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Gem State Water customers may see rate hikes

HAILEY HILL | Hagadone News Network | UPDATED 7 months, 1 week AGO
by HAILEY HILL
Staff Writer | June 20, 2025 1:00 AM

ATHOL — Gem State Water customers may soon be paying more for their water.

According to documents from the Idaho Public Utilities Commission, the company is seeking to both lower the water allowances included in monthly charges and increase rates per 1,000 gallons over those allowances.

While cost increases would vary by district, most customers could expect to see a minimum 53% increase depending on water consumption, documents show. Others could see increases of up to 193%.

Gem State Water customer Diane Pryor said under the plan, her water rates would rise about 80%.

“This is an outrageous increase,” Pryor said.

The Oregon-based company serves about 3,750 former customers of Spirit Lake East, Bar Circle “S,” Lynnwood, Bitterroot, Troy Hoffman, Happy Valley and Diamond Bar water customers.

In their application to IPUC, Gem State Water said the rate hikes are to “recover the current cost of operating and maintaining the water systems, which have escalated in recent years."

Rate hikes would also cover “prudently incurred system improvements, and recent investment to replace aging infrastructure,” according to the company.

The city of Coeur d'Alene is also considering raising its water rates to fund an eight-year, $84.3 million capital improvement plan. 

According to Gem State Water's application to the IPUC, Happy Valley residents with a 1-inch meter currently are allowed up to 15,000 gallons of water per month, with an overage rate of $1.45 per 1,000 gallons. 

Under the proposal, the gallons allowed would be 5,000, with an overage rate of $4.50.

In the Diamond Bar Estates, those with a 2-inch meter currently are allowed 35,000 gallons a month with an overage rate of $2.45.

Under the proposal, those figures would change to 20,000 gallons and $4.50.

The company said lowering the amount of water included in the monthly charge is needed because the current "allowance is contrary to the goal of encouraging conservation."

Though a customer hearing was held Wednesday at the Athol Community Center, Pryor said she and her neighbors didn't know of it until that day.

IPUC reported receiving 197 public comments on the rate hike proposal, the most common topics being requests for a lower or “phased-in” increase, concerns over irrigation of large properties and complaints that the information was insufficient or confusing, among others.

The proposed effective date for these increases is currently Aug. 1, but the IPUC must issue a final order to close the case.

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