Hearings before the Public Service Commission regarding the Missouri American Water requested rate increase continue this week in St. Louis, Jefferson City, Branson and Joplin. Consumers Council of Missouri, a non-profit advocacy organization, has major concerns regarding this request to raise water bills for several reasons.
Most significantly, the proposal would result in an increase in the St. Louis metro area of a whopping 45 percent. Some areas of the state, particularly higher density areas, would subsidize the cost of water to other areas through a uniform rate structure. This is of concern particularly for water customers because the cost of water delivery is very variable dependent on density, proximity to water and treatment needed.
In addition to major cost shifting, the water request is based on an estimate of future expenses rather than audited costs, which means that consumers could be overcharged. Rates should be based on actual costs, not guesses. And lastly, it would add a charge that would raise rates when usage declines, a “save more, pay more” model. This is would disincentivize conservation and essentially shift the risk burden from the investor-owned utility company to the individual consumer.
As fixed housing costs, such as utility rates, continue to increase year after year, the cost of living is becoming unbearable for many. We hope the general public with join us at the Public Service Commission hearings this week:
January 29, 12pm —Maryland Heights. City of Maryland Heights, Municipal Court, 1191 Dorsett Road.
January 29, 5pm —Ferguson. Florissant Valley Community College, Center for Workforce Innovation (CWI) Building, Rooms 134/135/136, 3344 Pershall Road.
January 30, 12pm—Arnold. Arnold City Hall, Council Chambers, 2101 Jeffco Boulevard.
January 30, 5pm —St. Louis. University of Missouri-St. Louis, Summit Room, J.C. Penney Building, 8001 Natural Bridge Road.
The Public Service Commission should serve well the public by rejecting this request.
Cara Spencer is the executive director of the Consumers Council of Missouri and the alderwoman of the 20th Ward.
