The Public Utilities Commission of Ohio (PUCO) has approved an agreement that allows Ohio American Water Company (Ohio American) to increase its water and wastewater rates.
The agreement, filed on behalf of Ohio American, the Ohio Consumers’ Counsel, PUCO staff, Dragoo Management Company and the City of Marion, provides Ohio American with a rate of return of 8.12 percent.
With the approval, customers in Ohio American’s Ashtabula, Lawrence County, Marion and Tiffin service areas will see an average increase of 11.18 percent for water service.
Even though it is a double-digit increase, Marion may have gotten lucky compared to other areas.
Customers in Ohio American’s Portage County and Franklin County service areas will see an average increase of 30.37 percent for water service; and Ohio American customers will see an average increase of 36.94 percent for wastewater service.
The stipulation approved by the Commission also addresses several issues, among them providing budget billing information on bi-monthly customer bills and not disconnecting a customer’s service unless the amount owed is greater than $75.
In approving the agreement, the Commission found that the rate increase should enable the company to recover expenses while improving water quality. The agreement also includes specific commitments that are designed to address water quality and service issues.
Ohio American filed an application to increase rates on Nov. 13, 2007. Local public hearings were held in Mansfield, Marion, Galloway and Westerville. The stipulation was filed on Sept. 4, 2008.
The approved rates will become effective when Ohio American files tariffs consistent with today’s Commission opinion and order.
