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County Opposes Utility Rates Legislation

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By Carl  Orth | The Suncoast News

Published: February 24, 2009

NEW PORT RICHEY - County commissioners don't like a proposed state law they believe could raise rates even more for Aloha Utilities customers in southwestern Pasco.

Commissioners today came out in opposition to a bill that would place the Florida Governmental Utility Authority under the Florida Public Service Commission to determine rates. That would translate into another rate hike of 4.5 percent for Aloha customers at the least, they argued.

The sale of the privately owned Aloha to FGUA is set to close Friday. Customers already face higher rates under the authority's ownership. The estimated increase is $88.57 for a typical, monthly bill for water and sewer based on 7,000 gallons of potable water consumed.

Rate increase filings through PSC typically are expensive, commissioners pointed out. The complex rate cases can cost a utility $300,000 to $500,000 and drag on for 12 to 18 months.

Senate Bill 1192, the legislation that would put FGUA under PSC rate-setting authority, and a companion measure, House Bill 691, have been filed for lawmakers to consider during the 2009 regular session of the Legislature, starting March 3. The bill would end the exemption from PSC rate regulation held by "certain legal entities."

Commissioners will forward a resolution stating their objections to the legislation state lawmakers. If the legislation appears headed for passage he will go to Tallahassee to lobby against it, Pasco County Commission Chairman Jack Mariano vowed today.

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

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