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Water Rate Increase

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Bob Adams brings info on Water Rate Increase

I, Bob Adams, have lived at Holly Lake Ranch for 15 years. I have been involved in several rate increase protests since I have been here. We used to get them every 2 years the last one being in 1999. There is a history to all of this which I will not go into here. As everyone knows, we now have a new owner of the water company. I have been expecting a rate increase for several years but it has not happened for one reason or another. I am in the process of getting together a protest for this rate increase.
First of all you must understand one fundamental about the rate increase. Any utility in Texas is allowed by law to make a 12% rate of return based on their assets. That is because utilities are asset heavy. Their revenue is not taken into consideration. Our last increase allowed Silverleaf to make about a 35% profit on revenue but their profit was 12% on asset value. We must find out their asset value to see if their rate increase is according to the law.
I already have several people who have volunteered to help in this effort. Presently I am lacking a person who can look at the water companies books and determine if the value of their assets is valid. I have a meeting with our B board on April 21, 2009. They have never been involved before so I do not know how it will effect our protest. I have talked to the local personnel of the water company who is sensitive to their customers. The water companies Director of Central Operations has contacted me and we will have a meeting in the near future.
Besides the increase another concern I have is it looks to me that the structure of the increase seems to encourage higher water usage. Every year there is a notice on the bulletin boards about voluntary water consumption. I believe the water company should help us do that by structuring the rates to encourage conserving water. I also know that some of us have service problems. I personally have gotten up in the morning and could not get a drop of water out my faucet because of the number of sprinkler systems that were running. I live in section 4. I know there are other compaints which will be taken up with the water company when we meet.
I have also been in contact with the TCEQ(Texas Commission on Environmental Quality) in Austin. They will oversee the rate protest and have already assigned one of their consumer advocate lawyers to this rate increase.
Algonquin Water Company is a Canadian company. I do not know at this time if they are a public or private company. Their USA headquarters are in Litchfield, Arizona.
Keep your eyes and ears open. I will do my best to keep you informed but I will not be knocking on everyone's door everytime a new event or piece of news occurs. I will talk to anyone about this, take your suggestions or take your compaints to present to the water company. I know the initial meeting with the water company will involve a minmal number of people but depending on the outcome they may want to hold a public meeting. I will encourage that.
Bob Adams, Holly Lake Ranch

Last Updated on Friday, 24 April 2009 15:27  

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