H2GO System Development Fees Increase Significantly Effective July 1, 2026
WCFHBA Member Alert released on July 8, 2026
Wilmington-Cape Fear Home Builders Association is alerting members to a substantial increase in H2GO’s System Development Fees (SDFs), which became effective on July 1, 2026 and will directly impact the cost of new housing and commercial development within the utility’s service area.
New System Development Fees
– Water SDF: Increased from $5,600 to $7,000 per Equivalent Dwelling Unit (EDU) (25% increase)
– Sewer SDF: Increased from $6,000 to $8,800 per EDU (46.7% increase)
Combined, the total water and sewer capacity fee has increased from $11,600 to $15,800 per EDU, representing a 36% increase in upfront development costs.
H2GO’s Rationale
According to H2GO, the fee increases are intended to fund major water and wastewater capacity expansion projects planned between FY2027 and FY2031 to accommodate anticipated growth. The utility retained Hazen and Sawyer to conduct an updated System Development Fee Analysis, which was presented for public comment and reviewed during a public hearing before the H2GO Board of Commissioners adopted the new rates as part of the FY2027 budget.
The Wilmington-Cape Fear HBA notes that the analysis utilizes the incremental cost methodology, which assigns the cost of future infrastructure improvements on the development community needed to support growth to future development rather than existing ratepayers.
Furthermore, based on the Hazen and Sawyer analysis, H2GO elected to adopt the maximum fee levels permitted under the study’s recommended methodology.
The H2GO System Development Fee Analysis can be accessed here.
WCFHBA is highly concerned about the magnitude of these increases and their impact on housing affordability in our region.
What WCFHBA is Doing
The Wilmington-Cape Fear HBA is actively reviewing the Hazen and Sawyer System Development Fee Analysis in its entirety. We want to ensure that the methodology, project assumptions, and cost allocations are accurate and equitable.
Of particular interest is the extent to which certain capital improvement projects identified in the analysis involve infrastructure that serves both H2GO and Brunswick County customers. WCFHBA is evaluating whether costs associated with these shared facilities have been appropriately allocated and whether the resulting fees accurately reflect the portion attributable to future development within the H2GO service area.
Member Action Requested
If you have projects located within the H2GO service area, WCFHBA encourages you to:
– Review the updated fee structure and assess project impacts.
– Share with the Wilmington-Cape Fear HBA any concerns, cost implications, or project delays resulting from these increases by emailing the Association’s Executive Officer at cameron@wilmhba.org.