Members of the Missouri Public Service Commission (PSC) heard no support from area residents for Missouri American Water Company's plan to increase its base rates by nearly 20 percent.
About 40 customers came to the Monday evening public hearing on the sewer and water rate case. Most of those who testified were concerned over the sewer rate increase.
Last July, the company filed water and sewer rate cases with the PSC seeking a $51 million increase (19.63 percent) in base rates.
According to Missouri American, the company is asking for a flat usage rate of $69.20 a month for Jefferson City customers. That's up from the current rate of $65.22 a month.
Missouri American officials said Jefferson City area customers have not seen a sewer rate increase in four years while the company has made $1.8 million in improvements, including new sewer treatment plants at Briar Village and Evergreen Acres as well as putting in a new sewage treatment plant to replace the Lee Street lagoon.
"It should be cheaper and measured by what you use instead of just a flat rate," said Callaway County resident Walter Elston.
Shirley Adams and her husband have lived in their Taos home for 40 years. She said something needs to be done to help those on fixed incomes since there were no increases given in Social Security benefits this year.
"When we first got our house we paid $9 a month and it's gone up every year," she said. "It doesn't seem fair."
Company officials said in the past few years they have taken in 50-60 small sewer systems and all pay the same rate. Fixed costs go into making up the sewer rate and don't take into account how many people live in a home.
When Missouri American made it's last rate increase proposal four years ago, company officials said there were problems finding out who was not paying their bills.
That issue came up again at Monday's hearing when company officials said they had just completed a two-year audit. This spring, notices will be sent to those found had not been paying.
"Why don't you have a list," asked Stacy Bushman who lives on Summit View Drive in Holts Summit. "Your company is not small. I know there are people on my system not paying. I can't afford $65 a month now.
"This same thing happened to my grandmother years ago in Taos when her sewer rates went from $30 to $60 a month. She couldn't afford it and we had to move her to an assisted living facility. If you knew who was not paying you could get more money and you wouldn't have to ask for a rate increase."
Company officials said it can be hard to find out who is not paying since when they take over systems, many of which are small. Some developers hook up homes into the service and don't tell the homeowners where the service is coming from.
"Rates never go down," said Richard Allen who lives in the Sleepy Hollow subdivision in Cole County. "I'm tired of hearing that new regulations are what is driving the need for increases."
"I'm just mad," said Cole County resident Carol Beach. "I live in a subdivision with 12-13 homes and for the 38 years I've been there, with three different sewer services, I've never seen any upgrades to what I would call the machine they use to take care of sewage. You can't tell me it costs $800 a month to take care of all those homes. I make sure to put "corporate greed' at the bottom of my check every month I send it in."
The Office of Public Counsel (OPC), which is separate from the PSC and represents the interests of Missouri American customers in this case, did provide written opposition to Missouri American's proposal.
Among the key features that OPC opposes is the consolidation of Missouri American's eight water districts into three rate zones. The OPC said this would require customers in lower-cost water systems to contribute towards costs incurred by higher-cost water systems.
Under the company's proposal, a Jefferson City Missouri American water customer using 4,200 gallons a month would see the rate would go from $41.03 to $44.40. Company officials said no water rate increase has occurred in four years while they have put in $7.1 million in improvements, including building a new 1.5 million-gallon storage water tank off Missouri 179.
In light of the national attention given to the lead problems in the water system in Flint, Michigan, some at the hearing asked if the Jefferson City water system is being monitored for lead.
Dave Treece, manager of the local Missouri American operation, said no lead issues have been detected in the water here.
By law, the Commission has 11 months from Missouri American's July 2015 filing to make a decision.
Formal hearings will be held March 14 and 25 in Room 310 of the Governor Office Building on Madison Street. While no public comment is allowed at these hearings, they are open for the public to attend.
Those who wish to make written comments or secure additional information, can contact the Office of the Public Counsel, P.O. Box 2230, Jefferson City, MO 65102, telephone 866-922-2959, email [email protected] or the Missouri Public Service Commission, P.O. Box 360, Jefferson City, MO 65102.