AUBURN — Water bills for most residential customers could rise 14 percent in January, according to a Water District proposal.

The Auburn Water District will host a public hearing on the proposed rate increase at 5 p.m. Wednesday, Nov. 17, at Auburn Hall. Superintendent John Storer said the proposed rate increase would boost the district’s annual revenues by $359,000.

It would increase the annual bill for an average user by $22, from $170 to $192. If the district’s board of directors approve, the new rates would begin Jan. 1, 2011.

“Because of the way the economy has gone, we’re seeing our water production rates go down,” Storer said. He said the district’s biggest customers are commercial and industrial users. Those top 10 percent of water district customers account for 27 percent of the water used and 28 percent of the revenue generated.

“We used to be over a billion gallons of water per year, but this year we’re down to about 900 million and some change,” Storer said. “So, we’re selling less water and we’re having to charge more for it.”

Storer said the district also has to pay more in debt service, including bonds for Auburn’s share of the Lake Auburn ultraviolet water treatment plant and new water meters

“We did refinance some bonds, and that saved the district about $700,000 over the life of the bonds,” he said. The district refinanced 20-year bonds issued in 1994, 1998 and 2005, reducing annual debt payments by about $90,000 this year, he said.

“So we have done everything in our power to keep our costs down,” he said.

Storer said the district last raised its water rates in January 2008, with a 9 percent increase. Overall, Auburn has the seventh-lowest minimum rate of 145 Maine water districts, according to the Maine office of the Public Advocate.

The proposed increase, from $28.35 to $32.29 for the first 8,976 gallons would give Auburn the 15th-lowest minimum charge. The Lewiston Water Department has the 28th-lowest minimum rate, $38.40 for the first 8,976 gallons.

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