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Date: Fri 24-Oct-1997

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Date: Fri 24-Oct-1997

Publication: Bee

Author: ANDYG

Quick Words:

Fairfield-Hills-fire-mutual

Full Text:

Water Company Seeks Rate Increase

NEW MILFORD -- United Water Connecticut filed an application on Tuesday with

the Connecticut Department of Public Utility Control requesting a 2.4 percent

rate increase.

United Water President David Chardavoyne said the rate increase was needed to

help the company comply with a new financial accounting standard, required

under changes in the Connecticut tax law, for its employees' retirement

benefits. Under the filing, United Water requested that the rate increase

become effective on or before January 1, 1998.

"All of this request is needed to comply with a new financial accounting

standard dealing with retirement benefits for medical and life insurance,"

said Mr Chardavoyne. "Previously, all utilities accounted for these expenses

on a pay-as-you-go basis, recording the expense and receiving ratemaking

treatment for it as the benefits were paid out. The new accounting standard

requires that these expenses be recognized when employees are actually

providing service to customers and earning the future retirement benefits."

If approved by the PUC, the company's request for rate relief would increase

the average residential customer's quarterly bill by about $2.32, bringing the

average bill to $98.45. United Water Connecticut, a subsidiary of United Water

Resources, provides water service to more than 4,600 customers, including

1,036 in Newtown. The company's last rate increase was in 1993.

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