Monday, December 18, 2006

Pre-filed Bill S. 0085 municipal utilities

This bill will requires any rate increase that a municipal utility would like to impose on customers outside of the municipality's corporate limits must be approved by the Public Service Commission. This would put all utilities operated by municipalities serving customers outside the boundaries under the jurisdiction of the PSC.

In '04 I cosponsored legislation that would guarantee equal rates for all customers. After nearly 2 years of negotiations with city representatives, I decided to try a different angle.

In my district, I have constituents that purchase water from the City of Anderson that live outside the city limits. They are charged higher rates than the residents living within the city limits. Some cry “taxation without representation”. Are these rates justifiable? That’s debatable, but the PSC has a proven record of fairness.

This legislation would apply to all utilities owned by municipalities serving customers outside of the political boundary.

The attached documents reveal a promise made that was not kept. Back in 2001, when the city was trying to purchase the system from Duke power, they gave us the promise that there would be no dual rates.