OAWC requests rate increase
Published 12:00 am Thursday, June 3, 2004
Ohio American Water Company has filed an application with the Public Utilities Commission of Ohio to request a 19 percent water rate increase - the highest ever - for their entire service area which includes 3,391 Lawrence County customers, including those in the Chesapeake area.
Statewide, a 19 percent increase for residential customers alone could generate approximately $4.1 million in revenue, according to their 2003 annual report submitted to the PUCO. The report also showed profits were down by $293,067 and that $295,631 was paid out to common stocks and preferred shareholders.
Water rates were increased by 4.9 percent in February 2002.
OAWC spokesperson Joe Loughmiller cited several reasons for the proposed request, including employee benefits, health care costs, pension plans, increased property taxes and security expenses related to the terrorist threat.
Ohio Consumer's Counsel spokesperson, Ryan Lippe, said his organization is closely monitoring the proposal while PUCO analyzes information regarding why a rate increase is being requested.
"This is early on in the process," Lippe said. "We need to build our case up through our own investigation. Hopefully, people will write to PUCO and join us in our interest in residential consumers. We are not the decision-makers - we advocate."
Lyle McComas of Chesapeake said he would not be able to afford to pay any more on a water bill
he already considers to be too high.
"It's not just the water company, it's everything else that's going on - the gas, the electric bill, the milk. This is ridiculous," he said.
A higher water bill would make a big difference in Everett Gillum's life because he lives on a fixed income.
"It's nonsense. We pay enough," the Burlington resident said.
If PUCO approves OAWC's request, customers could expect an additional $12.50 more per month in late summer or early fall, according to company officials.
Pippe is urging customers to contact the Public Utilities Commission at 1-800-686-PUCO or get information on line at www.puc.state.oh.us. The consumer's counsel may be reached at 1-877-PICKOCC or on line at www.pickocc. org.
"We're the state's advocates for residential consumers," Pippe said. "We're concerned about any potential rate increase regarding all utilities."
PUCO spokesperson Sheena Gerber said the case is still pending and subject to commission approval.
OAWC is a subsidiary of American Water, whose corporate headquarters is located in New Jersey. American Water was acquired in 2003 by Thames Water UK division, a part of the German-based RWE Group. RWE Thames Water is the world's third largest water and wastewater company.