The Herald, Sharon, PA Published Wednesday, November 20, 2002


Water-rate hike
likely on horizon

Greenville Council President Bryan Langietti said a possible hike in water rates was one of the main arguments against selling the town's water-treatment plant when the idea cropped up in the spring.

But, Langietti said, many people would be willing to pay more for their water if it meant improved quality and stability.

That may be especially true now, in the wake of the recent pump problems at Greenville Municipal Authority's plant. For more than a week, its 3,700 customers had to boil their water to ensure it was safe for drinking and -- after more than two weeks -- they are still being urged to conserve water. Last week, council issued a statement blasting the municipal authority for delivering a "defective product" and saying, "The deficiencies in recent weeks added to a lackluster performance the community has had from the local water company."

Customers who were worried that a potential sale might mean higher rates are probably facing higher rates anyway. At its Oct. 29 meeting, the muncipal authority board discussed raising rates to pay for a multi-million dollar capital-improvement project already in progress.

Dr. John Brown, vice chairman of the authority board, said a temporary increase might be necessary to make sure the authority has enough money available to make improvements. He said rates could be reduced later.

Unlike private utility companies, which must get clearance from the Public Utilities Commission before they can raise rates, municipal authorities in Pennsylvania do not have to answer to the PUC. A spokesperson for the PUC said municipal authorites can raise the rates they charge for utilites whenever they want and for whatever reasons they see fit.

The rate increase was discussed as part of the possible sale of nonperforming assets owned by the authority, namely timber and land. If $100,000 was not raised from the sale, said board Treasurer Dick Miller, a 10 percent rate hike would be needed.

Overall, the municipal authority carried a debt of about $4 million, "before we started pumping out money instead of water," board Chairman Jack Dershimer said.

Some of the recent costs incurred with renting pumps and mobile water tanks will be covered by the authority's insurance carrier, but the board hasn't discussed how to deal with the balance.

"Our rates are well below the state average," Dershimer said. "We were probably looking at a rate increase down the road anyway. We will try to keep rates at the lowest level possible. With recent tax increases, some people have very little left."

Board members have said the average yearly bill of a customer is about $250, which they say is $100 lower than the state average.

A spokesperson for the PUC did not have information on the average water bill in Pennsylvania.



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