System Development Charge Update Effective 12/1/18

Kennebunk, Kennebunk & Wells Water District

 

System Development Charge Update

 

The District’s System Development Charge (SDC) was created in 1987 and has been in effect since then. It is essentially an impact fee, which is a common capital recovery tool used in areas that are experiencing moderate to rapid growth. More specifically, our SDC was created to help insulate the District’s current customers from the capital costs related to the expansion of the District’s infrastructure needed to serve new customers.  It is an impact fee that new customers (or certain existing customers that expand their use of water) pay prior to acquiring the requested service.

 

On November 19, 2018, the MPUC approved a modification to the SDC that establishes a flat-rate SDC for all 5/8” (typical size) meters. For all larger meters, “If the Water District determines that a 3/4” or larger meter is needed, all estimated water consumption will be considered by the Water District in the determination of the System Development Charge (SDC)”. This includes all new customers and all existing customers that alter, expand or redevelop their premises in such a manner that will result in an increase in water consumption that results in the installation of a 3/4” or larger meter. These new SDC terms take effect on December 1, 2018.

 

The complete current Tariff explains these terms in more detail.

 

If you have any questions relating to this change in the SDC, feel free to call us at 207-985-3385 during business hours (M-F 8:00 am to 4:30 pm) or email us at your convenience.