United Water Proposes

First Rate Hike In 15 Years

By Kendra Bobowick

An application for proposed rate increases for United Water Connecticut customers awaits the Department of Public Utility Control’s (DPUC) decision.

DPUC spokesperson Beryl Lyons said, “What is the likelihood that they will get everything they asked for? It is rare, but I have seen it in tiny companies.” The outcome is never clear until the end, however. “It is how the facts unfold,” Ms Lyons said. “What they say they need and what they need may or may not be precise.” Comments in a United Water Connecticut release echoing Ms Lyons implications state, “Even if the DPUC were to grant the entire request, the typical United Water customer would pay about $1.64 for a day’s worth of water…”

The water company’s proposed increase is the first in nearly 15 years, and breaks down to 47 cents a day, or $14.33 per month for average customers using approximately 200 gallons daily. Prices aside, Ms Lyons is concerned with the elapsed time. “It jolts the customers, sure,” she said. “We all know prices change in 15 years.” Ms Lyons cannot say specifically if the requested increases will be fully granted, but anticipates a rise in customers’ bills.

“The likelihood says that after 15 years they will go up some,” she said. United Water Connecticut Manager Kevin Moran said that until recent years the company was able to avoid rate increases for several reasons. Community growth and effective cost-saving initiatives held off rates, he said. But more recent trends have created financial pressure.

“We’re in desperate need of increased rates in order to remain viable,” he said.

Further explaining its reasons for wanting to boost rates, the release indicates that the water company has made “significant investments in the system…we have done what we could, for as long as possible to avoid raising your water rates over a number of years. But, the substantial increase in the company’s costs for power, chemicals, real estate taxes, insurance and employee health care all overshadow the cost efficiencies we’ve achieved during the 15 years…”

The utility control department carefully weighs requests for increases. Ms Lyons explained the equation used to measure requests. “We have to figure what the company needs [in order] to offer safe, adequate, and reliable service with the opportunity to be able to earn a return,” she said. Returns are limited, however. “Obviously we set a limit on profit,” she said. In coming months the DPUC will be looking at every aspect of the water company’s books and records.

“The burden of proof is on the applicant,” she said.

The DPUC has scheduled a public hearing for August 2 at 6:30 pm in the lower meting room at the Edmond Town Hall. Residents with any type of comment or concern from customer service treatment to water quality are welcome.

“On August 2 they can say anything they wish about the company,” Ms Lyons explained. “The DPUC takes comments into account.” Customers are also welcome to provide comments at hearings or in writing to the DPUC at 10 Franklin Square, New Britain, CT 06051. Comments can be sent through e-mail to dpuc.executivesecretary@po.state.ct.us. Refer to docket 07-05-44 in any correspondence. Call the water company at 860-354-4118.

Tentative preliminary and final decisions are slated for mid to late October.

The Route 25 corridor is the primary service area for United Water Connecticut from the Sand Hill Plaza to the Bethel town line. Mr Moran said service also branches into a small portion of Sandy Hook and along Route 302/Sugar Street.

The company’s website is www.unitedwater.com/uwct.