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Fasano Wants Aloha Out

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By CHRISTIAN M. WADE, The Tampa Tribune

Published: November 21, 2007

NEW PORT RICHEY - A high-ranking Republican lawmaker has asked the state Public Service Commission to remove Aloha Utilities' service area in west Pasco County, arguing the private water provider has failed to comply with a 2006 settlement.

In a letter to commissioners, state Sen. Mike Fasano requested regulators reconsider a demand from Aloha customers, originally made five years ago, to move forward with what's called deletion of territory.

Fasano said the settlement, aimed at resolving years of water quality issues, is more than a year behind schedule and questioned the utility's determination to make it work.

"More than 19 months after this agreement was approved, Aloha customers are no closer to receiving the clean, drinkable water that they were promised," said the New Port Richey lawmaker, an Aloha customer and critic who helped broker the settlement.

Aloha President Steve Watford was on vacation this week and couldn't be reached, according to Carol Cassara, vice president of Tucker/Hall, a public relations firm.

Aloha serves about 25,000 households in Seven Springs and Trinity.

The latest back-and-forth comes on the heels of a report by an Aloha consultant that raises questions about the feasibility of a proposed water treatment system.
David Gomberg expressed concerns in his report about the potential environmental impact of wastewater from that system.

Steve Reilly, a representative from the state Office of Public Counsel who is overseeing Aloha's settlement with regulators and customers, said Gomberg's report raises a red flag.

"It, basically, questions the feasibility of the entire treatment project," Reilly said.

About 2,000 of Aloha's 12,000 customers east of U.S. 19 signed petitions in 2002 asking to be removed from the company's service area. They cited problems with foul-smelling and dark drinking water that have persisted for more than a decade.

Deletion proceedings were abandoned after state regulators, company officials and customer representatives reached the agreement in April 2006 to resolve the water quality issues.

That deal requires Aloha to install an ion exchange system at its five treatment plants. Company officials estimated the fix will cost customers $6 a month per household, or an estimated $6.1 million in proposed utility rate increases during the next several years.

Implementing the settlement, however, has been plagued by setbacks.

In May, Fasano called for a special session of Pasco County's legislative delegation to consider a local bill to remove the utility's franchise and turn over its area to the county.

If the nine-member delegation approves the Aloha bill, it would have to be passed by the state House and Senate next year, then signed by Gov. Charlie Crist.

Todd Brown, a PSC spokesman, said the commission had not decided whether to take up the deletion issue but likely would discuss it.

"Certainly, the PSC Board has the authority under the terms of the settlement to begin these proceedings," Brown said. "But it's too early to say how this might be resolved."

Joe Lanza, an Aloha customer in the Wyndtree subdivision in New Port Richey, supports the deletion and thinks Pasco would do a better job running the utility.

"This should have been resolved a long time ago," he said. "It's time for a change."

Reporter Christian M. Wade can be reached at (727) 815-1082 or cwade@tampatrib.com.

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