The Joplin Globe, Joplin, MO

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November 14, 2008

Water rate to rise 24 percent

From staff reports

news@joplinglobe.com

Joplin residents will see a 24.4 percent hike in water rates following a decision Friday by the Missouri Public Service Commission. The new rates could take effect by the end of the month.

A typical Joplin customer, defined as someone using 5,500 gallons per month, will see the bill for his or her water go from $26.20 per month to $32.58 per month, an increase of $6.38.

That includes the usage and meter charge. But wastewater and trash rates, which also are included in the bill, are not controlled by the water company.

The company had sought an increase for its Joplin customers of 32 percent, which would have raised rates to $34.62 per month.

Missouri American will have to file rate information with the PSC to reflect the decision and then await final PSC approval.

“In the agreement, they asked for it to take effect for service on and after Nov. 28, but that doesn’t guarantee that will happen,” said Kevin Kelly, spokesman for the PSC.

The utility in March filed a rate increase request with the PSC that would raise monthly bills for all of its customers statewide.

Rates are specific to each district in the state and based on each district’s costs under rules set by the PSC.

Friday’s decision also allows rate increases of varying amounts for the water company’s customers in Jefferson City, St. Charles, St. Louis and elsewhere in Missouri. Company customers in St. Joseph will see a decrease of 77 cents in their monthly bill.

Missouri American also was granted PSC approval to raise its Joplin rates 64 percent in October of 2006. That increase pushed the bill for a Joplin customer using 5,700 gallons a month from $16.29 to $26.70. The company later lowered its usage figure for an average Joplin customer by 200 gallons per month to reflect a drop in usage after that rate increase, as well as elsewhere in Missouri, said Christie Barnhart, local Missouri American communications manager.

The 2007 hike was the first general rate increase for Missouri American since August 2000.

In a statement issued Friday, Barnhart noted that the latest increase pays for the second phase of improvements in Joplin, including $34.6 million in construction costs.

“Delivering high-quality, reliable water service requires continued investment in the water plants, pumps and pipelines that make up our water system,” Matthew Barnhart, operations manager in Joplin for Missouri-American, said in a statement.

The previous rate hike was sought to pay for the first phase of improvements to Joplin’s water system, including a million-gallon storage tank in the Crossroads Center Business and Distribution Park, a new intake system and building at Shoal Creek, new wells, some water-main upgrades, and fluoridating the city’s water.

Statewide, Missouri American estimated that during 2007 and 2008 it spent $161.3 million on improvements.

The new rates will generate $34.5 million in revenue for the company, which sought a revenue increase of $49.7 million.

The utility also is citing increased operating costs as justification for part of the increase.

The city of Joplin had filed opposition with the PSC to any increase for the water company in Joplin. Brian Head, city attorney, could not be reached for comment Friday afternoon.





PSC hot line

The Missouri Public Service Commission’s toll-free hot line is (800) 392-4211.



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