Lake Norman residents set to protest ‘absurd’ proposed water rate hikes at hearing
Homeowners from several prominent Lake Norman subdivisions plan to pack a Mecklenburg County courtroom Wednesday night to protest what they call exorbitant proposed rate hikes by their private water provider.
“Absurd,” Mooresville resident Fred Becker told The Charlotte Observer about Carolina Water Service of North Carolina’s proposed increase of about 29% over the next three years.
That’s on top of a 41.6% increase in April 2022, said Terry Ravas, a member of the The Point community’s board.
Homeowners also are contacting their state and local elected officials “to get visibility and answers on this price increase,” Ravas said in an email.
In late 2017, about the time that Carolina Water Service took over their water systems, customers were billed $6.70 per 1,000 gallons of water, Becker said. At the end of the three years of proposed increases, if approved, that will have jumped to $15.41 per 1,000 gallons, he said.
Residents said they find outrageous the company’s request to earn up to 10.7% return on its investments in the system. That’s far higher than other U.S. water utilities and Duke Energy, they said.
Citing independent publications used by investors, residents said the U.S. water-supply industry averaged a 5.39% return over the last six quarters and Duke Energy a 3.4% return.
19.7% first-year proposed hike
In a letter to customers in September, the company said it needs to raise rates by 19.7% the first year, 4.99% the second year and 4.65% the third year. Carolina Water Service posted the letter on its website.
The North Carolina Utilities Commission scheduled a public hearing on the company’s request for 7 p.m. Wednesday in courtroom 5350 of the Mecklenburg County Courthouse, 832 E. 4th St. in uptown Charlotte.
Becker said he intends to speak for other residents of the Harbour, while a speaker each will represent The Point and The Farms subdivisions.
‘Pressing need’ to improve water system
In his company’s letter to customers, senior vice president Don Denton blamed the proposed increases largely on “a pressing need to invest more than $110 million” in its water and wastewater systems. Increased service costs also are to blame, he said.
“While we recognize there is never a good time to ask customers to pay more for a product or service, the proposed rate increase is essential to the company’s ability to deliver safe and reliable water and wastewater services,” Denton wrote.
“No one likes to have their rates raised,” Carolina Water Service spokeswoman Deborah Clark told the Observer in a phone interview Tuesday. “But it’s required to do these projects.”
“Costs of everything have gone up,” she added, citing pipes, valves and other equipment.