Oxford Board of Aldermen Proposes Water Rate Changes for Future Punkin Water Customers

Rate Structure Defined for Anticipated Changeover

After the anticipated takeover of the Punkin Water Association, the city of Oxford’s Board of Aldermen shared the first reading of an ordinance defining the new water rate structures for incoming customers. Existing Oxford Utility customers will experience no change in their utility costs. Instead, the readjusted rates would solely be for current users of Punkin Water Association.

Alyssa Schnugg, special projects director for the city of Oxford, clarified, “This is only for the current Punkin customers.”

Rates Explained

Starting from when Oxford Utilities assumes control of PWA, the former Punkin customers will be charged the new rates. They will be billed a minimum of $9.74 monthly for using up to 2,000 gallons of water, with the charge then escalating to $4.87 per additional thousand gallons consumed. The rate structure matches the prices for Oxford Utility customers residing beyond the city’s jurisdiction. However, the new rate system includes an additional $12.25 monthly surcharge for the former Punkin customers.

To receive public input, a hearing about the proposed water rates and the amendment of the existing ordinance will be held at the City Hall at 5 p.m. on March 19.

Official Transition Expected in Early Summer

The Punkin Water Association plans to transfer its water source and franchise to Oxford by early summer. As soon as the transfer is finalized, the PWA will commence the process of dissolving the corporation. The association’s existing wells will be closed, and all equipment, excluding the large water tank located off Highway 6, will be removed.

As part of this change, new electronic read-only meters have already been installed. The construct of pipelines to connect the PWA to Oxford is expected to complete within this month. Additionally, the development of a pumping station is foreseen to conclude by May.

Oxford’s Initial Decision

The decision for Oxford to assume control of the PWA was made back in early 2022 by the Board of Aldermen. The move was initiated in response to persistent complaints from Punkin water users concerning the quality of their water supply.

Upon the successful transition, former Punkin customers can expect not only an improvement in their water supply but also a fair and consistent rate system.