Published Wednesday, December 18, 2002
proposes
46 pct.
rate hike
eyes improvements
Herald Staff Writer
Reynolds Water Co. customers could see a substantial rate hike in the new year, said Brad Gosser, director of operations.
Gosser said the company is seeking permission from the Pennsylvania Public Utility Commission to raise rates for its 730 customers by 46.9 percent, starting Feb. 16.
"I hate to see this type of increase," Gosser said. "We try to keep up with the regulations and keep rates low. I know I don't like it when my utility bills go up."
The company last raised rates in 1998, when bills rose 16 percent.
Gosser said the rate hike is needed to cover expenses related to stricter Department of Environmental Protection regulations.
The rate increase, if approved in full, will generate an additional $153,083 annually for the water company. The money, Gosser said, will be used to pay for water-system improvements, and consulting and engineering fees related to those improvements.
The water company must install new treatment and testing equipment to comply with new environmental regulations.
The regulations deal with what Gosser called "disinfectant byproducts," a generic term for material left in the water after it has been treated.
Reynolds water company draws water mostly from Big Run, a tributary of the Shenango River. After it is pulled into the system, the water is treated with chlorine. The chlorine combines with organic material in the water, creating the byproducts, Gosser said.
The new equipment and testing, Gosser said, "will give better, cleaner water."
Also, the company will be improving its pipe system to give customers better water pressure.
The system improvements will also make it easier for the company to repair line breaks, Gosser said, because the company won't have to shut down as large a section of the network to make repairs.
The rate hike, if approved at 46.9 percent, means a residential customer using 11,000 gallons of water would see his or her bill increase from $60.18 a quarter to $88.35 a quarter. Commercial customers using 2,000 gallons would see their bills rise from $22.90 to $33.63 a quarter, and industrial customers using 209,000 gallons would see their quarterly bills go from $872 to $1,282.
Gosser said the PUC has 60 days to review the request, but he expects to hear in the next couple of weeks. Customer notices of the rate hike were to be sent out today.
You can e-mail Herald Staff Writer Amanda Smith-Teutsch at: ateutsch@sharonherald.com