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CUMBERLAND — Residents of Pinto and Highland Estates might consider their recent notification from Maryland Water Service akin to getting a lump of coal in their Christmas stockings. The water company has requested from the Maryland Public Service Commission a 49 percent rate increase for Pinto customers and a 38 percent rate increase for Highland Estates customers.
If the requests are granted, they would result in an estimated $485,398 of increased revenues for Maryland Water Service, according to documents filed with the PSC. The rate increase, though, certainly won’t be approved in time for Christmas.
“We basically have 210 days to get our decision out,” said Brian Moorehouse, special counsel to the chairman of the PSC. Typically, the company must prove its case to a hearings examiner and a public hearing will take place in the county in which the affected customers are located, he said.
“I think it’s outrageous,” said Delegate Kevin Kelly. “I am very distressed by this request for a dramatic increase in rates. People cannot afford these outrageous rate increases.”
Kelly said the company was granted a surcharge increase earlier this year, which the company originally applied for in 2009. The $4 surcharge, which will expire in 2016, was designed to help compensate the company for unaccounted water losses — probably from leaks and related infrastructure problems in the water pipeline between the company and its suppliers. Kelly wants the public hearing held at the Allegany County Center for Career and Technical Education off McMullen Highway.
Maryland Water Service operates two companies, one in each community. In Highland Estates, in the Naves Crossroad area, the company serves about 39 residential customers. In Pinto, southwest of Cumberland, the company serves 942 customers, according to documents filed with the PSC. The company gets its water from the city of Cumberland, part of the Cumberland water is funneled via the Cresaptown Civic Improvement Association.
The company said it needs the rate increase to continue providing quality water service.
“To be clear, MWS has not made its decision to seek rate relief lightly. Since 1997, MWS has continued to do more with less,” wrote MWS Regional Director Martin Lashua in a letter sent to affected customers. In the letter, Lashua said the company plans to simplify customers’ bills. The company has not received a rate increase for the distribution and usage portion of customers’ bills since 1997, he said. The distribution and usage portion of the bill is the largest portion of the bill, he said.
Since 1997, the company’s costs for water treatment chemicals has jumped 850 percent and electricity costs have grown by 100 percent, among other cost increases, Lashua said. Labor, insurance and regulatory costs have increased and the company has invested $2.4 million in capital improvements since 1997, he said. Over the 12 months that ended March 31, the company suffered a net operating loss of $273,770, according to documents filed with the PSC.
If the request is granted, a customer with a current $30 monthly water bill in Pinto would pay about $47. Maryland Water Service is a Utilities Inc. company.
Contact Matthew Bieniek at mbieniek@times-news.com.
Local News
Water rate hikes considered for Pinto, Highland Estates
Company request to PSC for increases of 49 percent, 38 percent of current bill
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