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‘Consumer session’ scheduled for proposed water, sewer rate increase

Updated March 12, 2020 - 5:01 pm

Pahrump consumers will have an opportunity to offer comment and learn more about proposed water and sewer rate increases by Great Basin Water Co. during a consumer session.

The Public Utilities Commission of Nevada has scheduled a “consumer session” at 6 p.m. on Wednesday, March 18 at the Nye County Commission Chambers, where the agency will hear public comment. Great Basin has proposed an increase of 7.9% for the average residential consumer for water service and a 3.52% increase for sewer service.

In a press release earlier this year, Great Basin Water Co. President Wendy Barnett said, “As a public utility, GBWC has an obligation to deliver sustainable, safe and reliable water and wastewater services at a reasonable cost. The PUCN is charged with determining if the utility has acted to balance between these goals.”

In that release, Great Basin stated that the utility had last filed for a rate adjustment in December 2016, where the PUC requires the utility to file a rate case every three years.

“By September of 2017 the PUCN had reviewed that rate case and granted permission for an increase of almost 15% for water service,” a Jan. 31 story in the Pahrump Valley Times stated. “Combined with the unchanged rate for sewer service, the overall increase to residents’ bills in 2017 was reported at 6.54%.”

According to Great Basin’s release, the rate hike would bring a monthly increase of $2.92 for water service for the average residential customers and those living in a multifamily (apartment) dwelling. The average residential consumer would also see a monthly increase of $1.68 for sewer service.

“While we understand there is never a good time to increase rates, these rates are based on the actual and complete costs of providing safe and reliable water and wastewater services,” Barnett stated in the release. “These suggested adjustments will be thoroughly examined by the PUCN, its staff, as well as the BCP (Bureau of Consumer Protection) prior to impacting our customers.”

In the PUC’s release, the agency notes the proposed rate increases in Great Basin’s application, where “the monthly fixed water charge for residential 1-inch meters would increase from $23.89 to $25.66 (7.41%). The company proposes to increase residential and commercial water usage charges approximately 7.41%. Monthly residential sewer rates for 1-inch meters would increase from $46.24 to $47.92 (3.63%).”

Great Basin’s proposed changes will “result in an estimated overall water service revenue requirement increase of 7.9% annually ($321,533) and a 3.52% increase ($117,729) in the sewer revenue requirement,” according to the PUC’s release.

The proposed rate increases are being driven by new facilities and other operating and maintenance expenses.

“In its application, GBWC says the proposed increases are driven primarily by new plant facilities, operating and maintenance expenses GBWC incurs to provide water and sewer services to its customers, and the allowance for it to earn a reasonable return on the funds shareholders have invested in the company,” the PUC said in its release on the upcoming consumer session.

The PUC can adjust rates as it sees fit.

“Based on the evidence presented in the case, the PUCN may approve rates as proposed, or decrease or increase rates as necessary to ensure rates are just and reasonable,” the PUC said in its release.

During the consumer session in Pahrump, public comment could be limited to five minutes per speaker, according to the PUC’s release.

Regulatory operations staff from the PUC will be in attendance, along with representatives from the Nevada Attorney General’s Bureau of Consumer Protection and Great Basin.

The PUC has scheduled hearings for Great Basin’s application for May 29 and June 9.

For more on the Pahrump event, call 702-486-7210 or by going to puc.nv.gov and searching under the consumer sessions link.

Contact Interim Editor Jeffrey Meehan at jmeehan@pvtimes.com On Twitter @pvtimes

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