Residents in Buckfield could ultimately see a 145 percent increase on their quarterly water bill, but for now they are facing an immediate 75 percent increase, as well as retroactive charges.
The Maine Public Utilities Commission approved an emergency increase of 75 percent for the Buckfield Village Corp., which controls utilities in Buckfield.
The BVC also has a case pending before the PUC to permanently raise rates 145 percent. This is to help the BVC repay $525,000, borrowed to move water lines to make room for repairs along Routes 117 and 140.
The quarterly rates for water are based on the number of cold-water faucets available to a household. A household’s average quarterly rate with one bathroom has risen from $80 per quarter to $140. A 145 percent increase would raise an $80 quarterly bill to nearly $200.
In addition to the 75 percent-rate increase for the upcoming quarter, each customer is responsible for the 75 percent increase retroactively to cover May and June.
This has angered some local customers, such as Robert Lipham, who owns nine rental units.
“I cannot afford a 75 percent increase and therefore have to pass it along to my tenants,” Lipham said. “Even though I am being charged retroactively for May and June, it is illegal for me to charge my tenants retroactively. If the BVC gets what it wants (a 145 percent increase), then I will have to raise rent for each of my tenants $30.”
Lipham believes the financial issues faced by the BVC stem from the Safe Drinking Water Act of 1996. The act mandated that cities with open water sources filter their water.
While some major cities were granted a waiver, the BVC was denied a waiver because of failure to submit biweekly reports. Therefore, the BVC had to borrow $165,000 from the U.S. Department of Agriculture in order to pay for the filtration process.
“I blame the federal government for coming in here and shoving this down our throats,” Lipham said. “Our drinking water was excellent in comparison to other major cities.”
This claim is substantiated by Steve Levy, executive director of the Maine Rural Water Association, who helped with the BVC’s case before the PUC to raise rates.
“In general, the Safe Drinking Water Act hits smaller systems harder because they have less of a customer base to cover the debt of the filtration process.” Levy claimed that, at the time of the 75 percent increase, “the BVC was within days of default on their loans to the USDA.”
The BVC is allowing customers to pay their quarterly bill in three installments. Previously, customers were required to pay their bills within 30 days.
A possible solution is the dissolution of the BVC and turning over the control of utilities to the town of Buckfield. A referendum is in place, to be voted on in the November elections, for a transfer to occur.
According to Town Manager Glen Holmes, “The town’s intent is to gain control of utilities because it is the right thing to do and it could possibly save money for everyone. We cover 30 percent of the hydrant rental bill already.”
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