Settlement reached in Carolina Water Service rate case

A final decision on the Carolina Water Service rate case could come Dec. 16.

A settlement between the company and stakeholders would grant water and sewer increases, but not at the rates the company applied for earlier this year. Jeff Nelson, chief counsel with the South Carolina Office of Regulatory Staff, said he expects the state Public Service Commission to vote on the proposed settlement at its Dec. 16 meeting.

Under the settlement, residential customers and smaller commercial users in York County would pay 17 percent more for water as a base charge, and more than 20 percent more per 1,000 gallons used. Larger commercial users would pay varying, higher rates based on meter size.

Where the company collects and treats sewer, monthly rates increase 28 percent for residential and commercial, 31 percent for mobile homes. Where the utility collects sewer but sends it to a municipality for treatment, prices increase 78 percent for residential and commercial.

The commission has until Dec. 30 to issue a final ruling.

“The settlement would be applicable to the entire Carolina Water Service service territory if it is approved by the Public Service Commission,” Nelson said. “It does set new rates for both the Lake Wylie/York County area, as well as the other service territories of Carolina Water Service.”

In June, the company applied for rate increases as it transitioned from four utilities to one. Average increases throughout the system were 20 percent for water, 22 percent for sewer.

“Because Carolina Water Service recently consolidated from four companies into one, there will still be different rates in several of these territories as they move toward a single systemwide rate structure,” Nelson said.

In the York County area, residential base charge would increase 37 percent locally, with 52 percent increase per 1,000 gallons of water, according to the initial filing. Sewer increases would be 23 percent.

The service commission published a joint order Dec. 4 showing a settlement reached by Carolina Water, the Office of Regulatory Staff and Forty Love Point Homeowners Association. The parties reached the agreement Nov. 13. The only other intervenor in the case is Don Long of Lake Wylie. He isn’t listed in the settlement.

The agreement still requires public service commission approval.

Tom Oakley with Utilities Inc., parent company of Carolina Water Service, said his group has made its case for the increases, which include infrastructure improvements already made and a reasonable return on investment allowed by law.

“The hearings have concluded, and we’re awaiting the commission’s decision, which we expect before the end of the year,” he said.

This story was originally published December 9, 2015 at 1:08 PM with the headline "Settlement reached in Carolina Water Service rate case."