UTILITY SEEKS RATE HIKE IN HILLCREST

A number of residents of Hillcrest Manor subdivision have voiced opposition to a proposed water and sewer rate hike by Hillcrest Utilities Co.

The private utilities company has provided water and sewer service to the subdivision along Route K about three miles west of Interstate 55 for more than 20 years.

Hillcrest Utilities Co. of Cape Girardeau was authorized by the Missouri Public Service Commission to operate sewer and water systems in the subdivision in 1974.

The company filed July 29 for an increase in its water and sewer rates under the PSC's small-company rate procedure.

Hillcrest Utilities officials said the company has had only one rate increase since it was founded, that in 1984. The company has experienced an inflationary increase in all expenses incurred, say Morris and Betty Montgomery, owners and operators of the company, in a letter to homeowners of the subdivision.

Hillcrest Utilities, which has 161 meters in the subdivision, is looking at an expenditure of more than $60,000 to install a lift station.

In the request, the company seeks an increase of annual water revenue of approximately $9,600, or 44 percent, and an increase in the annual sewer revenue of about $15,360, or 71 percent.

Utility officials say the company believes the increase is necessary to cover increased costs of maintaining and operating the system to provide safe and adequate service.

The company wants a minimum monthly fee of $5.16, with a commodity charge of $2.65 per 1,000 gallons of use.

Based on a customer using an average of 5,000 gallons per month, the cost would be $5.16 plus commodity fee of $13.25, for a total of $18.41 a month for water. The sewer costs for the same amount would be $25.02, which translates into $43.43 a month for sewage and water.

Customers now are paying a minimum fee of $3.58, with a use charge of $1.84 per 1,000 gallons for water. The current sewer charge is $3.58 per month plus a commodity fee of $9.20. For customers using 5,000 gallons of water, that totals $27.78.

Some homeowners in the development have initiated a petition against the proposed increase and are in the process of acquiring signatures.

The PSC is looking into the request, said PSC spokesman Wes Henderson.

"The overall process takes about five months from the date of request," said Henderson. "We're currently looking at the company's books and records."

Once the PSC process is completed, and based on comments from residents in the utility system, the PSC will make recommendations on a rate of increase and whether a public hearing will be sought. If a nearing is necessary, a time and place will be established.

When the Hillcrest Utilities Co. was founded, the original rates were established at $5 for the first 3,500 gallons and $1 for each additional 1,000 gallons per month. The company sought a $3.75 monthly rate and $1.84 charge per 1,000 gallons of water used in 1984. The PSC approved a rate of $3.58 plus the $1.84 charge per 1,000 gallons.