Lake residents could pay more for water, sewer

by Nancy Hogland

Lake Region Water and Sewer Company, which serves approximately 140 customers on Horseshoe Bend and 600 customers on Shawnee Bend, is seeking a rate increase.

General Manager John Summers said the hike, formerly requested Oct. 7, 2009 from the Missouri Public Service Commission (PSC), is needed because rates haven’t changed in 12 years.

“No one likes to have their rates raised – and we don’t like to raise them – but it’s something we need to do to be able to continue upgrading and expanding our systems so we can provide safe and adequate service. We know we’re going to have to expand the treatment plant on Shawnee Bend and that will be a big expense,” he said, adding that even with the increase, rates still will be the same or, in some cases, lower than what some of the other providers are charging.

Lake Region’s current residential rates are $21.96 per month flat rate for sewer on Shawnee Bend. With the proposed 61-percent increase, that rate would rise to $35.36. Horseshoe Bend sewer customers currently pay $25.54 per month. If the requested 25-percent increase is approved, the new rate will be $31.93. Its standard residential rate for water is currently $11.54 for the first 3,000 gallons and then $2.16 per 1,000 gallons after the first 3,000 gallons. They are requesting a 17-percent increase for water rates which would bring the base rate to $13.50 and increase the per-1,000-gallon rate to $2.53.

The rate charged for water by the city of Osage Beach to metered city residents is $14.38 for the first 1,000 gallons and then 69 cents per each additional 1,000 gallons. The rate for non-residents hooked into the system start at $62 per month for 1,000 gallons. The minimum sewer bill for city residents is $26.38 for the first 1,000 gallons and then $1.64 per each 1,000 gallons additional.

Lake Ozark is in the process of revamping its rates. Currently residents pay a base rate of $10.82 plus $5.10 per each 1,000 gallons used. Under the new plan, the cost of the first 1,000 gallons would rise to $20 with a 25-percent increase planned for 2013. Residential sewer rates, which are based on the amount of water used, include a base rate of $15 and $2.75 for each 1,000 gallons of water used.

Linn Creek charges a flat fee of $10.86 for each 1,000 gallons of water used.
Summers said the PSC has already completed a Cost of Service study which looked at Lake Region’s payroll, debt service, anticipated construction costs - even its method of calculating depreciation and its cost of office supplies - to determine if the requested increase was reasonable and justified. Although the Four Seasons Lakesites/Porto Cima Property Owners Association is battling the hike, according to the study, the commission supports Lake Region’s rate proposal for Shawnee Bend and recommends approval.

Because the Four Season’s Racquet and County Club Property Owners Association has an on-going billing dispute with Lake Region and has not paid its full usage rates for several billing periods, the rates for Horseshoe Bend are still under discussion, according to Summers.

A hearing was held Jan. 26 to allow the public to voice their concerns. The next step will be a formal hearing before the PSC board March 29 to April 2.

“It’s a long process and since the Public Service Commission has 11 months from the date of filing to make a decision, this could go into September. However, I’m hoping we can work something out and have this wrapped up by May or June,” Summers said.

Customers can submit comments or obtain additional information by writing to the Office of the Public Counsel, PO Box 2230, Jefferson City, MO 65102 or by calling 573-751-4857. Comments may also be submitted online at www.psc.mo.gov.