Water board drops bid to hike rate

It would have meant that Valley Falls residents would pay much more than other Pawtucket Water Supply Board customers.

01:00 AM EDT on Monday, September 19, 2005

By ARTHUR KIMBALL-STANLEY Journal Staff Writer

WARWICK -- The Pawtucket Water Supply Board withdrew its application to charge a higher rate for Cumberland's Valley Falls residents early Friday afternoon, after a comment from the commission's chairman indicated that their request would most likely not be approved.

"It kind of became clear that the decision that was likely to be made was not in our favor," Joseph Keough Jr., the water supply board's lawyer, said. "Rather than waste time and money we decided to withdraw the application. We do plan on resubmitting next year."

The decision to withdraw the application came shortly after comments made by the commission's chairman, Elia Germani, where he stated that he would probably not support the proposed surcharge for Valley Falls residents.

The proposed surcharge would have left Valley Falls residents with a 37-percent rate increase for their water, while customers in Central Falls and Pawtucket would have seen their water rates increase by 17 percent.

Pamela Marchand, chief engineer for the water supply board, said the rate increase difference was needed to make up for the cost of taxes on tangible property imposed by Cumberland on the water board's pipes in Valley Falls. Marchand said those pipes are only used by Cumberland residents and that the cost of paying taxes on them should not be covered by residents of any communities other than the one that benefits from them.

Despite withdrawing the application, Marchand said the water board still holds this position.

"We still contend that the concept of the surcharge is appropriate," Marchand said. "But, we'll fight that battle another time."

Marchand said the water board plans to wait until the case between Cumberland and the board over how much the town can charge for the pipes, currently being fought out in superior court, is decided before they attempt to impose the surcharge again. "There are still a lot of questions that need to be answered and we think it's in our best interest to wait until that case gets settled," she said.

Cumberland Mayor David S. Iwuc said he was very pleased with the outcome of the commission's hearings. "It's a win for Cumberland," Iwuc said, "now that the possibility of a 37 percent increase is gone."

The PWSB now has 45 days to resubmit an application for water rate increases. However, any increases for next year will have to be uniform for all their customers, no matter which town they live in.