JAY – The Public Utilities Commission has suspended a rate increase of almost 11 percent for North Jay Water District customers for nine months after a petition containing 65 signatures from customers was submitted Monday.
The commissioner ordered the suspension Monday. The suspension starts March 31, which was when the hike was expected to go into effect, so that the PUC can investigate petitioners’ concerns.
Petitioners requested suspending the rate and asked the PUC to investigate:
• Whether the amount of the proposed 10.75 percent increase in the water district’s revenues are reasonable.
• Whether the district is taking the steps necessary to operate efficiently and to trim its operation and maintenance cost.
• Whether the proposed increase in revenues is related to known and measurable changes to the water district’s expenses and revenues.
• Whether the water district is operating as efficiently as possible and is using sound management practices.
The district held a public hearing in February on the proposed increase. Customers had until March 15 to file a petition to ask the PUC to investigate.
Residential rates would have been hiked from $60 to $66.10 for the first 1,000 cubic feet of water or about 750 gallons.
It would have been the second increase since 2004 when residential rates increased 33.4 percent from $46. Prior to that, there hadn’t been a rate increase since 1995.
The proposed rate hike was needed to raise $13,677 in revenues from all services, including residential and commercial, to help offset rising operating costs, which included several waterline breaks, labor costs and repairs.
According to PUC acting administrator Dennis Keschl’s order posted on the www.state.me.us/mpuc Web site, the commission ordered the suspension for nine months unless otherwise ordered, because sufficient time did not exist prior to the date of the proposed hike to allow the commission to fully investigate the matter. The case is identified on the virtual docket as 200611.
The district has 10 days from the receipt of the order to notify the commission whether it intends to contest the petitions, including whether the number of signatures is sufficient and whether the people are customers. If the district contests the petitions and the commission finds the petitions to be invalid, the suspension would be lifted and the increase would be allowed to go into effect.
The signatures on the petitions exceeded 15 percent of the district’s customers, the minimum required.
District Superintendent Richard Jackson said Wednesday that the district received the petition. He plans to meet with district representatives to discuss the matter.
There will be a process set up for discovery and meetings, PUC advocate Bill Black said Wednesday.
Petitioner Jennifer Easter, who submitted the petitions, was not immediately available for comment Wednesday.
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