Ohio American Water’s (OAW) latest double-digit rate hike request came just five months after the foreign-owned utility was granted a 30 percent increase by the Public Utilities Commission of Ohio (PUCO).
OAW’s parent company, American Water, has been systematically raising rates for many of its customers in the 32 states in which it owns water companies. In the first half of this year, American Water reports that it filed rate applications in Indiana, Iowa, Ohio, Pennsylvania, Maryland and Illinois for $182.6 million in increased annualized revenues. As of July 31, 2009, the company was awaiting the results of rate cases in 10 states, which could generate up to $258.1 million in total annualized revenues.
According to American Water’s second quarter financial report, the company’s revenue increased four percent to $612.7 million. The rise in operating revenue, the company says, is due primarily to increases obtained through general rate cases.
OAW claims the proposed $17 million rate increase in Ohio is to help recover operating and infrastructure costs. OAW must accept responsibility for its operating expenses, and customers should not be forced to bear the full cost of improvements.
OAW rates have gone up three times since 2005. The PUCO has granted OAW rate increases averaging 21 percent every two years. In November 2008, PUCO approved a whopping 30 percent increase for water and an additional 37 percent for wastewater services. Now, OAW is back at the well for what amounts to an additional 60 percent overall rate increase by 2013.
OAW’s latest request includes a 23 to 27 percent overall rate increase in 2010 and subsequent step increases in 2011, 2012 and 2013. If approved, the utility’s overall rates for water service will have increased 325 percent since OAW purchased the utilities in 2002.
Contact the PUCO and elected officials today to tell them how the frequent, exorbitant increases are impacting you and your family. Discourage them from approving the proposed rate increase (Case 09-0391) and demand that pattern of increases be stopped.