Carolina Water Service rate increase approved
Water rates in Lake Wylie are going up.
The South Carolina Public Service Commission voted Dec. 16 to allow new rates for Carolina Water Service. The commission had until Dec. 30 to decide.
“The Carolina Water Service settlement was approved by the Public Service Commission by a unanimous vote,” said Jeff Nelson, attorney for the South Carolina Office of Regulatory Staff.
Stakeholders and the company in November filed a settlement agreement to allow increased rates, but for less than what the company requested in June. New rates vary by area, based on services provided by Carolina Water.
The settlement increases the base water charge for York County customers 17 percent, the per gallon charge more. Larger commercial users will pay higher rates. Base sewer rates will increase 28 to 78 percent, from areas whose wastewater the company treats, to those whose wastewater is sent to a municipality for treatment.
Other fees that make up total water and sewer bills either remained the same or were eliminated by the settlement, meaning the bottom line on bills may not have quite the sticker shock.
A home using 4,000 gallons of water per month in Lake Wylie would see a total increase of 13 percent for water and 19 percent for sewer.
The initial request was to increase water rates 20 percent system-wide, 22 percent for sewer. York County rates were up for a 37 percent base charge and 52 percent per gallon increase for water, 23 percent for sewer.
About 68 customers statewide, mostly from Lake Wylie, protested the rate increases according to the case docket. At public hearings in Rock Hill and Clover, commissioners heard from more than 30 people.
“Their service is horrible and they keep getting these rate increases,” Ridgewood Farm resident James Ocker told commissioners Oct. 29 in Clover. “And nothing changes. This is just wrong.”
The settlement included signatures from the state Office of Regulatory Staff and Forty Love Point Homeowners Association, two of three intervening parties in the case. The third, Don Long of Lake Wylie, wasn’t part of the settlement.
“It’s my belief the increase is more than it should be considering the low rates of inflation present over the last two years, and the short duration of the current rate schedule,” he said in an email after the decision.
In the motion to approve the settlement, Commissioner G. O’Neal Hamilton stated the agreement was “a just and reasonable resolution of this case” and that utilities are legally entitled to recover expenses and capital costs.
“The (state) supreme court has held that customer testimony regarding poor quality of service and high rates, alone, are not generally sufficient to support a denial or reduction in rate relief.”
Hamilton also noted recent denials of rate increase requests for Carolina Water and related companies, which were reversed by the state court.
“Our decision today is consistent with those recent supreme court decisions and fully supported by the evidence in the record of this case,” Hamilton said.
Long, who throughout argued to see audited financial statements from the company, would like to have seen more done by the commission.
“It seems like an overall increase of 5 percent to 7 percent would have been more appropriate,” he said, “but the use of unaudited statements by the water and sewer service provider, and the Public Service Commission’s unwillingness to insist on independently audited statements makes it virtually impossible to determine reality.”
John Marks: 803-831-8166
What they’re saying
Customers opposing Carolina Water Services’ rate hike cited price and service problems. Here’s what they said:
▪ “If it were left to the public, they would not use them, because the service simply has not been there. Unfortunately, they’ve been granted increases because they control the numbers, and they’ll start off at a return on investment of 15 to 20 percent and then settle for 9 to 10 percent.” - S.C. Dist. 48 Rep. Ralph Norman at the Oct. 15 public hearing in Rock Hill
▪ “You’ve heard every one of these stories a million times. You’ve been at the meeting at the school hall off Springfield Parkway, when there was a regular brouhaha. I don’t think it’s at all a mystery why the water company lawyers never have any questions whatsoever for anyone who testifies. I would like to propose it’s because we are telling the truth, and the truth is hard to argue with.” - Jim Knowlton, Foxwood resident
▪ “This system does not work. Absolutely does not work. And we’re being taken advantage — you can’t believe what this does to a small business out here. When you’ve got a little restaurant that’s paying $500 a month for water and you’re using less than 20,000 gallons, no wonder little businesses are failing all over the country.” - Ken Bozeman, Plantation Square owner
▪ “Unincorporated Lake Wylie covers approximately 51 square miles, is serviced primarily by Carolina Water Service, and has the highest water and sewer rates compared to the nine major water and sewer systems in and around York County and surrounding Carolina Water Service’s service area.” - Jack Leff, president of River Hills Homeowner Association
▪ “We’ve lived there approximately 17 years and the water has been poor quality the whole time we’ve lived there. We’ve complained and complained. In July, it seems like it got worse.”- Dean Shillinglaw, York resident
▪ “I have a hard time thinking anybody should be paying for that water, much less paying an increase on it. So, as the councilmember representing the smaller part of who’s here tonight — because I do not represent Lake Wylie, but I still represent York County citizens. I would like to ask that you deny their request for an increase, and that we continue to work on correcting the issues of water that we’re expecting our citizens to drink.”- York County Councilman Robert Winkler, Dist. 3
▪ “We are concerned on how our members will be able to be effective with this increase of 23 percent in water and sewer rates. We want new, vibrant residences in the Lake Wylie area. We want to consider incorporating the Lake Wylie area and, when that happens, maybe one of the first things that we’ll do is find a way to buy out Carolina Water system and operate our own water department.” - Charles Wood, board chairman of the Lake Wylie Chamber of Commerce
This story was originally published December 16, 2015 at 4:10 PM with the headline "Carolina Water Service rate increase approved."