Business sense & water rates

The good news is that the Bargersville Town Council wants more time to study the issue of building a new water treatment plant and raising customer rates 77%. The not so surprising news is that common sense approaches to the issue came from customers, not the utility company masquerading as a town (see this article).

Based on the coverage provided by the Daily Journal, (I was at the 4th District Congressional Debate at the Greenwood Library between Democrat David Sanders and Libertarian John Duncan, the water rate meeting appears to have been more interesting) it appears that with current growth barely above non-existent, building a $20 million facility may not be required at this time. The only time it reaches peak capacity is when it is hot and dry and people water their lawns the rest of the time it operates at about half capacity. The council deserves credit for planning for the future. 

The other question, why should existing customers pay for a service provided to others still has no answer. Ford has never once told me they need more money from me so they can build a Fusion Hybrid to sell to new customers because I own a 1994 Ford Ranger. Somehow businesses make customers pay only for what they purchase.

Resident Mark DeVoe suggest funding the new plant from hook up fees for new customers. If I’m a new customer I pay for the new plant, sounds like a good idea to me. Andy Wiesman pointed out that while his rates as an existing customer were increasing the plan doesn’t provide any increase in new customer hook-up fees. Good point, why should current customers pay for new customers? What kind of business model is that? Oh right, I forgot this is an unregulated municipal utility, not a business. Another resident suggested a tiered rate structure to deter lawn watering in the summer. Now there is an idea, let the market regulate usage. If I want a green lawn I pay a premium.  I see less watering and more brown yards this year, most likely as a result of tight personal finances, charge me even more when I go above average usage, I’ll cut back in good years too.

We need water, no debate. The most efficient way to provide it? Still searching for that solution along with the Bargersville council. I appreciate the fact that the council is listening and still looking for the answer.

No related posts.