CONSOLIDATED UTILITIES, INC. PO BOX 9330 SAVANNAH, GA 31412 October 27, 2017 Consolidated Utilities, Inc. (CU) is committed to providing reliable, safe and compliant water and wastewater services while constantly maintaining our infrastructure against "sing costs of service In order to continue meeting this commitment CU must enact a rate increase, Utility rates were last increased five years prior to this increase, which will take place in January, 2028. Please see the new rates on the next page. Utility rates are established at a level that allows CU recovery of reasonable and prudent costs for providing service and a modest rate of return on necessary investment for infrastructure needed for said service. Operating costs such as electricity, chemicals, and insurance have risen. Also, stricter environmental and water quality regulations have impacted costs to ensure compliance. Moreover, two (2) hurricanes and a tropical storm within 2 12 month span have resulted in higher costs and have depleted reserves which are necessary to attract favorable lending terms. ‘The following are some of our recent, previous and future capital investments which, when finished, will have cost CU almost $4,000,000: CU was the first utility in the State to utilize radio read meters, Later models have proved more durable and smarter than earlier generations. Periodic replacement of older generations is expensive. CU plans to launch a new customer portal and app which will enable customers to monitor and control their water usage «Gravity sewer and lateral inspection project: ‘© Cleaning and inspection of 20,000 feet of gravity sewer and force mains that are corroded ©. Replacement or slip lining of any deficiencies revealed during inspection Elevated and ground tanks painting project, Other capital projects include new aerators and headworks, Miocene and Lower Floridan wells, SCADA, pumping equipment, water/sewer mans and manholes Thank you for entrusting your water and/or wastewater needs to CU. Your utility is committed to superior service and affordable rates. We will continue to provide improvements to the facilities and to overall service adding value to your community.Should you have any questions or concems please | ConsolidatedUtlites.com or calling us at 912-233-3754 let us know by e-mailing us at Rate Change Table-Water & Sewer Current Rate New Rate (Eff. 1/1/18) Base Rate: $32.00 $34.00 Usage: 0-5,000 gallons $3.60 per 1,000 gallons $5.60 per 1,000 gallons 5,001- 10,000 gallons $6.20 per 1,000 Ballons $8.20 per 1,000 gallons 10,001 & up gallons $7.20 per 1,000 gallons $ 9,20 per 1,000 gallons