MOST WEST VIRGINIANS WATER RATES COULD TOP 40% INCREASE

(06/24/2010)

West Virginia American Water, the state's biggest provider, is seeking to raise rates by 15 percent. If the recent request is approved, their rates will have increased 40% in three and one-half years. West Virginia has joined the nation in privatizing water. The company says an additional $18.4 million in revenue a year is needed to recoup more than $50 million the company has spent to improve water lines and treatment plants since 2008. Kanawha County Commission President Kent Carper has vowed to fight the rate hike, saying "People can't afford this." Byron Harris, consumer advocate at the Public Service Commission, said the water company requested an 11.5 percent profit margin in this week's filing. "That's very steep," Harris said. The water company said rates are higher in West Virginia than in other parts of the country because of the state's rugged terrain and scattered population. According to an annual report by the PSC's Consumer Advocate Division, West Virginia American Water customers in West Virginia paid more last year than users in surrounding states. West Virginia American Water has more than 171,000 customers in 19 counties. The company has also been requesting a 3.5 percent surcharge to replace pipe, without going through regulatory evaluation.

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