Carolina Water Service asks for rate hike

Carolina Water Service wants to increase water and sewer rates, with a decision expected by the end of the year.

While costs vary by area, the average water increase is 20 percent. The average sewer increase is almost 22 percent.

The company applied for a rate increase June 30. The company proposes a “partial transition to uniform rates” following the merger of Southland Utilities, Utilities Services of South Carolina and United Utility Cos. under the Carolina Water name, according to case documents.

Residences would be charged $17.09 per month for water, plus $7.17 for every 1,000 gallons used. Commercial rates vary by size, but use the same $7.17 per 1,000 gallons figure. Sewer rates would be $55.61 for homes, and vary by size for commercial.

Also proposed are a $40 reconnection fee for water, $40 for an elder valve and $500 for sewer if service is discontinued and later resumed.

According to the application, the rate increase is needed for the company to “provide reasonable and adequate service to its customers, cover its expenses, be permitted an opportunity to earn a reasonable return on its investment, and attract capital for future improvements.”

Tom Oakley with parent company Utilities Inc. said current rates do not reflect capital investment and operating expense increases since the last rate adjustment.

“The proposed rate increase is intended to generate adequate revenue to keep the system in compliance with federal and state regulations as well as to recover investment already spent by the company,” he said.

The application also requests the state drop reporting requirements for the utility. A 2013 agreement requires Carolina Water to provide quarterly billing accuracy and call center operations reports to the state. A 2012 agreement requires an annual vacancy survey and report. The utility wants both dropped.

A public hearing is set for 10:30 a.m. Nov. 17 in Columbia. Requests for a local meeting must be made by Aug. 21.

The public service commission lists 10 rate adjustment cases for Carolina Water Service since 1989, including increase requests in 2011 and 2013.

“It’s the rock in your shoe that you can’t get out,” said Winston Martinez, Lake Wylie resident and business owner. “We’ve got all kinds of issues going on in Lake Wylie. One of the biggest issues that we’ve been dealing with is the water company.”

Martinez has concerns about the water service, but the proposed increase is severe, he said. For people like him who have a home and business, the increase is difficult. Selling a home or business could prove difficult, too, he said.

“It’s getting to the point where Lake Wylie is no longer competitive,” Martinez said. “That could make or break a real estate deal.”

Statewide, the company spent more than $13 million upgrading or maintaining its system since the last increase, Oakley said.

“Under the proposed new rates, safe and reliable drinking water delivered to our customers’ faucet will still cost less than 2 pennies per gallon,” he said.

Mail public comments to Public Service Commission of South Carolina, 101 Executive Center Drive, suite 100, Columbia, SC 29210. Label commens with the case docket, 2015-199-WS.

To request a local meeting, write to the Office of Regulatory Staff at 1401 Main St., suite 900, Columbia SC, 29201 asking for it. Refer to Docket 2015-199-WS.

For more information, search the docket number under “find a docket” tab at psc.sc.gov.

This story was originally published August 12, 2015 at 2:40 PM with the headline "Carolina Water Service asks for rate hike."