WestRock Closure FAQ

Why would WestRock’s closure result in a water rate increase?

Tacoma Water only charges for what it costs to maintain our system and deliver clean, reliable drinking water. We still need to maintain the same water system, but without the revenue we expected from WestRock’s water use, which was about 1/3 of overall use of our water. 

Can Tacoma Water make up the revenue somewhere else?

WestRock’s water use was the equivalent of 100,000 homes. Our staff is looking into additional wholesale sales of our ample drinking water, which could take pressure off rates in future rate cycles but would not be enough to prevent a rate increase in 2024. 

Can’t you cut costs to make up for the difference?

The revenue loss from WestRock’s closure is unprecedented. We are reevaluating the timing and need for some capital and operational projects that were previously planned and/or budgeted, but we would not be able to cut costs enough to avoid a rate increase and still provide the same supply of clean, reliable drinking water to our customers. 

Why doesn’t the WestRock closure reduce operating costs?

System infrastructure and the cost to operate the system is largely unchanged with the mill closure. It is true that chemical costs and solids disposal at the treatment plant will go down with a decrease in the amount of water treated. That dollar amount is very small compared to the overall operational costs. The part of our system (pipes and reservoirs) that served WestRock is now oversized. We are evaluating potential changes to operations which will include capital system modifications and additional flushing ultimately adding expense. 

What if someone else buys the WestRock property and continues to purchase water?

This would partially help, but it is unlikely that another business would use enough volume of water in their operations to make up for the amount used by WestRock and avoid a rate increase. 

Will power rates also go up?

Tacoma Power staff are currently analyzing the financial impacts of Westrock’s closure. As of now, we don’t anticipate having to make rate adjustments in the near term.  

How much will water rates go up?

We have presented several rate proposal recommendations to our policymakers for consideration. The increases in the proposals range from around $2 to $5 more per month for the average household. 

When will the water rate increase go into effect?

If approved, the additional rate increase from WestRock’s closure is expected to go into effect sometime in early 2024. 

Didn’t you already announce a water rate increase for 2024?

A previously approved rate increase will go into effect in January 2024. This rate increase will result in around $2 more per month for the average household and is separate from the proposed rate increase from the WestRock closure. 

What about income-constrained customers who already struggle to pay utility bills?

We will also increase the amount available through our Bill Credit Assistance Program for income-eligible households to help cover the proposed rate increase from the WestRock closure.