Proposed water rate increase raises concerns

A public hearing held on August 20 to provide information on revised water rate schedules proposed by the Passamaquoddy Water District (PWD) attracted 30 members of the public. The PWD supplies water to Eastport, Perry and Pleasant Point residents.

The district is looking for an additional $140,556 in annual revenues to meet increasing costs. A major problem is that operating expenses have been increasing to meet federal Safe Drinking Water Act guidelines during the same period that the district has lost several major water users. Gates Formed Fiber Products, the PWD's largest water user, closed its Eastport facility six years ago, which amounted to a loss of 10% of income to the water district. Reduced aquaculture operations have also contributed to loss of income.

Nancy Seeley, PWD manager, said, "Everything is falling on the residential customer."

At the hearing, some customers complained about water quality. Customer Bill Buehner, in describing the water, said, "It smells bad and tastes bad." He asked, "With this huge increase, will the water improve? It is not right to increase the rates. Something needs to be done. People have to go out and buy filters."

Another customer complained of the smell of bleach in the water. Seeley explained that Boyden Lake, the water source, is a shallow man-made lake and requires a major amount of treatment.

David Westphal, an inn owner, expressed concern for people on a fixed income. "You will be forcing people to leave the town and the state. It is a real dilemma. You may be forcing the people who are paying the bills to leave." Westphal suggested that the board members meet with state and congressional representatives in an effort to solve the problem of meeting increased federal demands.

William Boone stated he has three residential properties in Eastport. "I don't like the increase anymore than anyone. It is inevitable that prices will go up." He stated the PWD board has worked hard in serving the community.

Hal Goodman asked if there would be a need for future rate increases and was told there probably would be more. Eastport resident Tom Stelma said, "The Eastport councillors should go out and drum up more businesses. Now the poor people are going to have to pay." According to Stelma, on one corner, "the street was dug up and filled 15 times." Seeley replied it was the contractor's error, and the expense for such work was borne by the contractor.

One member of the audience, Bernard Grazulwich, questioned why Pleasant Point had three members serving on the PWD board of trustees and Eastport had only one, Richard Clark. Perry also has one representative, Randy Newcomb. Other trustee members are Sabattis Lewey, Maxwell "Chick" Barnes and Joseph Barnes. It was explained that Philadelphia Water Works, a private company that previously operated the water company, did not want to continue to serve the Eastport area, and in 1984 Eastport voters rejected a plan to purchase the company. Pleasant Point formed a water district and secured grants for the purchase of the company, and at that time a charter for the operation of the district was set up and specified the area member representation of the board of trustees.

PWD Board of Trustees Chairman Randy Newcomb explained expenses are getting higher for everything the water district does. He noted that the district is presently involved in replacing mains from Redoubt Hill at Route 190 down to Water Street and Adams Street to the other side of Shackford Street. The $883,000 project is being financed by a 75%, interest-free grant. The remaining 25% will require payment by the district. Work last year was financed by a State Revolving Fund loan, and the district still has to pay $18,000 a year over the 30 years for the loan. Photographs of the condition of the 100-year-old water mains were passed out to water users attending the public hearing. The PWD statements of income for the year ending December 31, 2006, showed a net loss of $49,126. Revenues are required to pay the current expenses, to provide interest on the indebtedness and to provide a contingency fund.

Malcolm Horton, PWD accountant, explained that a public hearing is required to increase or reduce rates. If within 30 days of a public hearing 15% of the customers of the district file with the treasurer of the district and the Public Utilities Commission (PUC) petitions demanding a review by the PUC, the rate increase may be suspended, investigated, reviewed and changed. Upon request, the district will provide customers with the appropriate petition forms. Based on metered customers, 111 valid signatures are required to challenge the proposed rate increase.

If the proposed rate increase is granted, the rate for a residential customer using the minimum amount of water, 1,200 cubic feet, will go from $79.50 a quarter to $96 a quarter. Seasonal customers will pay $318 in one lump sum, which equals four minimum payments.

Eastport City Manager George Finch stated, "While on paper the rate increase could be considered acceptable in terms of numbers, I still believe there are significant other issues, not in the numbers, that need to be addressed and expect they will be when a petition is filed with the PUC."