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Published Saturday, October 16, 2010 in Local

Newnan water, sewer rates will increase in January

By Alex McRae

The Newnan Times-Herald

The Newnan Water, Sewerage and Light Commission has announced a water and sewer rate increase for city customers of Newnan Utilities, effective with the January 2011 billing cycle.

The majority of the increase will be spread over three years for residential customers, and five years for commercial customers, said Newnan Utilities General Manager Dennis McEntire. Revenue from the increase will be used to fund system improvements and repair aging infrastructure.

"Our rates have historically been among the lowest in our region and we work hard to be financially responsible and will continue to hold costs down," McEntire said. "We will continue to find the most cost-effective way of improving our infrastructure to keep up with present and future needs of our customers."

The rate increase followed a system analysis that forecast the need for projects totaling $15 million over the next five years, McEntire said.

"During the past decade of dramatic growth, many of these repairs and upgrades were delayed, as resources were directed toward accommodating the influx of new customers," McEntire said. "Now that the area's growth has diminished, repairs and improvements to insure all customers continue to receive the highest standard of service has become a high priority."

The new rates will continue to comply with the three-tier state water conservation pricing guidelines and include changes to the base rate and annual price adjustments.

Averaged over the next three years, the typical residential customer using 3,500 gallons monthly can expect an increase of $3.46 per month.

Based on current regional pricing, Newnan Utilities' rates will continue to be lower than both Coweta County and the Metro Atlanta area average, said local officials. Even after the residential increases take full effect in 2013, the typical Newnan Utilities' customer's monthly bill of $47.20 will be 12 percent lower than the $53.42 they would currently be paying for comparable Coweta County Water service, according to Newnan Utilities officials.

"Our goal was to find a funding formula for these critical projects that would allow us to maintain our traditionally competitive pricing," McEntire said. "By spreading the rate increase over three to five years, reducing our operating costs, and utilizing existing reserve funds, we found a solution that keeps customer increases minimal without sacrificing quality of service."

The rate increase will help fund replacement of up to 80 miles of breakage-prone clay and galvanized pipe, some of which dates back 100 years. Additional street-level projects include extensive manhole repairs to reduce wastewater treatment costs.

Facility upgrades include state-mandated improvements to the Hershall Norred Water Treatment Plant and the addition of ultra-violet disinfection to insure drinking water safety. Three raw water pumping stations that support reservoir levels will be rehabilitated to replace equipment that is more than 30 years old.

Funding for the projects will come from three sources: revenue from the upcoming rate increase, reductions in operation costs, and existing cash reserves. Recent reduction of Newnan Utilities' operating budget will make a substantial contribution to project funding, officials said, adding that annual costs have already been reduced by $2 million, including a 10 percent reduction in employees through the implementation of an early retirement program.

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10/22/2010