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RE PUCO Case#: 09-0391-WS-AIR
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PUCO approves agreement establishing new rates for Ohio American Water
COLUMBUS, OHIO (Nov. 12, 2008) - The Public Utilities Commission of Ohio (PUCO) today approved an agreement that allows Ohio American Water Company (Ohio American) to increase its water and wastewater rates.
The agreement, filed on behalf of Ohio American, the Ohio Consumers' Counsel, PUCO staff, Dragoo Management Company and the City of Marion, provides Ohio American with a rate of return of 8.12 percent.
Customers in Ohio American's Ashtabula, Lawrence County, Marion and Tiffin service areas will see an average increase of 11.18 percent for water service. Customers in Ohio American's Portage County and Franklin County service areas will see an average increase of 30.37 percent for water service; and Ohio American customers will see an average increase of 36.94 percent for wastewater service.
The stipulation approved today by the Commission also addresses the following:
* In the company's next application for a rate increase, Ohio American will propose a step increase program that will provide for annual increases to the company. During this proposed step increase period, the company will not file for another rate increase.
* Ohio American will provide budget billing information on bi-monthly customer bills.
* The company will not disconnect a customer's service unless the amount owed is greater than $75.
* Ohio American will operate and maintain the Lake Darby Water Treatment Plant ion exchange softening program.
* The company will operate the Huber Ridge plant's reverse osmosis and treatment processes.
* Ohio American will actively solicit additional third-party collection vendors in Franklin County to enable customers to pay bills and make service appointments.
* By the end of 2008, one half of customers in the Mansfield systems will have metered service available.
In approving the agreement, the Commission found that the rate increase should enable the company to recover expenses while improving water quality. The agreement also includes specific commitments that are designed to address water quality and service issues.
Ohio American filed an application to increase rates on Nov. 13, 2007. Local public hearings were held in Mansfield, Marion, Galloway and Westerville. The stipulation was filed on Sept. 4, 2008.
The approved rates will become effective when Ohio American files tariffs consistent with today's Commission opinion and order. A copy of today's Commission opinion and order is available at www.PUCO.ohio.gov. Click on the link to Docketing Information System and enter the case number 07-1112-WS-AIR.
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07-1112-WS-AIR
The Public Utilities Commission of Ohio (PUCO) is the sole agency charged with regulating public utility service. The role of the PUCO is to assure all residential, business, and industrial consumers have access to adequate, safe, and reliable utility services at fair prices while facilitating an environment that provides competitive choices. Consumers with utility-related questions or concerns can call the PUCO hotline at (800) 686-PUCO (7826) and speak with a representative.
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"Stipulation and Recommendation" (THIS IS NOW HISTORY AND RELATES TO OUR 2008 RATE INCREASE)
The “Stipulation and Recommendation” has been entered into the PUCO docket information case no. 07-1112-WS-AIR regarding Ohio American Water rate increase application on September 4, 2008. The stipulation is not binding upon the Commission. The stipulation is a documentation that represents a cooperative effort among the parties petitioned to this case. The PUCO Commissioners must approve this “Stipulation and Recommendation” before it becomes official.
To briefly summarize the 52-page entry, the entry outlines a proposed monthly customer charge of $9.51 per month for a 5/8” meter; $9.41 is our current charge--an increase of $.10 a month. Water consumption charge for basic water service for the first 13.33 ccf will be increased to $5.0449 per ccf. Currently we are paying $3.2074 per ccf--a increase of $1.8375 per ccf.
Sewer consumption charge: The first 13.33 cubic feet increased to $8.2600 per ccf; our current charge for wastewater is $6.0173 per ccf--an increase of $2.2427 per ccf.
Reverse osmosis charge will be $1.19220 per ccf; our current charge for reverse osmosis is $1.325 per ccf. This will be a decrease of $.1328 per ccf.
This is an increase for Franklin County of 30.37% increase for water and a 36.94% increase for wastewater under this “Stipulation and Recommendation.”
In November 2007, Ohio American Water applied for a rate increase asking for an increase of 36.8% on wastewater and a 26.81% increase for water. Please note the “Stipulation and Recommendation” percentages are higher than what Ohio American Water originally asked for.
Huber Ridge water treatment plant customers were exclusively mentioned in this “Stipulation and Recommentation.” To summarize: it is no different than the previous rate increase that improved the water quality but did not resolve all of the issues. In my opinion, repeating the same measure is no fix. This recommendation allows the OAWC to sample the water quality at the plant’s service tap; this does not account for any infrastructure (lines) problems in our community that may be causing our quality concerns.
To review this entire 52-page report, you can double-click on our PUCO link under “Community Links.” Enter 07-1112-WS-AIR in the Docket Information block on the PUCO website. From there, you can view everything!
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It is official - the OAW WATER/SEWER RATE INCREASE request is listed Nov 13, 2007 under case number 07-1112-WS-AIR on the PUCO docket.
Also listed on the PUCO docket November 20, 2007, is the Ohio Consumers' Counsel motion to intervene on behalf of all residential utility consumers of the Ohio American Water Company.
The letter we received from OAW (approximately October 12, 2007)is for another rate increase. Our letter does not spell out just how much the rates will increase like the letter to the trustees and Jim Welch does.
In a letter to Jim Welch, President of HRAA, dated October 12, 2007, OAW outlines the newly proposed increase to "cover costs previously incurred. This is another request - not a statement of the last rate increase as some have thought.
"In October 2007, Ohio American Water will apply to the Public Utilities Commission of Ohio (PUCO) to increase its overall rate by 16.38%. The average water customer bill for 7 ccf used monthly would increase by 26.81%, or an additional $11.03 every month, or $0.37 per day. The average sewer customer bill for 7 ccf used monthly would increase by 36.80%, or an additional $15.50 every month, or $0.52 per day. The average combined water and sewer customer bill for 7 ccf used monthly would increase by 31.86%, or an additional $26.53 every month, or $0.86 per day.
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