HAMPTON — Obscene, outrageous and preposterous. Those were just a few words used by members of the public to describe a requested 18.3 percent water rate hike by Aquarion Water Company.
More than 50 residents came out to a public hearing Wednesday in Hampton hosted by the state Public Utilities Commission, which has final authority in approving the increase.
"It's just wrong," said Dover Avenue resident Helena Barthell. "It's an obscene amount of an increase they are asking for in the current economic environment. And to add insult to injury and I will just go on record and say I don't like the taste of my water."
John Walsh, vice president of operations for Aquarion, told those in attendance they are committed to providing quality water at a reasonable price.
Aquarion serves nearly 9,000 customers in Hampton, North Hampton and parts of Rye.
Walsh noted the company has made several reductions in their budget to curb costs but "costs continue to rise."
He said the driving factors in the rate hike request are continuing maintenance, improvements to the infrastructure, salaries/benefits and declining water usage, which in turn means less revenue for the company.
If the full 18.3 percent request is approved by the commission, Walsh said the average annual water bill for a single-family residence will rise to approximately $515.60 a year, an increase of $6.76 per month over current rates.
"You still pay much more for other utilities than what you pay for water," Walsh said.
Several residents said the proposed increase is too high, especially with the current state of the economy.
"As a retired person on a fixed income, this is another squeezing of my ability to live anywhere in Hampton," Selectman Mike Pierce said.
Pierce noted the proposed rate increase is on top of other substantial hikes approved in 2000, 2006 and 2009.
Selectmen Chairman Rick Griffin said he hopes the PUC does not just rubber stamp the rate hike.
"In the nine years I have been here as a member of Board of Selectmen, I haven't seen a lot of help from PUC and hope you will be on the side of consumer this time," Griffin said.
Griffin said one of his concerns is that the additional $1 million in revenue the company is seeking, $214,000 is being attributed to water conservation by customers.
"In other words customers are being penalized for saving water," said Griffin.
State Rep. Fred Rice, R-Hampton, noted that Aquarion was the one promoting water conservation and called it a self-imposed penalty.
"It reminds me of the classic story of the kid who killed his parents and then called on the mercy of the court because he's an orphan," said Rice.
Selectman Ben Moore said the company is seeking a rate of return on equity of 10 percent, which under the current economic environment is unreasonable.
Moore said water is not a risky investment and noted the rate of return on a 30-year mortgage is only 3.58 percent.
"They are asking for three times the rate a 30-year mortgage would allow," Moore said.
Several speakers noted the towns are getting whacked twice because in addition to raising water rates, the company is also seeking a 22.5 percent increase in the flat fee associated with use of the fire hydrants.
Bob Landman, the co-chairman of the North Hampton Water Commission, said the town currently pays $1,701 for each of 147 hydrants.
"We are being asked to pay $44,000 more a year for hydrants that we don't even use," said Landman, who noted there was only one structure fire in North Hampton last year.
But not all the comments made at the hearing were negative.
Mary-Louise Woolsey, who serves as a volunteer to the Aquarion Water Customer Advisory Council, said the town is lucky to have a private water company supplying a safe water supply.
Woolsey noted that from 2008 to 2011 Aquarion has invested over $5 million in the three towns, making improvements to the system.
"I don't oppose a rate increase if you judge it to be appropriate," Woolsey said.
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