ECUA considers 74% septage rate hike to eliminate $1.2 million ratepayer subsidy

ECUA considers 74% septage rate hike to eliminate $1.2 million ratepayer subsidyA cost-of-service study presented to the Citizens' Advisory Committee indicates that current fees for septic and grease haulers fall far short of processing costs, prompting discussions on phased rate increases.

A cost-of-service study by Arcadis revealed the actual cost to treat septage is $141.22 per 1,000 gallons, significantly higher than the current $81 rate.

Director of Water Reclamation Randy Sears stated that standard sewer ratepayers are currently subsidizing haulers by approximately $1.2 million per year.

The utility has not updated these specific receiving rates since 2012.

Committee members discussed phasing in increases or moving to 'full truckload' billing to mitigate the financial shock to haulers and homeowners.

The Emerald Coast Utilities Authority (ECUA) in Pensacola, Florida, is reviewing a potential restructuring of its rates for high-strength wastewater and septage receiving after staff identified a substantial gap between current fees and actual treatment costs. During a Citizens' Advisory Committee meeting on February 17, 2026, Director of Water Reclamation Randy Sears presented findings from a rate study conducted by Arcadis. The data showed that while the utility currently charges haulers $81 per 1,000 gallons for septage, grease, and portalet waste, the actual cost of service has risen to $141.22 per 1,000 gallons. Sears noted that the rates were last adjusted in 2012. The discrepancy has resulted in a financial imbalance where the utility's general sewer ratepayers are effectively subsidizing private septage haulers. "Our ratepayers are subsidizing these haulers to the effect of almost $1.2 million a year," Sears told the committee, emphasizing that the proposed adjustments are based strictly on cost recovery rather than profit generation. The proposed increase to $141.22 would represent a roughly 74% hike. Committee member Kevin Stephens (District Five) expressed concern regarding the "shock and awe" of such a drastic jump, noting it would make ECUA the most expensive among peer utilities cited in the presentation, including Mobile and Okaloosa County. Stephens also warned that haulers would likely pass these costs directly to homeowners with septic systems. "I think we should probably make those match," Sears said regarding aligning industrial rates with the new septage calculations, though he acknowledged that operational differences, such as permit limits for phosphorus and nitrogen, make direct comparisons with neighboring utilities difficult. For example, Sears noted that a neighboring facility with lower rates does not have the same stringent nutrient limits on effluent discharge that ECUA must meet. To mitigate the impact of a sudden rate spike, the committee discussed alternative billing structures. One proposal involves charging haulers for full truck capacity rather than actual volume discharged, which could improve operational efficiency at the receiving station. Sears estimated that moving to full-truck billing might allow the per-gallon rate to land closer to $120 rather than the full $141. Committee member Dale Perkins (District Four) suggested phasing in the increase over three years rather than implementing it immediately. No final vote was taken on the specific rate adjustment. The committee directed staff to refine the options, potentially engaging with local haulers for feedback, before bringing a final recommendation to the Board.