Jul 10, 2013 3 min read

CARMICHAELS – The last time Carmichaels Municipal Authority adjusted its rates 19 years ago, customers saw a decrease in their monthly bills, but with the authority’s water system now in need of upgrades, the authority board voted Monday to raise rates by $2 for each 1,000 gallons consumed.

The action, approved unanimously, will increase the rate authority customers pay for water each month from $6 for each 1,000 gallons consumed to $8 for each 1,000 gallons consumed.

The average customer, who uses about 4,000 gallons a month, will see his or her water bill increase from $24 to $32.

The rate increase takes effect in August and will be included in the customers’ September bills.

The rate increase is needed to help pay for upgrades to the treatment system recommended by a study completed by its engineer earlier this year on preventing the formation of trihalomethane in its system, according to Lloyd Richard, authority manager.

The authority commissioned the study after it failed to meet the safe water drinking standards for THM in late 2010 and early 2011.

The study recommended operational changes, many of which have been implemented, as well as capital improvements including the installation of aeration systems on the authority’s water tanks, new electrical controls at the treatment plant and installation of equipment to chlorinate treated water after it leaves the storage tanks.

The engineer has estimated the cost of the improvements at $500,000 to $700,000, Richard said.

The authority also completed 2012 with a net income loss, according to the authority’s financial statement. The authority last year had operating revenue of $643,860 and operating expenses of $737,867 for a loss of $93,007, the statement said.

Richard said the loss last year stemmed in part from engineering fees and the study that was completed related to the authority’s THM issue. However, during the years the authority’s normal costs have also increased for items such as chemicals, electricity and labor.

The authority last increased rates 21 years ago, in 1992, when it had to close its treatment plant for repairs and for two years purchased water from Southwestern Pennsylvania Water Authority.

In 1992, the authority had a rate schedule under which customers paid $6.25 for the first 1,000 gallons; $3.15 for each 1,000 gallons for the next 4,000 gallons; and $2.85 for each subsequent 1,000 gallons. It raised the rates that year to $10.60 for the first 1,000 gallons and $7.40 for each additional 1,000 gallons.

After completing plant renovations in 1994, the authority dropped its rates to a flat $6 for each 1,000 consumed.

The authority engineer is currently preparing permit applications for the improvements to the system.

Richard said the authority has scheduled a meeting with state Rep. Pam Snyder and representatives of the Pennsylvania Infrastructure and Investment Authority to discuss grants and low-interest loans for the project.

The authority also continues to explore its eligibility for contributions from municipalities that receive Act 13 natural gas impact fee revenue.