The Public Service Commission tells the water utility to give back $276,000 it collected under an interim rate increase.
By ALEX LEARY
Published October 6, 2004
NEW PORT RICHEY - Aloha Utilities was ordered Tuesday to give back $276,000 it collected from customers under an interim rate increase granted three years ago.
It's the second time the company has had to issue refunds based on the rate increase. Aloha returned about $122,000 last year, contending it could keep the balance.
But the Public Service Commission on Tuesday ruled against the utility, which has been the subject of numerous customer complaints about the smell and appearance of its water.
"If money is taken from customers, they should return it," said Abe Kurian, an Aloha critic who lives in Seven Springs. "Aggravating customers by withholding their refund is not good customer service for any company. You don't need an MBA to know that."
The interim rate increase was approved by the PSC in November 2001 while Aloha petitioned for a 55 percent permanent increase. That effort was ultimately unsuccessful, leading to the April 2002 order to refund interim funds.
Only a portion - $122,000 - was given back to customers initially. Then state Sen. Mike Fasano and others got involved and the matter was again before the PSC, culminating with Tuesday's decision.
No new arguments were accepted at Tuesday's PSC meeting in Tallahassee. Aloha attorney F. Marhsall Deterding attended the hearing but was not allowed to address the commission, the utility said.
Aloha president Steve Watford maintained the refund decision was contrary to the original PSC order and an audit that concluded, he said, the company refunded proper amounts the first time.
Those credits amounted to about $7 per customer, officials said then. It was unclear how much the new refunds would be per customer. Aloha has about 15,000 customers in southwest Pasco.
Fasano, R-New Port Richey, said in a statement that he hoped Aloha would issue new refunds quickly "so that this whole matter can be put to rest."
A larger battle awaits, however. Hundreds of customers have signed petitions asking the PSC to delete them from Aloha's service area. The company, meanwhile, is working on a new treatment system to address water quality issues.
Hearings on both matters are set for early next year.
Alex Leary can be reached in west Pasco at 869-6247, or toll-free at 1-800-333-7505, ext. 6247. His e-mail address is leary@sptimes.com
