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Hearing To Explain New Aloha Rates

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By Carl  Orth | The Suncoast News

Published: November 19, 2008

TRINITY - Aloha Utilities customers expect to pay more if the company is bought out and merged into the county utility operation.

But some customers figure at least they won't get soaked with rates that double or triple if Aloha remains a privately owned firm.

A public hearing on Monday, Nov. 24, will explain the proposed rates to customers.

Officials with the Florida Governmental Utility Authority will play host to the 10 a.m. Nov. 24 event at the West Pasco Government Center, 7530 Little Road, New Port Richey.

FGUA hopes to complete the purchase of Aloha by late December, and then turn around and sell the system to Pasco County.

Under current rates, a typical Aloha customer in the Seven Springs territory is paying $55.71 per month for water and sewage service. The figure is based on a customer consuming 7,000 gallons.

Aloha already got permission to raise the rate to $76.29 a month. If it had gone ahead with proposed treatment upgrades to improve its potable water quality, the monthly bill might have soared as high as $140.57.

Instead, FGUA is proposing a monthly bill of $88.57 once it hands the keys over to Pasco County. The buyout plan would gradually shut off Aloha's two problem wells within two years. Wells 8 and 9 had the highest concentrations of hydrogen sulfide blamed for the "black water" problems. So the expensive upgrades Aloha had planned won't be necessary.

In Aloha's smaller Aloha Gardens territory, customers would see a mild bump up in the rates. Those customers already pay a typical bill of $82.70 a month, which could go up to $87.90 after the FGUA-brokered buyout.

A deal could close by Dec. 17 after commissioners agreed to the $90.5 million purchase on Oct. 7. Aloha serves more than 20,000 customers in the Seven Springs area of New Port Richey.

The Committee for Better Water Now, a watchdog group of customers of Aloha Utilities, strongly encourages people to attend the Nov. 24 hearing for a better understanding of rate changes once the buyout is completed.

"Aloha customers and committee members are aware that this increase will come at a bad time, but the FGUA needs to put the higher rates in place to complete the purchase, and to upgrade the utility infrastructure to improve water quality and eliminate odor problems," committee chairman John Andrews said in a press release.

Wayne Forehand, who has led committee communications with the FGUA, reminded Aloha customers that rates could soar much higher if the utility remains in private ownership.

"They haven't improved and they're not going to improve," Forehand had said about Aloha executives at the Oct. 7 county commissioners meeting. "They're greedy and they want to make money."

Carl Orth can be reached at 727-815-1068 or corth@suncoastnews.com.

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