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Louisa Water Authority looking to increase water rates

Posted on Friday, May 30, 2014 at 9:00 am

The Louisa County Water Authority proposes to increase the cost of water sold to the towns of Louisa and Mineral. The town  of Louisa decided during it’s May 20 council meeting to pass the proposed increase on to its customers, according to town manager Brian Marks.

“The town council decided last year that they would not raise rates if at all possible until the water system was in compliance with the disinfection byproducts regulations,” Marks said. “In July 2013, they did not increase rates, although the water system had to be subsidized by the general fund.”

During the council meeting, Marks advised that the increase to Louisa’s water customers would be $7.30 if the proposed rates are approved. Each council agreed not to add an increase to the cost for the town’s overhead and costs to distribute the water. Had the town added their cost, Marks said, rate payers would have seen nearly a $10 per month increase just in water services, not to mention sewer services.

In giving some background on the water rates, Marks said a 15-year buy-sell agreement between the water authority and the town ended this year. The agreement had set rates and allowed for incremental rate increases based on the cost to produce and the consumer price index.

The town is essentially renewing the agreement with the water authority, but adding new terms and subtracting old language that is no longer applicable, according to Marks.

“When that agreement ends, the LCWA is allowed to charge basically what they want for the water,” Marks said. “As long as it meets the fair and reasonable standard.”

To read the entire story, see the May 29 edition of The Central Virginian.

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