|
Article
Courtesy of The Tampa Tribune
By Laura Kinsler
Published
December 30, 2011
NEW PORT RICHEY -- State Sen. Alan Hays didn't mince words last September when he testified before the Public Service Commission about a proposed rate increase for privately owned Aqua Utilities.
The Lake County Republican told commissioners he would do everything "that is humanly possible" to stop the rate increase, which he compared to "state sanctioned extortion."
"That company is the single source of the most complaints from constituents that come to my office, and it's just rip-off after rip-off after rip-off, and I'm sick and tired of hearing about it," Hays said at the hearing.
This month he followed through on his promise, filing a bill that if it ever became law would all but put Aqua out of business in Florida.
"As far as I'm concerned, that would be a good thing," Hays said. "It's not just Aqua Utilities; I don't want any utility to get away with the kind of business practices they used. Their policies are totally and completely inexcusable and intolerable."
Aqua Utilities serves 23,000 water customers across the state, including some 3,200 in Pasco County. The average Aqua customer pays about $150 a month for water and sewer service.
In May, the PSC found the company's service record was "marginal at best."
The Office of Public Counsel, which represents consumers in utility cases, argued that Aqua's services should have been found unsatisfactory and appealed the ruling.
Senate Bill 1244 would eliminate tiered rate structures — fundamentally change billing practices for both public and private water companies — by making it illegal to charge customers higher rates if they use more water.
"It's an effort on my part to terminate this practice of conservation rates," Hays said. "I don't care who the utility is. If the state of Florida wants to fine people for spending over a certain amount, then fine them, but don't let the utility companies harvest a windfall of profit."
Another key element of the bill goes right to the heart of many Aqua customers' complaints: the taste and smell of the water. "How would you like to draw a glass of water and have to hold your nose because of the smell?" he asked.
Hays included a provision in the bill that requires water companies to provide drinking water that not only meets state and federal environmental standards, but also is "reasonably free from objectionable taste, color, odor, or sand or other sediment."
A utility company that fails to meet the new standards would be subject to financial penalties and could be forced to turn its water system over to the host county.
State Sen. Mike Fasano, R-New Port Richey, said he fully supports the bill. "It's a very pro-consumer bill," he said. However, he's not sure how far it will go in Tallahassee where utility companies wield significant power.
Fasano said he plans to offer an amendment lowering the guaranteed rate of return for private utilities. He said current law requires the PSC to approve rates that guarantee double-digit profits for utility companies as long as they provide satisfactory service. Companies such as Aqua, which have marginal service, are still guaranteed a profit.
"In this economy, where banks are paying less than 1 percent interest, here's a utility company with marginal service that's being guaranteed a nearly 10 percent rate," Fasano said.
|