Gem State Water said Wednesday it received final approval from the Idaho Public Utilities Commission on adjusted rates and tariffs for its water customers. 

The new rates were finalized in late September by the IPUC.

Gem State Water, owned by NW Natural Water based in Portland, Ore., operates water and wastewater utility services in the Coeur d’Alene area. It serves about 3,750 people through 1,500 connections in seven water systems.

“We recognize the impact these changes may have on our customers and remain committed to supporting them. At the same time, we’re obligated to meet state standards for billing accuracy and water quality,” said Marshall Thompson, interim general manager, Gem State Water, in a press release. 

The rates went into effect Aug.1. In accordance with IPUC rules, customers will be charged at new rates beginning in the October billing period, with additional charges for underbilled volume in August and September back to the effective date of Aug. 1.

A prorated charge for underbilling will result in an average charge of $44.44 per month for residential customers, the release said. 

Since being acquired by NW Natural Water, Gem State Water has made significant investments to modernize and upgrade water delivery systems in recent years, according to the release, including $4 million for new meters and meter-reading technology; $1.8 million for backup generators and new pumps; $1.2 million for water mains; and $650,000 for well improvements 

The new rates will also help consolidate billing and accounting, while reducing the number of separate rate schedules from seven to two, the release said.

Gem State had sought commission approval to increase rates between 53% and 79%. The monthly bill for an average customer receiving water from a 1-inch meter would have increased between $21.65 and $27.65, according to the IPUC. 

Gem State had sought approval for an increase of $602,050 in its annual revenue requirement to recover the cost of operating, maintaining and improving water systems and investments to replace aging infrastructure. 

Customers had expressed concerned about the rate hike.

Larry McGinnis of Athol, in an Aug. 30 letter to the IPUC, wrote, “All those affected have a minimum of approximately 5 acres and own livestock and or farm animals and gardens and vegetation that requires a larger amount of water to maintain. It just doesn’t seem fair.” 

Dick Standish of Rathdrum, in a June 30 letter to the IPUC, wrote, "We, and neighbors, work hard to keep our yards neat, clean and green. To have such a drastic increase in the cost of water is just going to turn our neighborhood into a dead, brown dust bowl.” 

Some customers who have 1-inch meters will see their monthly charge increase from $35 per month to $46 per month. Some customers with 1-inch meters are allotted 7,500 gallons, while others are allotted 15,000.

The commission set the commodity rate at $4.07 per 1,000 gallons after customers use their allotted number of gallons. 

The changes will give the utility an increase in its annual revenue requirement of $373,888, the IPUC said in a press release 

Gem State Water projects ahead include long-term system facility planning and an initiative to identify and reduce water loss on each system.