Utility Provider Seeking another rate increase

Started by EdwardE • 11 replies • 2859 views

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EdwardE (North Carolina)
Posts: 6

Posted:

I live in Salem Glen, a small golf course community near Winston-Salem North Carolina. Our developer built a waste water treatment plant to serve our community, and subsequently sold it to a for profit utility company who finally sold it to Aqua NC (a division of Aqua America). Since Aqua took over a little over a year and a half ago they have sought and received a monthly rate increase from $48 per month to $63 flate rate per month. Now they have notified the NC Utilities Commission of their intent to seek another rate increase. A small number of communities opposed the first increase, but it was a David vs. Goliath fight against a well-managed company with lots of resources including an attorney who was a past chairperson of the state Utilities Commission.

I am appealing for other affected residents across NC to join together to oppose this second increase. If you read this and are in an affected community, would you please respond so we can collect contacts from home owners associations who would join us at least in a letter writing campaign to oppose this proposed next increase.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I can see why you would oppose an increase, but did you ever ask why they need to increase rates? I'm sure they provided a detailed report to the Utilities Commission. You should ask to see it.

EdwardE (North Carolina)
Posts: 6

Posted:

of course we did - hired an attorney, went to two Utility Commission meetings (testified at one with local TV station coverage), wrote to state attorney general, collected 500 signatures on a petition, wrote to governor.

this utility company has done this same thing in many states.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Looks like your stuck. Sorry.

FredB4 (Ohio)
Posts: 375

Posted:

We had the same problem in Ohio. Our utility company changed and there has been several rate increases since then. Wasn't much we found that we could do about it since the rate hikes were approved by the state.

MikeV (New Mexico)
Posts: 31

Posted:

Edward,

We're currently going through the same thing here in South-Eastern PA. Our company is also Aqua America (Aqua PA) and we have an on-site treatment facility much like yours. It looks like Aqua America is on a nation-wide march to increase rates simply because they are able to do so. In their filing they claimed increased operating expenses, etc., etc., etc.

You should be able to hop on your state's utility commission website and see the rate increase filing documents which might lead you to the other communities that are serviced by Aqua who will also be receiving rate increases. The PA Utility Commission's website is pretty good. If NC website does not offer this, perhaps you can contact the commission directly and speak to someone.

What we did as a community was encourage individual residents to object and officially oppoes the rate increase. The HOA Board made an objection on behalf of all homeowners. And we followed it up with a petition that was also an objection to the rate increase. Aside from that, we didn't think there was much else we could do that wouldn't be financially burdensome (i.e., legal fees). We saw a neighboring township fight a similar battle to the tune of $50K in legal expenses with very little outcome in the way of a reduction in the requested increase.

So we concluded that the company will request the increase and the utility commission will approve some type of increase (hopefully something smaller than was requested). In the end, lawyers rake in huge profits due to legal fees, Aqua wins big with the increase and huge future profits, and individual homeowners lose. I think that's just how it is nowadays.

Not sure if that helps you in any way. Good luck!

EdwardE (North Carolina)
Posts: 6

Posted:

Mike thanks for the comments. In the 4th quarter of 2009, we fought Aqua at Utilities
commission hearings. We also had an attorney do some work for us. Just a few days ago, an associate of mine and I went to the NC Public Staff office in Raleigh and sorted through hundreds of pages of documents try to find a chink in Aqua's armor. I am aware of rate cases in NC, Fl, Ohio, Indiana. I will keep you posted by this forum on what we are doing.

Aqua America's business plan is to grow by acquiring and I believe they finance that activity by rate increases.

SusanN1 (North Carolina)
Posts: 1

Posted:

I am in an affected area outside Raleigh, NC. in Wake County and we have had to put up with Aqua America for years. I have been trying to find out when the Aqua meeting is but can't get a response from Utilities Commission. Our community is just now awakening to the scandalous doings of Aqua America with their flat rate charging and rate increases for little to no upgrades that anyone has ever seen. So we are anxious to hear what others have done or are going to do.

EdwardE (North Carolina)
Posts: 6

Posted:

Today I learned that the Utilities Commission will be sending out information about the proposed Aqua rate increase and a schedule for hearings within the next three weeks.

Meanwhile, the NC Utilities Commission docket w-218, sub 274 contains Aqua's rate increase request, and a dialogue of ongoing inormation including protest letters and emails.

EdwardE (North Carolina)
Posts: 6

Posted:

correction - the docket information is w-218, sub 319

EdwardE (North Carolina)
Posts: 6

Posted:

Susan - Juli Williams in Raleigh has been quite successful in organizing local efforts to protest the Aqua increase. She told me this morning that she would help your neighborhood get started. She is a "go-getter". You can contact her at
([email protected])

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Interesting article about aqua america.

http://www.smartmoney.com/invest/stocks/ceo-interview-aqua-america-1309906785580/?link=SM_highlights#article_tab_article

I could see them talking over for cities everywhere.

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