October 30, 2007

Water Rates Hiked

Despite opposition from Parkville’s board of aldermen and more than 50 residents who attended a public hearing in order to speak out against a proposed increase, the Missouri Public Service Commission approved nearly a 21 percent water rate hike for the city.

While Missouri American Water Co. had initially proposed a 25 percent increase, the hike still means that the average water bill in Parkville will rise to nearly $46.36 – an $8 a month increase.

Area residents and elected officials had made their case against the rate hike. Mayor Kathy Dusenbery criticized Missouri American for purchasing a portion of their water from Kansas City (10 percent of Parkville’s treated water comes from the city). David Mason, a former state senate candidate, pointed out that Missouri American gets their water from the Parkville alluvial bed at no cost. Others pointed to Missouri American’s foreign ownership (Missouri American is owned by RWE AG, a German super utility) , calling the hike a “tax on the American people set by Germany.”

Officials from the commission cited Missouri American’s $6.3 million worth of capital improvements in the Parkville area from 2003 to 2006. Statewide, Missouri American has invested almost $200 million in water system improvements from November 2003 to April 2007. The company has been replacing and installing new water lines, meters and hydrants and making improvements at water treatment, pumping and storage facilities to enhance customer service in local communities. Missouri American has also experienced significant increased costs for chemicals, fuel, labor and insurance over the past three years, which it is seeking to recover in its rate filing.