water System Board approves new rates and increase in impact fees

(September 27, 2005)—Charleston Water System's Board has approved new water and sewer rates and an increase in impact fees.

Beginning December 1, 2005 water rates will increase by an average of 6% and sewer rates will rise by an average of 7%. The typical City of Charleston water and sewer customer using 6,000 gallons of water per month will see a total increase of about $3.50 on a monthly bill. The Board of Commissioners had previously approved a 3.3% water and 5.5% sewer rate increase, but amended the rate increase to 6% for water and 7% for sewer to make up for increased operating expenses, including rising fuel prices, and the upcoming loss of some 3,000 water customers in Berkeley County following the expiration of an exclusive area service contract next summer.

The Board also approved an increase in water and sewer impact fees, which are charged to newly built homes/businesses applying for water and/or sewer service. The fees help fund expansion of the water and sewer system to accommodate growth. The residential water impact fee will increase from $1,190 to $2,200. The residential sewer impact fee will increase from $1,820 to $2,650. These increases will become effective January 30, 2006.

Charleston Water has worked with the Lowcountry Housing Trust and other organizations to address affordable housing concerns by reducing both the water and sewer impact fees by $500 each for qualified customers. Qualifications guidelines and instructions on how to apply for this affordable housing rate have not been developed, but will be made available prior to January 30th.

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