WATER INDUSTRY NEWS
MA town proposes rate hikes of 40 percent
Tuesday, November 24, 2009

AMESBURY, MA — Some families here may see as much as a $450 increase in their water bill over the course of next year as the town struggles to repay bonds it issued for construction of its new water treatment plant, The Daily News of Newburyport reported November 21.


The town recently proposed an immediate rate hike of about $72 annually for residents fitting the “typical” usage profile, the article said. Town officials also have said another increase between $172 and $230 annually for typical usage will be necessary within six months after the first increase. Residents who don’t fit the typical usage profile — such as a family of four — may see an initial rate increase of $216 instead of $72, Department of Public Works Director Rob Desmarais said in the story.


Construction on the treatment plant is scheduled to begin January 1. Desmarais said the first of the bond payments comes due in spring 2010, and the town must have money in reserve to make payments.


“What we don’t want to do is raise the rate 40 percent (immediately). Part of the advantage of raising the rate now is banking that money,” Desmarais is quoted in the story as saying.


To read the story, click here.


For related information, click here.

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