New electric, wastewater rates coming for Houlton Water Company

   HOULTON, Maine — Houlton Water Company (HWC), a municipally owned electric, water and wastewater utility, went out for bids in January 2015 for a new standard offer energy supply. HWC received competitive offers. New electric energy rates become effective April 1 and expire March 31, 2017.
“We are pleased to announce that the new rates are less than 1 percent higher than the previous two-year contract,” said John Clark, president of HWC.
The two-year average for the contract HWC will finish on March 31 is .0685 cents per kwh. The new rate at .07284 cents per kwh effective for another two-year period. The new rate will be slightly higher (.63 percent) beginning April 1 and expiring March 31, 2017.
Customers also received a notice in the mail recently that wastewater rates will also be rising.
“In order to meet the requirements mandated by the Maine DEP, pay our long term debt and continue to provide reliable wastewater service, the HWC will have to increase wastewater rates,” Clark wrote. “We regret having to take this step, but we must if we are to continue to provide reliable service.”
The current rate is $5.08 per hundred cubic feet, while the proposed new rate will be $6.15 per hundred cubic feet per quarter. The change will increase the average residential cost, based on 2,000 cubic feet per quarter, by $6.40 per month (or $25.60 per quarterly bill).
The last wastewater increase was six years ago, Clark said. “A significant portion of the rate increase is to comply with Maine DEP regulations, new accounting regulations, labor requirements and debt payment on new equipment,” Clark stated in the letter to customers. “During the summer of 2014, we were required to borrow $828,000 to replace aging (42 year old) worn out equipment.”
A public hearing to discuss the proposed wastewater increase is scheduled for Tuesday, March 10 at 5 p.m. at HWC’s office located at 21 Bangor St.