County fighting water rate hike

Pasco County has petitioned the Florida Public Service Commission to join the official case against Aqua Utilities' proposed rate hike.

The PSC approved a rate hike in May for the privately owned water company over the objections of local lawmakers, the state's Office of Public Counsel and more than 100 Pasco County customers who traveled to Tallahassee for the hearing. In July, the Office of Public Counsel filed a formal protest to the rate case.

Aqua Utilities serves about 3,200 customers in three Pasco neighborhoods and already has the highest water and sewer rates in the county — more than double those charged by Pasco County. The company charges customers a $50 facility fee every month, which generates a constant stream of revenue in communities with large numbers of seasonal residents.

According to the new rate schedule, the water and sewer bill for a typical customer in Jasmine Lakes would increase from $95 a month to $120. Customers in Zephyr Shores and Palm Terrace would see their monthly bills rise about 7 percent, from $123 to $132 for 5,000 gallons of water.

It would be the company's second rate increase in two years.

Aqua Utilities officials have maintained the company needs the rate hike to help pay for $12 million in capital improvements to its facilities. They also say customers are using less water, which means less revenue is flowing to the company.

Assistant County Attorney Joe Richards, who filed the petition this week, said the county's goal as an intervener isn't to force a sale of the three water systems, but rather to help the customers negotiate a lower rate.

In the petition, Richards contends Aqua Utilities overstated its income and revenue requirements, and its rates are unaffordable. Moreover, he argued, the company's level of service doesn't warrant a rate increase.

The PSC found Aqua's services to be "marginal at best." Richards echoed the Office of Public Counsel's position that "Aqua's quality of service should be found to be unsatisfactory."

Because Pasco is an official intervener, county officials can give formal testimony in September, and the PSC has scheduled a series of hearings around the state — including one on Oct. 11 in New Port Richey — where customers will get a chance to address the commission and offer evidence.

But this hearing will differ from the May meeting in Tallahassee that drew two busloads of Aqua Utilities customers from Pasco. Anyone can testify in the upcoming hearings, but they will be under oath and could be cross-examined after their testimony.

Pasco Commissioner Jack Mariano said Aqua officials also will be under oath. He has accused the utility of misleading PSC commissioners during the May hearing.