PUC to make case for double water rate

9/16/2005 By Jo C. Goode for The Times

WARWICK - Today the state Public Utilities Commission (PUC) will hear arguments on why Valley Falls water customers should pay a double rate to the Pawtucket Water Supply Board.

The water board wants to create a two-tier rate that would have Cumberland residents foot a 37.3 percent hike, with Pawtucket and Central Falls customers paying 16.7 percent.

The water board also has an alternate proposal for an across-the board hike of 20.3 percent to increase the water utility's operating revenue to $20 million.

This is the second time in two years that the water board has attempted to get a special surcharge for Valley Falls from the PUC. As was the case in February 2003, the board is trying to impose the increase in response to a tangible tax hike for the board's property in town.

The water board has filed a lawsuit against the town's assessment, which is pending in Superior Court.

The PUC rejected the board's first request.

After filing for intervenor status in the rate hike hearings, the town's attorney, Michael R. McElroy, attempted to stop the water board from reapplying for the surcharge with the PUC.

In an 11-page memorandum, McElroy argued that an administrative agency couldn't accept a second application from the utility company since the material circumstances of the issue haven't changed.

But PUC attorney Cindy Wilson-Frias said the commission denied the town's request because in the first case they determined there was not enough information, particularly from Cumberland, which failed to provide discovery information that was requested.

"Now Cumberland is a full participant, the commission felt there were too many unanswered questions," Wilson-Frias said.

The water board hearings began on Tuesday. Only two of the three commissioners are hearing the case. Commissioner Mary E. Bray was recused because she is a city council member in Pawtucket.

Several town leaders and residents spoke against the two-tier rate increase. Mayor David Iwuc, who attended the first hearing, said he and other town officials would attend today's hearing.

Town Councilor Tony Nobrega, who blasted the water board's attempt to levy a surcharge in his district, said he hoped to have another opportunity to address the commission.

The issue of the Valley Falls rate hike is scheduled to begin at 9:30 a.m.