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PSC Staff Recommends Large Aloha Water Rate Hike

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By DAVID SOMMER, The Tampa Tribune

Published: February 2, 2008

NEW PORT RICHEY - Aloha Utilities should be allowed to almost double residential water bills over the next two years, Florida Public Service Commission staff agreed late Friday.

In a 21-page staff recommendation posted at the PSC Web site Friday evening, staffers recommended the full commission approve phasing in slightly lower rate increases than the private utility had requested. Aloha has asked permission to more than double the rates it charges homeowners in service areas that include Aloha Gardens in Holiday, the Seven Springs area south of New Port Richey, and in the Trinity communities along Pasco County's southern border between Holiday and Odessa.

According to Friday's PSC report, Aloha has been exceeding its pumping permits and needs to begin purchasing water from Pasco County to catch up with growth in its service areas.

Also, Aloha has agreed to install a new "anion exchange" treatment system to "address the current problems that stem from the presence of hydrogen sulfide in the water," the PSC staff report notes.

A summary of typical residential bills contained in the new report includes PSC staff-recommended increases somewhat lower than the private utility has requested and slightly lower than a previous staff recommendation.

The PSC is scheduled to vote on the matter at a hearing scheduled in Tallahassee for Feb. 12.

According to the summary, a residential customer who uses 5,000 gallons of water a month currently is billed $14.35. Aloha wants to raise that to $31 a month. The PSC staff is recommending $26.20 a month for 5,000 gallons in 2008 and $27.46 in 2009.

Previously, the staff had recommended raising the cost for 5,000 gallons of water a month to $29.44.

PSC officials were not available for comment after the rate recommendations were posted online late Friday. Steve Watford, Aloha's president, could not be reached.

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