Subdivision residents find little good news over higher water rates

Tuesday’s public meeting held little to no good news for residents of Hillcrest Manor subdivision, whose hiked water and sewer rates appear likely to stand.

When the new rates kick in Aug. 11, the roughly $150 average utility bill will put the 242-customer community in Cape Girardeau County among the highest-charged in Missouri.

James Owen, as acting director of the Office of Public Counsel, led the team that represented ratepayers before the Missouri Public Service Commission. Much of the public meeting was to help ratepayers understand why the commission ruled against them in favor of utility provider Hillcrest Utility Operating Co., which is owned by Central States Water Resources Inc. of St. Ann, Missouri.

After purchasing the utility from Brandco Investments LLC in 2015, the new owners put $1.2 million into renovating the neglected system. The residents had not seen a rate increase since 1989, but the system was failing, and boil orders were common, including E. coli contamination.

Part of the rate hike, according to Hillcrest Utility, is to pay for the system renovations, among other costs. The Missouri Public Service Commission ruling backed them, despite several disputed issues, Owen said.

In title and experience, the utility sought designations that would mean higher payroll rates for its operators. The difference between calling a position a “CEO” instead of a “general operations manager” is measured in dollars of hourly pay. Although commission staff recommended using the lower rates, regulators sided with Hillcrest Utility.

The commission ruled against the utility when it requested nearly $3,000 in property-tax credit, approving just over $300 instead.

Hillcrest Utility also claimed its expenses around tax time would be more than $19,000 in accounting and preparation fees. Staff suggested it would be closer to $326, and the commission agreed.

But fine-print regulatory victories seemed to mean little to residents — many of whom say they simply don’t have an extra $100 or more at the end of each month.

Some said they would consider moving, but questioned whether anyone would buy their homes with a $40 and $83 monthly minimums for water and sewer, respectively.

Plus, boil orders haven’t stopped, even after the renovations.

Owen said although a motion to reconsider has been filed, it is unlikely to succeed.

“That just does not happen very often,” he said.

The next step, which his office intends to take if necessary, would be an appeal. But that’s a long shot, he said.

Filing an appeal will not stop the rate hikes from taking effect.

Owen urged the residents to report any problems they might experience with service, but until the appeal process is done, that’s about all they can do.

tgraef@semissourian.com

(573) 388-3627

Pertinent address:

Hillcrest Manor subdivision, Route K, Cape Girardeau County, Mo.