Nov 10, 2009 - Worcester Telegram & Gazette
OXFORD — The Department of Public Utilities has agreed to reopen rate hearings for Aquarion Water Co.’s customers in Oxford and Millbury.
Joseph M. Zeneski, town manager for Oxford, said his town filed a complaint with the DPU in August after learning that the department had granted Aquarion a 33 percent rate increase, effective April 1, for Oxford and Millbury water customers.
“The DPU’s decision was made based on flawed information,” Mr. Zeneski said.
Harry C. Hibbard Jr., vice president of Massachusetts operations for Aquarion, said approximately 700 residential water meters in Oxford and Millbury had been incorrectly formatted to read cubic feet of water, while Aquarion bills in gallons, resulting in lost revenue for the water company.
In information provided by Aquarion to the DPU, the company said the “discrepancy amounts to a revenue shortfall of $5,265” and that “no further action by the DPU is required.”
Mr. Hibbard said that in 2007, the test year used in the rate case, “we understated income of $5,265 out of $12 million. It was an unfortunate error we brought to everyone’s attention. The only loser was Aquarion.”
Mr. Zeneski said that the 700 affected customers could face a huge increase in their water bills as a result of the 33 percent DPU-approved rate increase and a 36 percent increase from corrected bills in gallons.
Mr. Hibbard said the average residential customer who uses 64,000 gallons of water per year would pay $325 for water under the old rate. The new rate would increase that annual charge to $422.
A customer whose meter was mistakenly reading cubic feet would have only paid $280 for 64,000 gallons, and will pay $422 in the corrected bill, a 50 percent increase.
Mr. Hibbard said the rates are far from simple because they are “inclining block rates with different tiers, based on usage, to encourage water conservation.”
Mr. Hibbard said the rate approved by the DPU will apply to customers in Oxford, Millbury, Hingham, Hull and North Cohasset. A surcharge to the last three towns mentioned payments for a treatment plant there.
Millbury Town Manager Robert J. Spain said he had not reviewed the DPU decision to reopen the case, so could not comment on the matter.
Francis B. King, one of five Millbury selectmen, is general foreman for Aquarion in Millbury and Oxford. Mr. Spain said Mr. King recuses himself on matters involving Aquarion rates.
In a 12-page decision issued Oct. 28, DPU commissioners Tim Woolf and Jolette A. Westbrook ordered that the department reopen the rate case.
Rate increase appealed
OXFORD — The Department of Public Utilities has agreed to reopen rate hearings for Aquarion Water Co.’s customers in Oxford and Millbury.
Joseph M. Zeneski, town manager for Oxford, said his town filed a complaint with the DPU in August after learning that the department had granted Aquarion a 33 percent rate increase, effective April 1, for Oxford and Millbury water customers.
“The DPU’s decision was made based on flawed information,” Mr. Zeneski said.
Harry C. Hibbard Jr., vice president of Massachusetts operations for Aquarion, said approximately 700 residential water meters in Oxford and Millbury had been incorrectly formatted to read cubic feet of water, while Aquarion bills in gallons, resulting in lost revenue for the water company.
In information provided by Aquarion to the DPU, the company said the “discrepancy amounts to a revenue shortfall of $5,265” and that “no further action by the DPU is required.”
Mr. Hibbard said that in 2007, the test year used in the rate case, “we understated income of $5,265 out of $12 million. It was an unfortunate error we brought to everyone’s attention. The only loser was Aquarion.”
Mr. Zeneski said that the 700 affected customers could face a huge increase in their water bills as a result of the 33 percent DPU-approved rate increase and a 36 percent increase from corrected bills in gallons.
Mr. Hibbard said the average residential customer who uses 64,000 gallons of water per year would pay $325 for water under the old rate. The new rate would increase that annual charge to $422.
A customer whose meter was mistakenly reading cubic feet would have only paid $280 for 64,000 gallons, and will pay $422 in the corrected bill, a 50 percent increase.
Mr. Hibbard said the rates are far from simple because they are “inclining block rates with different tiers, based on usage, to encourage water conservation.”
Mr. Hibbard said the rate approved by the DPU will apply to customers in Oxford, Millbury, Hingham, Hull and North Cohasset. A surcharge to the last three towns mentioned payments for a treatment plant there.
Millbury Town Manager Robert J. Spain said he had not reviewed the DPU decision to reopen the case, so could not comment on the matter.
Francis B. King, one of five Millbury selectmen, is general foreman for Aquarion in Millbury and Oxford. Mr. Spain said Mr. King recuses himself on matters involving Aquarion rates.
In a 12-page decision issued Oct. 28, DPU commissioners Tim Woolf and Jolette A. Westbrook ordered that the department reopen the rate case.
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