Fairmont, West Virginia Increases Water Rates 49% (TimesWestVirginian)

Feb.11, 2009 in Water Rates

(Feb. 11, 2009, The Times West Virginian)

FAIRMONT — City council members voted unanimously to pass a 49 percent water-rate increase during Tuesday’s meeting.

Although the council members voted to increase the rate, Fairmont water customers can appeal the decision to the state Public Service Commission.

And Mannington Mayor Frank White, one of the three people who attended the public hearing to discuss the hike, said he plans to appeal the decision to increase the rate.

“I appreciate the situation the city (Fairmont) is in, but I think the PSC needs to be involved,” White said.

White added he will be making his appeal to the state agency that oversees utilities in the very near future. A resale customer, such as a municipality or public service district, can appeal the rate increase to the PSC, according to Sarah Robertson, a spokesperson for the state agency.

An appeal will also be heard by the PSC if 25 percent of those who purchase Fairmont’s water sign a petition opposing the increase.

An appeal to the PSC must be made within 30 days of the passage of the rate increase. If there is no appeal, the increase will go into effect 45 days after the passage of the ordinance.

Janet Page, the owner of a Fairmont laundry facility, said she understood why the water rate must be increased, but added that she also believed that those using Fairmont water should not be punished for the mistakes of others.

Both Jim Snider, Fairmont city manager, and Matt Delligatti, mayor, said they did not enjoy raising the water rates for Fairmont’s customers. However, both said they believed council had few options other than raising the rates.

“This is obviously a difficult choice,” Delligatti said of the rate increase. “But it’s the fiscally responsible thing to do.”

Although the council agreed to increase the rates, Snider said the issue may be revisited in the future. According to Snider, Fairmont officials are seeking federal funds to pay for the corrective action. He said if the federal money were granted to the city, then the water rate would be decreased.

He said the city is currently in mediation with Chapman Technical Group, the firm that designed the plant. Snider said if Chapman agrees to pay the city money because of the faulty design of the plant, then the water rate could drop.

He said the average customer will see an increase of $12.82 per month. This figure is based on a 4,500-gallon benchmark, which was created by the American Water Works Association.

The minimum monthly bill under the proposed rate increase for service on a 5/8-inch line would be $21.65 per month. This is an increase of $7.11, according to the ordinance. Snider stressed that the 49 percent increase is on the water bill alone and not the entire city utility bill.

The rate increase is to pay for a $9.6 million corrective action at Fairmont’s 5-year-old water plant. According to the city manager, some of the funds generated by the increase will be used to bring the city’s water fund out of debt. Snider added that the city’s water fund had operated at a deficit for numerous years. Money was taken from other city funds and was placed in the water fund in order to pay for emergency action when the water plant began malfunctioning during the winter of 2007.

E-mail Paul Fallon at pfallon@timeswv.com.

(Original Article Here)