CWS Water Rate Increase for 2023

As you are aware, financial pressures have affected everyone over the last few years and utilities are no exception. CWS has seen double digit increases in chemical and energy costs as well as
growing inflation pressure across our entire supply chain. In addition to these growing operating costs, CWS must begin our next plant expansion just to keep up with the growing demand for water.

To meet this need, bonds will have to be issued and water rates will have to be increased. Beginning January 2023, the base water rate per meter will increase by $2.75 and the demand charge will
increase by $0.50 per 1000 gallons after the first 1000 gallons of usage. In other words, the average
bill will increase roughly 11%.

Will there be more increases in the future? Yes, but it is too early to know how much the increases will be or when they will take place . As required by Act 605 of 2021 passed by the Arkansas Legislature,
a systemwide rate study will be performed in 2023 and will determine additional rate increases over
time.

Keeping our water system in top condition can be costly, and as a non-profit water utility, our primary means of maintaining quality control and meeting expansion needs is through increased water rates. We should also emphasize that CWS has consistently maintained its rates below the national inflation rate through maximizing efficiencies and replacing old and outdated facilities.

CWS is dedicated to consistently producing and delivering high-quality water to every home and business we serve, each and every day that need exists.