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Regulators Vote Today On Aloha Rate Request

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By CHRISTIAN M. WADE, The Tampa Tribune

Published: February 12, 2008

NEW PORT RICHEY - The Florida Public Service Commission is expected to vote today on a proposal that could more than double bills for a private utility's customers.

Aloha Utilities says it needs to raise rates to recoup the cost of buying bulk drinking water from Pasco County and cover increased operating expenses.

PSC staff have recommended the utility be allowed to raise rates in three stages during the next several years.

And they have added a stipulation that the increases not go into effect until Aloha proves it has tied into the county's water distribution system.

A staff report has suggested rate increases lower than what Aloha wants, but for some customers they will amount to an increase of more than 100 percent.

Households using 5,000 gallons per month would see bills go from $14.35 to $27.46.

The five-member PSC board will vote today on the first wave of increases, which staff estimates will generate nearly $4 million during the next two years.

In 2001, the PSC rejected Aloha's request for a 55 percent boost to buy water from the county. The utility appealed, but a judge later upheld the commission's order and mandated refunds for hundreds of customers.

The newest round of rate increases stems from a 2006 deal between Aloha and customer representatives aimed at ending chronic problems with black sulfur-smelling water. Under the agreement, Aloha must install an anion exchange system at its five treatment plants and connect to the county's distribution system for the purchase of bulk drinking water.

To do that, the utility has secured a $20 million bond and paid $4.9 million in impact fees.

Critics argue implementation of the deal is more than a year behind schedule and have asked the state regulatory body to move ahead with a process called deletion of territory, stripping Aloha of its franchise and turning over its service area to the county.

In November, Pasco County's legislative delegation approved a bill requesting $6 million in state funding for the county commission to purchase the water provider.

The PSC has not taken up that request.

State Sen. Mike Fasano, R-New Port Richey, an Aloha customer and critic, has asked the state regulatory body not to approve the proposed rate increases. Aloha serves about 25,000 customers in the Trinity and Seven Springs areas of New Port Richey.

Customers in Aloha Gardens are not included in the rate increases.

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

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