Final rates for some Midlands, York County water customers set by SC regulators
S.C. regulators have set the final rates for customers of the Blue Granite Water Company, ensuring water customers in the Midlands and York County will be paying a much lower rate than the company had originally proposed.
An order by the S.C. Public Service Commission approved a water rate increase ranging from 12% to 23%, plus a 24% increase in sewer rates.
That’s less than the increase of up to 56% the company originally asked regulators to approve last year. But it does allow for a water rate increase, unlike an alternative proposal the PSC asked Blue Granite to draw up that included no water rate hikes at all.
Formerly called Carolina Water Service, Blue Granite serves 30,000 customers across the state, including dozens of neighborhoods in Richland and Lexington counties, as well as communities in the Upstate of South Carolina. Those customers will begin paying the new rate in September.
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.
The company responded to the order by issuing a statement that it is “exploring its options” for having the decision reconsidered.
Blue Granite notes the company has invested $23 million into new infrastructure in the last two years, and has had to absorb “pass through” costs in hikes from the local water systems from which Blue Granite purchases water.
The order issued late Thursday follows a series of contentious public hearings on the proposed rate hike, where customers in many parts of the state complained of past rate hikes and poor customer service.
“We are still in the process of reviewing the order, but it is obvious that the PSC heard the voice of the customers loud and clear in this case,” said Nanette Edwards, executive director of the Office of Regulatory Staff, which argued against a rate increase. “Blue Granite customers showed up in numbers at the various night hearings, even when delayed by weather, to voice their concerns and the PSC listened.”
On top of setting the rates, 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. One previous complaint came from a customer who “testified that the Company had wrongfully plugged his sewer line... resulting in his house being flooded with sewage.”
In response, Blue Granite noted its efforts to improve service.
“In the last two years, the company has implemented major changes in its service model, working with field operators and bringing major management changes to each market in South Carolina.
“Blue Granite Water is committed to meeting its customers’ needs for clean, reliable water and wastewater services,” the statement read.
The commission also approved Blue Granite’s plans to reimburse each water and sewer account $10.59, in return for over-collection of tax expenses after the company’s tax rate was lowered by the tax reform package passed by Congress in 2017.
But the PSC blocked Blue Granite from establishing a voluntary “round up” program, which would round up bills to the nearest dollar. The extra revenue would have created a fund for low-income customers.
Commissioners expressed skepticism the program could produce enough money to cover lower-income customers’ bills, and the order notes, “There was no evidence presented by the Company to indicate how many of its customers, if any, would benefit from such a program in Blue Granite’s service territory.”
Instead, the commission directed the company to cover the costs of low-income customers itself, rather than relying on ratepayers.
This story was originally published April 10, 2020 at 3:11 PM.
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