McCoy objects to Martin County Water District’s proposed fee and rate hikes: ‘This is cruel’

Nina McCoy

BY ROGER SMITH
MOUNTAIN CITIZEN

INEZ — Despite objections from one board member, the Martin County Water District is proposing higher meter charges, a higher rate on leak adjustments and new service requirements for customers.

Board chairman Tim Thoma presented the proposal during a special meeting Aug. 12. Following a 3-1 vote, the district will seek approval from the Kentucky Public Service Commission.

Under the proposal, certain nonrecurring charges, including meter disconnection, reconnection and turn-on, would increase from $20 to $30. Service calls and investigations would also jump from $20 to $30, while the flat $1,000 tap-on fee would change to “actual costs.”

A new provision in the district’s rules would obligate prospective customers to sign an easement agreement before receiving service.

Still the most contentious change involves leak adjustments. Currently, customers who qualify for an adjustment pay $2 per 1,000 gallons for the excess usage. Under the proposal, customers would pay $4.25 per 1,000 gallons for the overage, which Thoma said reflects the actual production cost.

McCoy objected to the fee increases, especially those affecting meter disconnection and reconnection.

“We’re adding basically $10,” she said. “These are the people who are already struggling and we’re adding insult to injury.”

McCoy advised her fellow board members that the Public Service Commission reduced those charges from $40 to $20 on Feb. 8, 2022.

“The PSC said, ‘You have to charge what it would cost.’ We can’t make a profit,” said McCoy. “Is there a reason?”

Thoma responded that he and Todd Adams, manager for Alliance Water Resources, which operates the system, determined the work costs $30 to perform.

“Every time we do that job, the district is spending $10 that we don’t recover,” Thoma said, adding that he wants to avoid a deficit that could trigger the PSC to raise rates on “everyone.”

McCoy pressed back.

“We’re already charging 10% for people who are late,” she said. “I know that is standard, too, but at the same time it just seems to me that this is cruel.”

Thoma acknowledged her concerns.

“I’m a ratepayer,” he said. “All of us are.”

Board member Vernon Robinson added that his water bill was $120 this month.

“But we’re the ratepayers who can afford to pay our bills,” McCoy said. “Sometimes people get in dire circumstances. It’s rough.”

Thoma, Robinson and board member Colby Kirk voted in favor of the proposal and McCoy opposed.

Financial records show the district does not incur additional costs for the nonrecurring services in question. Alliance performs those duties under its contract and receives the same amount each month: $168,507.

Adams stated that the $30 is Alliance’s cost to send an employee to a meter location.

Martin County Water Board in a special meeting Aug. 12.

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