RANGELEY – The Water District has proposed an across-the-board rate hike that would go into effect Jan. 1.

Letters are being mailed today to inform customers of the proposed increase, and a public hearing on the matter is set for 7 p.m. Friday, Nov. 3, at the Rangeley Town Office.

Higher operating costs and additional debt related to water main replacements and a new backup well have contributed to the need for a proposed budget increase of $59,422 or 20.25 percent.

The district installed a new well to use while the primary well was being cleaned, trustee Superintendent Vernon Bean said.

The new well has been used for the past two weeks, he said, and the primary well was cleaned and is back online.

The bulk of the new revenue will come from residential customers, at $18,703, and public fire protection, at $27,104.

The public fire protection charges are determined by a Maine Public Utilities Commission’s formula, Bean said.

The base rate for residential water customers is $81.27 for 1,200 cubic feet per quarter now; if the increase is approved, the rate climbs $12.07 to $93.34.

Commercial rates are proposed to bring in $7,589 more, public authorities another $846, and private fire protection $616.

The last rate increase was in 2003, Bean said.

In 2002, 94 customers and the town petitioned the Maine Public Utilities Commission to look into a 21 percent increase and asked it to investigate several questions including whether the district was operating as efficiently as possible, using sound management practices and had maximized its customer base.

After several months of discussion, the parties agreed to the rate increase with stipulations, according to documents in the case.

The parties agreed that the revenue requirement would be $258,166, or 20 percent more than the district’s 2001 revenues. The district had also agreed to develop a comprehensive plan for the maintenance and upgrading of its water system, devise policies to ensure customer notification of the district’s meetings and investigate whether it could obtain certain services from the town.

Customers have the right to request additional information relating to rates from the water district and the right to an open and fair hearing before the district.

The Public Advocate Office may be available to assist customers in this matter at 287-2445 and the PUC number is 287-3831.

Customers also have the right to petition the commission requesting that it suspend and investigate the proposed rate increase.

Petitions must be filed with the treasurer of the district and the Maine PUC within 30 days of the Nov. 3 public hearing and must be signed by 15 percent or more of the district’s customers. Signatures on the petitions are invalid unless accompanied by the printed names and addresses of the signers. Only one adult signature per household or account will be counted.

Upon request, the water district will provide customers with petition forms that include space for the printed name and address of the signer.

A copy of the material supporting the proposed rate change will be available at the district’s office and town office after Oct. 2.