Water district eyes 20% rate increase> Madawaska hike awaits PUC approval

MADAWASKA – Users of the Madawaska Water District are facing a request for a 20 percent overall increase in water rates early in 2001, if it is approved by the Maine Public Utilities Commission.

The water rate increase sought by the district is the second in three years. In March 1998, the district was approved for a 50 percent increase. The huge increase was brought on by a major overhaul of the water district’s filtration plant.

The increase request filed one week ago is to cover increased costs. The district operated at a loss of more than $73,000 in 1999 and is looking at another year in the red for 2000.

“Costs have been increasing fast for chemicals and electricity,” Donald Chasse, superintendent of the district said Wednesday. “Chemical costs rose to overcome problems in filtering water from the St. John River.

“It is the first increase in almost three years,” Chasse continued. “Our last increase was due to the cost of overhauling the filtration plant.”

Consumers will have an opportunity next month to attend a hearing on the proposed increase.

The water district administrator also said that decreased use of water is cutting into the district’s budget. Fraser Paper Inc. has decreased its use to the point that the company’s bill for 2000 will be about $25,000 less than last year, Chasse explained.

Chasse emphasized that the proposed increase has nothing to do with the water district’s search for a new water supply. The district is pursuing a plan to drill wells for the municipal water system. That program has been funded mostly with federal, state and local grants.

While the overall increase sought is for 20 percent, if approved, the rate increase for residential users would be 16 percent, 18.7 percent for commercial accounts, 24.8 percent for industrial users, 17 percent for public authorities, 21.7 percent for public fire protection and 20 percent for private fire protection.

For instance, the fire hydrant cost for the town of Madawaska could increase by $39,000 a year, if the request is approved by the PUC.

The present average cost for a household for three months is $63.00. That could increase $10 per three months, for an average household billing of around $73.00.

Chasse said users will have an opportunity to discuss the proposed increase at a public hearing scheduled for 6:30 p.m. Tuesday, Dec. 12, in the Madawaska High School library.

Users will also have 30 days after the public hearing to petition the PUC for closer review of the proposed increase. A petition to the PUC would need the signatures of about 175 users, 15 percent of the total number of users.

Chasse explained that the hearing will be an opportunity for the water district to explain the reasons why the increase is sought and needed. Users also will be able to question the increase.

The Madawaska Water District has 1,150 users, mostly in the urban area of town. The district uses about 500,000 gallons of water a day, on an annual basis.

The rate increase is expected to go into effect in January. Users will get their first increased billing about April 1.

The Madawaska Water District has an annual budget of $650,000. The increase, if approved, would increase its annual revenue by $123,000.