The Missouri Public Service Commission is considering rate cases that could more than double what Eugene customers pay for water service.
No members of the public attended a PSC hearing Tuesday night regarding water and sewer rate cases filed by Confluence Rivers Utility Operating Company Inc. that would affect some Cole County residents in the Eugene area.
Confluence Rivers, which is based in St. Ann, filed water and sewer rate cases with the PSC on Aug. 26 seeking to increase annual water operating revenues by approximately $368,360 and annual sewer operating revenues by approximately $527,721.
Confluence Rivers serves approximately 710 water customers and 639 sewer customers in nine Missouri counties, including parts of Cole County.
Earlier this year, the PSC approved an agreement authorizing Confluence Rivers to purchase the assets of the Eugene water system in southern Cole County. The water system was the last remaining piece of the formerly incorporated town. The system had been the responsibility of Cole County government since 1997 until the PSC approved the agreement. The county had been trying to sell the service because the water system would lose money due to its aging infrastructure and small number of customers, some of whom did not pay for the service.
Confluence Rivers does not provide sewer service for Eugene, as it is handled through private septic systems.
Confluence Rivers is seeking to establish a single water rate and a single sewer rate for all of its customers, PSC officials said.
The proposed rate is $63.76 for water (based on an estimated 2,500 gallon usage per month), Confluence Rivers officials said. Eugene customers currently pay $30 per month for their water service from the company.
There are 43 residential customers and five commercial customers served by Confluence Rivers in the Eugene area.
PSC staff is in the process of conducting a full audit of the company to determine not only what the annual revenues should be, but also if any operational changes are necessary.
Confluence Rivers has made several upgrades to the Eugene system, including adding equipment to provide real-time monitoring for proper reporting and operations, and tank work done for longevity and to meet DNR standards.
The Office of the Public Counsel, which represents the interests of the public in any proceedings before the PSC, is also going through Confluence Rivers' records to make its own determination.
According to information from the OPC, customers should be aware a second and potentially much larger rate increase should be expected to be filed by Confluence Rivers in the near future because this rate increase doesn't include all the costs for improvements the company intends to make to the systems.
Also, because the company is seeking to consolidate rates across all of its system, the OPC is interested in hearing from the public about spreading the costs of any improvements made to the systems across all of the company's customers.
Utility rates are established to cover the costs to provide service, plus an authorized amount of return on the company's investment, PSC officials said. PSC staff will seek a settlement with Confluence Rivers to avoid the expense of an evidentiary hearing, but if an agreement can't be reached a hearing will be held in the spring.