PSC Denies United Utility Companies' Application for a Rate Increase

On May 6, 2010, the PSC denied the application for United Utility Company for an increase in water and sewer rates.  Following is an excerpt from the Commission's directive, and a link to the complete document:

"Residents testified that they knew of neighbors who had been receiving service, but who had not been billed for that service for several years. The Company presented a survey based on three neighborhoods that found 51 customers out of a total of 464 billable customers who were receiving sewer service without being billed, which is roughly 11% of those customers. The Company presented testimony that surveys are being completed of the entire system, but that these had not been completed. The Company was unable to

provide information as to whether billing determinants include those customers who are receiving sewer service but are not being billed. There was also a dispute about the appropriate number of Single Family Equivalents that should be used to determine the sewer rates for North Greenville University. The Company was unwilling to conduct a survey of North Greenville University to determine the appropriate number of Single Family Equivalents that should be billed. And, finally, although the Company has agreed to credit the customers, there were a number of cases of proration of bills that resulted in overcharges to wastewater

customers. Because of these factors, this Commission has no means of determining the appropriate revenue requirement for sewer services for the Company.  Unfortunately, the appropriate revenue requirement for water services is also in doubt."

A full Commission order will follow.