Hefty water rate hike facing stiff opposition
Posted Sep 14, 2010 05:29:48 AM.
This article is more than 5 years old.
Hearings continue at the Utility and Review Board today into a proposed water rate hike – which is getting plenty of opposition.
The Halifax Water Commission is asking its regulator to increase rates for most residential customers by more than 40 per cent over the next seven months.
It represents a staggering amount for the average ratepayer, who currently pays about $117 every three months.
If the rate increase is approved, that would jump to just under $165 per quarter – or another $200 per year.
The utility says it needs the higher rates to pay for operation costs at the new sewage plants and replacing billions of dollars’ worth of old water mains and sewer lines.
“We’re not hiding anything, these are the costs we believe we need to operate the utility,” Commission treasurer Blaine Rooney told the Board on Monday. “The storm water costs from 08-09 were just enough to meet the operating costs. It didn’t include any overhead cost that previously, prior to the transfer, was covered by the tax base.”
Thirteen groups will appear at regulatory hearings to speak against the increase this week, including the consumer advocate, who says he’s not convinced the utility has proved its case for a rate hike.
Ratepayers in Halifax aren’t happy with the Commission’s plans. Daniel tells News 95.7 he has no problem with increased operating costs, but says the amount of the rate hike suggests a lack of forward planning.
“Creep it up a little slow, but not banging you like that,” he said. “I can see maybe 10 per cent, but that’s a little ridiculous. That’s an awful increase.”
Doreen says it may be time for the province to step in.
“Why don’t they split it, 50-50?” she suggested. “They pay half and the residents pay half. That’s a big hike for some people.”
Water commission officials were grilled on Monday over a lack of details in their request. Rooney defended the submission, saying it’s only the second time they’ve come before the UARB.
