Midlands, York County water customers get a reprieve from major rate hike
Some water and sewer customers around South Carolina will pay more for the services this year, but not as much as they feared.
Blue Granite Water Co. had sought to raise rates as high as 56% on customers in the Midlands and Upstate. But at the direction of the state Public Service Commission, the company filed two revised rate plans this week.
Under one plan, rates would increase between 12% and 24%. For residential customers, the base water rate could go up between $2 to $6 per month depending on their service area, while sewer rates could go up $12 to $15, according to a proposal filed with the PSC by Blue Granite.
That compares to estimated increases of $25 to $35 a month for water and $26 to $36 for sewer, which is what state regulators estimated the initial proposal would cost customers when Blue Granite filed its request in October.
The company also submitted an alternative plan to the PSC that would not raise its base water rates at all, and only raise sewer rates by 24%.
Commissioners will consider both plans and issue their final order by Thursday.
“High base facility charges are regressive and cause economic hardship to low and moderate income customers, senior citizens on fixed incomes, and customers with low water usage,” the PSC wrote in its directive to the company.
Blue Granite serves 30,000 customers across the state, including several communities in Lexington and Richland counties, as well as communities near Rock Hill in York County.
Blue Granite has cited $23 million worth of infrastructure improvements the company has undertaken in recent years as necessitating higher rates, including connecting its Lake Wylie facility in York County to Charlotte’s water system and tying its Friarsgate treatment facility in Irmo in with the city of Columbia’s. The company also cites the cost of new technology to “increase customer service and reliability.”
Blue Granite officials worry a more limited rate increase won’t allow them to recoup “pass through” costs the company has absorbed from municipal systems that provide the company with water. Earning that money back accounted for 43% of the company’s proposal, said Blue Granite spokesman Dave Wilson.
Many municipal systems in Blue Granite’s service area have also introduced rate hikes in recent years. York County’s water system has raised rates three times in the last four years, according to Blue Granite.
Blue Granite hopes the PSC’s final order will grant them some ability to recoup those costs, which are necessary to invest in future infrastructure needs.
The commission’s directive didn’t stop at holding back the water company’s proposed rate increase. Noting the large number of customer complaints shared at a series of public hearings the PSC held on the company’s rate request, the commission ordered Blue Granite to implement a new system to track and respond to complaints, and to update the commission quarterly on its handling of complaints.
“These and other problems relating to customer service are not new problems with this utility and are not acceptable,” the commission directive reads.
The directive also orders Blue Granite to conduct a water audit and create a water control program to reduce the amount of water the company loses before it reaches customers. The company can only recover 10% of the cost of the water loss from customers, according to the PSC.
The commission did approve a Blue Granite proposal for a voluntary “round up” program, rounding bills up to the nearest dollar and using the extra revenue to create a fund for low-income customers.
Any changes to customers’ utility bills won’t come into effect until Sept. 1.
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