May 31--Industrial customers and developers ,prepare.

If Decatur Utilities approves recommended water and wastewater fees, rates for industries will increase and developers will pay a newly established fee.

DU outlined the financial future of local industries Thursday during discussions with ADL Inc. and Burton and Associates, companies the municipality commissioned to perform water and wastewater rate studies.

A negative economic climate and escalated operating costs are expected to lead to costs higher than revenue, said DU General Manager Ray Hardin.

The study recommended increasing the consumption rates and monthly base fees.

"The usage charges are proportional," said Andrew Burnham, senior vice president for Burton and Associates. "Rates for residences and industrial customers are increasing by the same percent, depending on the size meter customers use."

Currently, the monthly sewer cost for an industrial customer connected to a 4-inch pipe averages $5,824. With the recommended rates, by 2014, the projected cost would be $10,086, Burnham said.

While the study suggested consumption rates increase proportionally, industrial customers will encounter a steeper monthly base rate hike compared to residences.

The monthly rate would increase $2.86 for residential customers by 2014 and $776.82 for industrial customers using 12-inch pipes.

"These increases look rather large for the meter sizes, but when you think about the overall bill at those levels, $20,000, $30,000, $40,000 a month, this type of increase is not as visible as changes to usage rate structure," Burnham said.

Based on guidelines

Officials based the proposed rates on guidelines established by the American Water Works Association.

"Larger meters have a greater potential demand on the system and should share in a greater proportion of the fixed costs to the system," Burnham said.

Even with the monthly fee and rate increases, Hardin assured the board Decatur would actively attract industries.

"Industrial recruitment is still very important to Decatur, and we can show we are still the most competitive place, if water and sewer are their deciding factors," said Hardin.

Still boasting low rates

According to Burton and Associates, after the rate changes, Decatur will still boast the lowest combined sewer and water expenses for industries using 4-inch and 8-inch pipes, when compared to Montgomery, Huntsville and Mobile.