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PUC grants Warwick intervener status in water rate case

01:00 AM EDT on Thursday, July 3, 2008

By Barbara Polichetti

Journal Staff Writer

WARWICK — The city has been granted legal standing in fact-finding and testimony as the Public Utilities Commission, in the coming months, weighs the Kent County Water Authority’s request for a 35 percent rate increase.

City officials announced last week that the PUC had granted the motion for intervener status that was filed at the end of May after the City Council objected to the proposed rate hike and said it wanted the city to have a say in the process.

The motion was filed by City Solicitor Peter Ruggiero and Lincoln Lennon, lawyer for the Warwick City Council.

Timothy J. Brown, the Water Authority’s general manager, said yesterday that the PUC’s recognition of Warwick as an intervener will allow it to request data, question witnesses and even present its own witnesses.

Thomas F. Kogut, a PUC spokesman, said that as an intervener, Warwick “has standing in the case and has the right to take part in the information gathering process.”

The PUC has scheduled a hearing session for 7 p.m. next Thursday in its offices at 89 Jefferson Boulevard in Warwick. An evidentiary hearing, including expert testimony, will be held at the end of September, Kogut said.

Citing a drop in revenues and the need to maintain its infrastructure, the Kent County Water Authority requested the rate increase in April. It has submitted alternative proposals to the PUC — one for a flat-rate increase and the other for a variable seasonal rate.

According to the Water Authority, the flat increase would boost the price that customers pay per 100 cubic feet of water from $3.79 to $5.14. That increase would cost customers about $13 more per month, officials have estimated.

The proposed variable rate increase would have customers pay $5.30 per 100 cubic feet — 750 gallons — they use in July, August and September. The rate would be $5.01 per 750 gallons for the rest of the year.

The City Council has gone on record as opposing the rate increase for a number of reasons. Council members said it would be one more burden on taxpayers at a time when most people are struggling with high gasoline costs and other increases in their regular expenses.

A 35 percent increase “during these tough economic times is just too much,” Councilman Steve Merolla said yesterday. “Also, as far as I’m concerned, the residents of Warwick should not be paying for the expansion of water lines in West Warwick, Coventry and other communities serviced by the water authority.

Council President Joseph Solomon said the council feels it is important that it intervene on residents’ behalf, even though the majority of the city is served by a city agency, the Water Division, whose rates that are about half those of the Kent County Water Authority.

According to Mayor Scott Avedisian, about 20 percent of the city is served by the Water Authority — mostly areas near the southern and western borders.

“My main concern is the inequity,” Avedisian said. “The Warwick [agency’s] rates have been stable, but now we could have a small portion of residents having to pay much higher rates.”

Joseph E. Gallucci is Warwick’s representative on the five-member Kent County Water Authority board, which also includes two members from West Warwick, one from Coventry and one from East Greenwich.

As a member of the board, Gallucci said, he understands the need for the rate increase, but as a representative of Warwick he voted against seeking it. He said that one of the only ways to fairly address water usage issues is on a statewide basis with an emphasis on conservation measures implemented equitably by all water agencies.

bpoliche@projo.com