The Joplin Globe, Joplin, MO

Joplin Metro

Discussion

October 30, 2009

18 percent rate increase sought by Missouri American Water Co.

By Susan Redden

sredden@joplinglobe.com

Missouri American Water Co. has filed an application for a rate increase that would hike the average water user’s bill by nearly 18 percent, or $5.83 per month for the average residential customer.

The request was filed Friday with the Missouri Public Services Commission, which regulates the rates of privately owned utilities in the state.

The water company’s application comes in the wake a 24.4 percent rate increase authorized last November after the company had asked the state for a 32 percent increase. It also comes in the wake of a filing with the PSC on Thursday by Empire District Electric Co. seeking an increase in electric rates of nearly 20 percent.

If approved, the Missouri American request would increase the monthly bill for a typical residential customer using about 5,500 gallons of water by 17.9 percent to about $38.41 per month, according to figures provided by Missouri American.

Company officials said the increase would generate $4.4 million to pay for investments in its Joplin district water system from Oct. 1, 2008, through April 30, 2010, that are not reflected in current water rates.

“Investments in our local water system help ensure water quality, service reliability and fire protection for our customers,” said Matthew Barnhart, operations manager.

Investments cited by the firm include completing Joplin water treatment plant security systems and pump upgrades, replacing pumps and electric equipment at the Hill Street Booster station, work at the water disinfection systems at the well field, and replacing water meters and service lines.

“Of those projects, most are completed,” said Christie Barnhart, local Missouri American communications manager. “Improvements to the Hill Street booster station are in the engineering phase.”

As part of the rate filing, Missouri American also is requesting the Public Service Commission’s approval of a new reduced rate for qualified low-income customers. The proposed new rate structure would translate to a 35 percent reduction in the fixed charge component of the water bill for customers whose income falls below the poverty level defined by the federal low-income Home Energy Assistance Program.

Christie Barnhart said the firm already provides the program in service areas in Pennsylvania and New Jersey, adding, “It’s an extension of our H2O help program.”

A statement by the company said the rates are based on the cost of providing water service. It said the company is working to control operating expenses while making investments in the system, citing costs such as energy, insurance and water main repair costs that have “out-paced the rate of inflation.”

Missouri American Water Co. is a wholly owned subsidiary of American Water and is the largest investor-owned water utility in the state. American Water provides drinking water, wastewater and related services in 32 states, and Ontario, Canada.

Prior to approval of the last request, the city of Joplin filed opposition with the PSC to any increase for the water company. No city officials were available to comment on Friday’s rate request, according to Lynn Onstott, public information officer.



PSC review

The five-member commission normally conducts hearings to determine whether proposed rates are reasonable. In most cases, the commission has up to 11 months to reach its decision. In addition to evidentiary hearings the commission may hold public hearings to allow customers to express their views. The agency’s toll-free hot line is 1-800-392-4211.



Text Only
Joplin Metro