Rate Hikes Without Public Hearings Upheld In N.C.

After a lengthy battle, water utilities in North Carolina will retain the ability to raise rates without the burden of holding public hearings.

The state Supreme Court decided that a state policy permitting rate hikes “serves the public interest by allowing private waterworks to recoup expenses for infrastructure improvements needed to upgrade drinking water quality,” The News & Observer recently reported.

“The rate increases without public hearings apply only to certain infrastructure improvements on existing pipes and pumps, but are not allowed for construction of new projects and extensions. Typical infrastructure improvements involve projects to filter out naturally occurring iron and manganese from groundwater,” the report said.

The rate hike policy had been approved by the state legislature and was later adopted by state regulators. It was “requested by Aqua North Carolina, the state’s largest private water utility with 90,000 water and sewer customers in the state. The policy was approved by the Utilities Commission in May 2014,” the report said.

The state Attorney General Roy Cooper said the policy would enable the utility to spend exorbitant amounts of money and stick customers with the bill.

The court opinion said that “the commission’s decision was based upon sufficient findings of fact and was supported by competent, material and substantial evidence in view of the entire record,” according to the Winston-Salem Journal.

Aqua America commended the decision in a statement: “The court’s decision is great news for customers of regulated water and wastewater utilities throughout North Carolina,” said Aqua America President and CEO Christopher Franklin. “The ruling enables Aqua and other water companies to continue to accelerate much-needed capital spending to improve quality and service for our customers, and the state provides rigorous oversight and approvals for every project.”

Aqua America is a publicly traded water utilities serving about 3 million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana, and Virginia.

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