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Colonial Seeks Increase In Water Rates

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By CHRISTIAN M. WADE

The Tampa Tribune

Published: August 30, 2008

HOLIDAY - Colonial Manor Utilities Inc. wants to increase rates for more than 1,800 drinking water customers in west Pasco County, saying the added revenue is needed to cover the cost of installing a new filtration system on its nitrate-contaminated wells.

On Tuesday, the Florida Public Service Commission is expected to vote on a proposed rate increase for customers of Colonial Manor - owned by the New Port Richey-based U.S. Water Services Corp. - which if approved will more than double drinking water bills.

Based on figures submitted to the PSC from Colonial, a customer who uses an average of 5,000 gallons a month would see a bill increase from $18.62 to $40.58 a month.

But the PSC staff has recommended splitting the rate increase into two phases, one that boosts the average bill from $18.62 to $19.13 the first year and to $42.15 the next.

State officials have been closely monitoring Colonial Manor, which serves about 700 households in the New Port Richey and Holiday areas. The oversight began in August 2005 when nitrate contamination forced the private utility to close two of its five wells.

Last year, Colonial Manor signed a consent decree with the Florida Department of Environmental Protection requiring the utility to come up with a plan to install a new filtration system within 90 days and continue testing for bacteria monthly.

DEP officials also fined Colonial $8,500 for drinking water violations.

Gary Deremer, president of U.S. Water, said his company plans to use a process known as ion exchange to resolve the nitrate pollution in the utility's five wells, two of which remain out of service. He said the price tag for the system is more than $1.2 million.

Many customers, however, don't think the troubled utility deserves to charge more.

Customers, who have complained in public hearings about poor water quality provided by the utility, are being asked to pick up the tab for the water quality improvements.

After the two wells were closed in August 2005, company officials warned affected customers not to give tap water to infants younger than 6 months or to seniors.

Nitrates get into the groundwater from a variety of sources, including farming, gardening, fertilizers, industrial and sewage waste disposal, and animal manure.

The discovery of the contaminant in Colonial's wells prompted an investigation by the state DEP, which issued an order requiring the utility to resolve the contamination.

The U.S. Environmental Protection Agency set the standard for acceptable nitrate levels in public water supplies at 10 milligrams per liter. The two wells in Colonial's service area tested at 10.8 milligrams and 10.4 milligrams before they were taken out of service.

While the PSC staff faulted Colonial for not resolving the nitrate contamination, they did credit the utility for making strides to improve customer service and fix the problems.

"Staff believes the utility should have been more proactive to address the excessive nitrate levels," the commission report stated. "Although the utility's quality of water is currently marginal because of the nitrate levels, Colonial appears to be working to improve the quality by proposing to construct an ion exchange filter system."

Company officials said they think the nitrate has been seeping into the water system from aging septic tanks in the neighborhood. They asked the county government to replace the old tanks with a centralized sewer system, but their request was denied.

The PSC board meets in Tallahassee at 10 a.m. Tuesday.

Colonial customers who cannot attend the meeting can watch it on the PSC's Web site at www.psc.state.fl.us/.

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

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