Aqua Utilities gets rate increase

The Florida Public Service Commission on Tuesday declared Aqua Utilities level of service is marginal, but commissioners still approved a rate increase for one of the state's most expensive water and sewer service.

The decision goes against the recommendation from PSC staff to raise the privately owned utility's level of service to "satisfactory" and allow a $2.8 million rate hike. The exact amount of the increase will be released on March 5.

Commissioner Julie Brown said the testimony she heard from customers in Pasco County and across the state didn't justify the recommendation, especially given the company's environmental and customer service record.

"How can we have our own staff testify that a system is significantly out of compliance and then come back and say the quality of service is satisfactory?" she questioned.

The privately owned utility serves about 3,200 customers in Pasco County and already has the highest water and sewer rates in the county — more than double those charged by the county. Dozens of Pasco customers attended the PSC meeting and waved colorful signs opposing the rate hike. They were not permitted to address the commissioners.

Chairman Ronald Brise addressed them directly. "We appreciate the fact that you have remained intimately engaged," he said.

Brown said Aqua's rate case was like "a perfect storm" for the customers, many of whom cut their water usage after the last rate hike. "I feel like today, we've accomplished everything we can do for the customers," she said.

The average Aqua customer pays about $150 a month for water and sewer service. Still, commissioners said they couldn't reject the rate increase simply because it wasn't affordable.

"How do you define affordable?" Brise asked. "The reality is, what's affordable in one area of the state may not be affordable in other areas."

Commissioner Lisa Edgar stated the obvious: that Aqua's rates are high. "They are higher than I am comfortable with, and higher than I would like to pay," she said.

Since Aqua customers pay those rates, they have the right to expect a higher level of customer service, she argued.

Brown and Brise attended a customer service hearing in New Port Richey in October. Brise said he observed a "certain disconnect" between Aqua's executives and its customer service.

Dozens of customers testified that despite the high costs, they still buy bottled water because they can't stand the taste or smell of Aqua's water.

"I do believe the utility has made an effort to move the ball forward, but I don't think it's gotten to where it needs to be," Brise said.

Brown said she wasn't satisfied that Aqua did an adequate job of notifying its customers when it issues precautionary boil water notices. "Customers are ultimately the ones who are subjected to health risks when the company fails to adhere to reporting requirements," she said.

The commissioners also unanimously rejected Aqua's requested pay raises for its employees.

"We heard a lot of testimony at the customer hearings about cost of living raises, and how there hasn't been a cost of living increase in Social Security," Brown said. "Given the state of the economy, I find it completely inappropriate to approve any cost of living increases, especially for Aqua employees who live outside the state of Florida."

Commissioner Art Graham agreed, noting that Aqua employees received pay raises as a part of the utility's 2008 rate case. "Not a whole lot has changed in the last three years since their last rate case," he said.