Thursday, February 25, 2010
Planned water rate increase sparks outcry in Botetourt County
Many Botetourt County residents beg the SCC not to allow the increase.
Residents from across Virginia, including Botetourt County, urged a State Corporation Commission hearing examiner Wednesday to reject water company Aqua Virginia's request for a stiff rate increase, some calling it "outrageous."
But there is hope for frustrated customers: The SCC staff is recommending a smaller increase, prompting a lawyer representing Aqua Virginia to acknowledge the SCC likely will not grant its request.
In Botetourt, where Aqua Virginia serves about 2,250 customers in 18 subdivisions, the proposed rate increase would cause average bills to jump more than 60 percent.
Aqua Virginia has more than 26,000 water and sewer customers statewide. Some customers would see their water rates jump more than 100 percent under the company's plan. At Wednesday's hearing customers complained that the rate increase -- temporarily in effect since December -- would add hundreds of dollars to their annual water and sewer bills.
"We the people of Botetourt strongly oppose this proposed rate increase, which we feel is just outrageous," testified county Supervisor Billy Martin. "Just how much profit do they need to make from their customers?"
"It's usury," complained Rosemarie Ambs of Caroline County.
The company argues that its plan to increase its revenues by $3.2 million each year -- from the current $9.4 million to more than $12.6 million -- is necessary in part to pay for $44 million in infrastructure upgrades the company has undertaken since 2003.
In Botetourt, the company's proposed increase would see customers' monthly fixed fee jump from $7.50 to $20.77. Meanwhile, the price per 1,000 gallons of water use would rise from $3.90 to $4.78.
The SCC staff is recommending a revenue increase of about $1.9 million for Aqua Virginia. That could be achieved, according to staff analysis, by limiting the monthly fixed fee to $12, while setting the price per 1,000 gallons at $5.54.
Attorney Anthony Gambardella, representing Aqua Virginia, said he realizes the company probably won't get the increase it's looking for, but he said the staff's recommendations are "too gradual."
Del. Lacey Putney, I-Bedford, testified that he hasn't seen his Botetourt constituents so agitated in decades -- in fact, not since an effort many years ago to allow the sale of "whiskey by the drink."
Across the state, more than 2,800 people have written letters of protest to the SCC, and more than 1,400 Botetourt customers signed a petition opposing the rate increase.
"It appears the rate increases are unreasonable," Putney said.
The hearing is set to continue today. After listening to residents, local officials and company representatives, hearing examiner Howard Anderson will make a recommendation to the commission on the proposed rate increase.




