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Citizens speak out about proposed OAW water rate hike
(by Linda Dillman, staff writer - January 26, 2010)
Residents angry over poor water and budget-busting water bills flooded a public hearing with stories of debris-laden taps, appliances breaking down prematurely, and monthly bills pushing beyond $120.
Facing a standing-room-only crowd of more than 220 citizens at Eastland Career Center on Jan. 25, attorney examiners from the Public Utilities Commission (PUCO) listened to nearly four hours of public testimony critical of the water services provided by Ohio American Water (OAW).
OAW, a privately-owned utility, initially requested a 60 percent increase phased in over four years through stepped annual rate increases beginning this year. On Jan. 25, PUCO representatives announced OAW withdrew its request for the 2011-13 step increases.
OAW is now asking for a 26.44 percent increase in Franklin County this year-in addition to similar increases in other Ohio service areas-along with an 18.28 percent increase in wastewater service.
PUCO staff members are recommending 5.85 to 7.27 percent increases in Franklin County and 3.85 to 5.27 percent increases in wastewater rates. The PUCO also alleges OAW overstated operating and maintenance expenses by $4.4 million, that the company should change its business model to better control costs and to better reflect economic conditions in its service market, and that OAW costs have reached a critical point where major processes should be altered and institutional changes implemented.
Despite lower rates recommended by the PUCO staff, water customers, especially those in the Blacklick Estates subdivision, are calling for a rate decrease.
"In these difficult economic times, residents are in the difficult situation of choosing what bill to pay - medical bills, utility bills, or food on the table," said Madison Township Administrator Larry Flowers.
Flowers said recent water testing Madison Township requested from OAW and the Ohio EPA, shows the water is safe to drink.
"Yet," said Flowers, "a strong perception among all of us is that cloudy, discolored, smelly water with stuff floating in it raises questions. Our residents have collectively spent hundreds of thousands of dollars to add filters, add conditioners, use bottled water, and replace plumbing fixtures and appliances. Even had their water lines dug up to check for the origin of sediment."
Citizen comments
•Dennis Ponder said he paid $127 for one month of service and, despite conservative measures, spends more money on his water service than on gasoline for his vehicle.
"I'm paying more for my water than they do in the desert," said Ponder.
•Bonnie Goshen said she is forced to purchase a laundry booster due to water quality and, despite using a water softener, the water leaves an orange film around her tub. She said her family has difficulty paying their water bill right now and any increase would create more hardships.
•Echoing sentiments expressed by many of the 40-plus people testifying before the commission, Gabrielle Thomas said she recently paid a monthly water bill of $142 for four people. In comparison, Thomas reported the water bill for a Columbus rental property she owns was $169 for a three month period.
Thomas said she takes showers at the Groveport Recreation Center to save money. In addition, she also faults high water bills for lower property values. She paid over $88,000 for her home, but said a house next door recently sold for $49,000 and one across the street went for $45,000.
"Renters won't even stay," continued Thomas, "so they abandon the property. People are giving up and walking away and one of the reasons they cite is the water. We're losing our property value and the water has a whole lot to do with it."
•Residents are also experiencing water thefts. Robin Caplinger said water was stolen from her via an outside faucet by people whose water was turned off. When she reported the incident to the police, Caplinger said she was told law enforcement have cited others for stealing water.
•Tina Reyes said, "To me, the health concern is a great concern. Kids can't brush their teeth or flush their toilets. I sent my baby off to another country to help provide clean drinking water. We should have it here. We don't want anything handed to us. We just want safe drinking water."
Water samples questioned
Three citizens provided water samples they said were taken from their home taps. However, Bricker and Eckler attorney Sally Bloomfield, who is counsel to OAW, objected to admitting the samples into evidence. She said they did not know for sure if the samples were taken from faucets served by OAW and they were not obtained under specific collection procedures.
PUCO examiner Jay Agranoff took Bloomfield's objections under advisement.
OAW response
OAW President David Little stated the company cares about their customers and acknowledged water quality has been a concern in the Blacklick Estates area for 40 years. He said the PUCO previously surveyed customers regarding softened water, but reported customers expressed a preference to address the issue themselves.
"We'll probably revisit this issue with our customers," remarked Little, who emphasized the current rate case is for expenses incurred by OAW.
Next steps
The PUCO will examine the issues and evidence presented, including testimony gathered at the local level, before issuing a decision in public session to accept, reject, or modify the rate hike application.
Once the PUCO issues a decision, all interested parties have 30 days to seek a review.
For information, visit the PUCO WEb site at www.PUCO.ohio.gov. To view documents related to the OAW case, click on the link to DIS and enter case number 09-391-WS-AIR in the case search box.
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