Officials at the Missouri American Water Ground Water Treatment Plant give a tour to St. Joseph News-Press staff inside the facility that processes 18 million gallons of water daily. Missouri American Water has filed a request for a rate increase of 28 percent to help offset higher production prices and investments in infrastructure upgrades. The average customer would see an additional $8.38 in their monthly bill if the Missouri Public Service Commission approves the application.
St. Joseph residents may need to brace for another double-digit increase in their water rates - one that the water company says it needs desperately to upgrade its aging infrastructure.
The 28 percent increase would add $100 to the annual water cost of the average single-family homeowner in St. Joseph and give Missouri American Water's local operations millions more in revenue each year.
The utility cites roughly $2.6 million in improvement projects in the past year and scheduled for the next six months that it must recoup with its latest water hike:
-$296,000 to establish a lagoon discharge system to safely release water into area public streams.
-$375,000 to install a new 20-inch main under railroad tracks on Illinois Avenue in the South Side.
-$96,000 to cover remaining costs to install more than three miles of 12-inch main in southeast St. Joseph.
-$609,000 to replace old water meters.
-$343,000 to replace old water service lines from street mains to customers' homes.
-$166,000 to replace old fire hydrants.
-$720,000 to pay for smaller projects such as dehumidifiers and a distribution pump at the utility's treatment and distribution facility.
For the average single-family homeowner, a 28 percent increase would mean a new annual bill of roughly $455, compared with the current bill of about $355. The increase, if passed by state regulators, could take effect within a year.
Missouri American filed its rate request a week ago. The utility says costs for energy, insurance and water main repairs have outpaced the rate of inflation.
"If we did not make these improvements, the reliability factor would go down tremendously," said Mike Wood, operations manager in St. Joseph. "And the only way to recover those costs is through rate increases."
By making upgrades, Missouri American says it's being proactive and also complying with state mandates. By early spring, it plans to replace a pipline more than a century old on Illinois Avenue that, if it were to rupture, would wash out and stop all trains headed south, the utility says.
For public safety, Missouri American also replaces older fire hydrants and color-codes them so firefighters can easily tell the pressure range. The utility says there are nearly 3,100 hydrants in the St. Joseph area.
State regulations also require that utilities replace water meters every 10 years. Missouri American says it changes between 2,000 and 3,000 local meters each year.
The utility serves about 32,500 residential and business customers in the St. Joseph area and in smaller communities and unincorporated neighborhoods just south to the Platte County line.
Across its system, Missouri American has filed requests for increases of 22 percent in St. Louis County, 23.7 percent in St. Charles County, 18 percent in Joplin and 13 percent in Jefferson City.
The proposal, if approved, would be the largest local increase since 2007, when water rates jumped 29 percent. Previously, the highest increase was 38 percent in 2000, which was approved shortly after Missouri American opened a $75 million water treatment and distribution facility in St. Joseph.
The proposed increase comes as economists say the recession is easing, but social service agencies say more people are struggling with utility bills.
Some companies have cited high water rates as a reason not to do business in the city. Missouri American says its "state-of-the-art facility" can process more than 30 millions gallons per day - a boon to any industry wishing to relocate to St. Joseph.
Two companies, Triumph Foods and Nestle Purina Petcare, currently qualify for reduced water rates because they use millions of gallons of water per day. Pork processor Triumph says it may team with other major employers in St. Joseph to argue against the hikes, as it has in the past over electricity and steam rates.
The Missouri Public Service Commission, a five-member body that sets rates, will hear public comments from local residents over the next year. Missouri American also plans to hold public forums to argue in favor of the hike.
Ahmad Safi can be reached at ahmadsafi@npgco.com.
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ApparentlySo says...
If they are already replacing the meters on a ten year cycle, isn't that already funded then? Why are they including it again?
And the water rates are higher for rural users, inside and outside of the city. So more "inside the city" b.s. at the end of the article is just hate mongering.
When are we going to get some journalists who know how to research all sides of an issue?
November 8, 2009 at 6:01 a.m. ( permalink | suggest removal )
pops says...
Missouri-Americna Water is out of line on this one. Some of what they're proposing is merely the cost of doing business. It wouldn't be so bad if there was oversight to make sure the increases weren't merely going to increase salaries and benefits. It's not that I oppose people getting pay increases, but when the company comes to the public and demands a rate increase to replace aging infrastructure, and THEN hands out bonuses, pay and benefit increases, and other things that are NOT infrastructure-related, it's dishonest. It's happened before...and I dare say it'll happen again. Personally, I think the PSC is more at fault. They're typically just a "rubber stamp" for the utility companies. If they were doing their job, they'd watch these companies, and keep them honest and transparent, and force them to do what they SAY they're going to do with the money. If they don't, they should remove the increase! I sure wish I could go to my employer and demand a 28% pay increase to replace MY aging infrastruture....like my car, my house, my wardrobe, etc.
November 8, 2009 at 6:33 a.m. ( permalink | suggest removal )
chara says...
psc, what a damn joke. the consumer will come up on the short end again. my water bill already runs $70 a month. cost more than my electric bill. enough is enough.
November 8, 2009 at 7:10 a.m. ( permalink | suggest removal )
77cod says...
I thought ongoing maintenance and upgrades of facilities were part of planning and done ongoing so it does not become a "big" cost burden? Is this need for upgrades something that just happened? Should the water company be planning and saving or working on this as an ongoing cost of doing business? No private company operates in this fashion. This does not seem right just because you are a monopoly that you can operate with no responsibility. Were are our elected/appointed officials that are suppose to protect us and serve for our well being?
November 8, 2009 at 9:02 a.m. ( permalink | suggest removal )
chara says...
there haveing dinner with them so they can get their campaign checks. so bend over again ratepayers your going to need a lot of vasoline before it over.
November 8, 2009 at 9:26 a.m. ( permalink | suggest removal )
donaldo says...
i thought when i had low water pressure in my home i called and they said i had to replace my line from the meter to my house. they didn't tell me that they would replace it. they told me anything from the meter to the house was my responsibility. i had a guy dig it up and replace it with a three quarter inch copper line. if they were suppose to do it, someone was lying to me.$343,000.00 would be saved , i payed my own cost for this.now they pay for this? i want a refund! they will get this because the PSC will side with the water company. how much to dig a well in your back yard? or is there a city ordinance against that also? oh well, we have to eat and drink, we also have to die, i hear that is expencive too.
November 8, 2009 at 10:51 a.m. ( permalink | suggest removal )
eastsidedweller says...
I live in the county and our water comes from Missouri American. My water meter has not been replaced in 40 years! The water smells like South St. Joe and is oily looking. The bill runs between 60 and 70 bucks a month, it is ridiculous.
November 8, 2009 at 11:58 a.m. ( permalink | suggest removal )
thenfixit says...
Give them nothing. They are ran by a bunch of bully idiots. I got a $72.00 water bill for a month I was gone for two weeks. That was twice my regular bill. They said they could do nothing and if I did not pay it they would shut off my water. Screw them..
November 8, 2009 at 2:14 p.m. ( permalink | suggest removal )
lbc says...
38% in 2007
28% in 2009
This is about like Congressional salaries.
This doesn't pass the smell test. We need to get the Public Service Commission to hold public hearings IN ST JOSEPH and get this out on the table.
November 8, 2009 at 3:43 p.m. ( permalink | suggest removal )
StJoeMoe says...
What brilliant city official sold the water company in the first place? They should be tracked down and sentenced to prison for selling the city out.
I'm looking into digging a well - for "$455.00" a year, it might more than pay for itself.
Is the water companies budget and/or P&L public information?
November 8, 2009 at 6:22 p.m. ( permalink | suggest removal )
mm1967 says...
They touched on replacing old water meters.We had a meter that was bad and for several months our water bill went from 70 dollars a month which is normal for us to 110 a month I called and complianed and they told me I must have a leak.After they checked and found we had no leaks they forgot us.I continued to complain and they finally took our meter to have it tested in their shop here in town.It showed to be bad.Since the new meter was installed our bills are back to 70 dollars a month and when I try to get someone tell me if I will be getting a credit or any info from them they will not address the issue.I went 2 months without paying my bill and then I got their attention but still have not got anything solved with them.I would say if peoples meters are running fast like mine did and you feel your bill is to high make them test it.As far as I am concerned they overcharged me for 8 months for 40 dollars a month and they will not admit it even though their meter showed it and the letter they sent me said so much.Maybe the PCS should check into things like this people being overcharged because of their equipment and then not making it right with the customers.
November 8, 2009 at 7:21 p.m. ( permalink | suggest removal )
CBROWNJR says...
Last time they wanted money it was for updates(look back in news-press stories), didnt they fix them then, or did they just bank the money away to show a bigger profit and now its starting to get a little low and now they need to rise the rates again to fatten their pockets.
November 8, 2009 at 8:36 p.m. ( permalink | suggest removal )
ArmyRetired says...
We moved here less than two months ago and this is the most expensive water service that I have ever had to pay for. I live in a duplex now and pay more than I ever did in my house prior to moving here. This is ridiculous. See you at the forum to vote against allowing these clowns to raise their rates...
November 8, 2009 at 10:20 p.m. ( permalink | suggest removal )
megafrog says...
I pay as much for water, sewage and trash pick up in Wisconsin for three months as I did in St Joseph for one month. Missouri American Water is a monopoly that needs some competition as they are already priced out of line for an area with such an abundance of water. Give them nothing as they deserve nothing.
November 8, 2009 at 11:18 p.m. ( permalink | suggest removal )