PINE BLUFF -- Liberty Utilities is seeking a nearly 28 percent rate increase for its Pine Bluff water customers, drawing ire from the Pine Bluff City Council and others in the city who say that amount is too high.
Liberty provides drinking water to 17,000 homes and businesses in Pine Bluff, which has a population of 49,083.
If the proposed increase passes, the average monthly bill of just more than $26 would rise to more than $33 per month, Liberty Utilities consultant Lester Melton told the Arkansas Public Service Commission.
The increase must be approved by the commission before it can go into effect.
The commission is expected to vote on the measure in the spring, and two public hearings on the topic are set for next month. One meeting is scheduled for 9:30 a.m. Feb. 24 at the commission's Little Rock headquarters; the other will be held at 6 p.m. Feb. 26 at the Donald W. Reynolds Community Center in Pine Bluff.
In recent testimony before the Public Service Commission, Melton said "an increase in rates is necessary in order to provide sufficient capital dollars to maintain and improve quality service to our customers, to provide adequate operating and maintenance coverage, and to maintain a sound financial position."
Lester testified that Liberty has already invested nearly $1 million in new pumping equipment and plant improvements, in addition to $2 million in improvements at a separate transmission and distribution plant.
The Pine Bluff City Council passed a nonbinding resolution denouncing the rate increase Jan. 5. Alderman Steven Mays, who sponsored the measure, said he has received numerous calls from constituents who are angry about the proposed increase.
In his resolution, Mays wrote that the increase would "bring hardships on the most vulnerable members of the community who have fixed incomes and little margin for increased living costs."
Liberty customer Sandra Conrad said her budget is already accounted for, "down to the dollar," and any increase would likely bring hardship on her household.
"I have three kids, and we use a fair amount of water. So I suppose my increase would be above average," Conrad said. "I wish I could pass this increase on, or tell my boss I need a raise because my bills are going up. But I can't. Poor folks just don't get a break."
In addition, Pine Bluff wastewater customers are facing a potential rate increase.
Pine Bluff Wastewater Utility officials are proposing a 23 percent rise in rates to fund improvements to the city's sewage treatment infrastructure.
Based on an average monthly bill of $16.21, a resident would see an increase of $1.62 per month in 2015 and a $3.73 monthly increase by 2017, Wastewater Utility General Manager Ken Johnson said, adding that the initial increase would not be reflected on bills until at least February.
Johnson said the increase would be phased in over three years to help customers adjust to the cost. A resolution will be submitted to the Pine Bluff City Council's Public Works Committee before the end of the year, and the City Council must approve the measure before it can go into effect.
Some of Pine Bluff's wastewater infrastructure is more than 120 years old, and while there have been no significant problems reported, Johnson said upgrades are needed to ensure none arise.
If passed, money from the increase would be used to fund construction of a new wastewater pump station on the city's south side and improvements to existing pipes. Johnson said previously that the utility has used pipe liners as temporary fixes for older pipes that had a higher risk of rupturing.
But "it's time for us to look at the long-term picture here, and our goal is to really update our system for the future," he said previously. "The increase is a bargain for the buck."
State Desk on 01/12/2015