June 25, 2008
Sewer rate hike takes full effect
Page 2 of 2
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About 25 percent of the increase goes into a depreciation fund Roller established four years ago when he was named general manager. The fund is used for routine maintenance on the system - upgrading pump stations, fixing manholes and other improvements.

Before that, the board had to borrow money whenever it needed to do maintenance, he said. "No business would ever do something like that. When I came here I said, 'What are we doing?' It's a helluva way to run a business."

The rest of the increase goes toward "operation and maintenance" items - the cost of running the system. Chemical prices are rising, as are the cost of fuel, health care and salaries for employees. Roller also plans to hire several engineers to design improvements to the system.

Many customers probably remember another big rate increase, not all that long ago.

"It went up 64 percent in 2004," Roller said. "The 2004 increase addressed treatment plant issues. We built essentially a new treatment plan. That was by an order by the DEP.

"We're starting to address the collection system issues, which include the long-term combined sewer overflow issues, which in 2005 we presented to the DEP in a long-term control plan.

"That, in 2005 dollars, was a $213 million plan. We've been trying to chip away at that to try to reduce that cost by trying to do some things that are routine maintenance that haven't been routine for 40 years."

Even so, Roller would not predict where rates might go in future years. "You don't know what regulatory issues might be imposed on you. In a year or two or three, the pharmaceutical issue in the water may be imposed on us. I don't know if it will be on the water treatment or the sanitary side.

"That's just an example. Phosphorus and nitrogen could come up first. That's the issue in Chesapeake Bay.

"I don't have a crystal ball. I won't begin to predict what will happen even next year."

Reach Jim Balow at ba...@wvgazette.com or 348-5102.

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