Customers may get refund on utility rates

Aloha Utilities could be required to refund its customers as much as $270,431 for water and sewer rates paid in 1999.

By BETH GLENN

© St. Petersburg Times, published July 12, 2000

Customers of Aloha Utilities might get a partial refund of last year's water and sewer rates yet.

The state commission that regulates private utilities decided Tuesday to investigate whether Aloha overcharged its customers last year. If the overearnings are substantiated, Aloha could be required to refund customers as much as $270,431.

Staffers with the Florida Public Service Commission had urged their commissioners to investigate whether Aloha, which serves the Aloha Gardens and Seven Springs area, earned too much money last year. A preliminary assessment determined that the "Aloha Gardens water and wastewater systems and the Seven Springs water system may be overearning," according to a report prepared for PSC commissioners.

Those commissioners are expected to review a more thorough report in mid October and issue a decision about overearnings.

The amount of refund, if approved, for each Aloha customer was not included in the PSC staff report released late last month. But dividing the number of customers by the amount of suggested refunds would appear to give the 3,103 water customers in Aloha Gardens a $43.18 refund, the 2,822 wastewater customers in Aloha Gardens a $29.79 refund and the 9,242 water customers in Seven Springs a $5.67 refund.

The Seven Springs wastewater system will not be included in the investigation since Aloha has asked permission to raise rates on those customers.

But Aloha lawyer Marshall Deterding on Tuesday said the refunds were unlikely.

"We sincerely believe that when all is said and done there will be no finding of overearning or excessive rates and in fact just the opposite will be true," Deterding said.

Moreover, he said the commissioners failed to consider that Aloha had to deal with changing conditions and make extensive improvements since filing last year's annual report.

State Rep. Mike Fasano, a Republican from New Port Richey and an outspoken critic of the utility, issued a statement in support of the PSC ruling.

"It's now clear why Aloha utilities has continually fought opening its books for audit," Fasano's statement read. "With Aloha's application for a rate increase pending, it is my hope that this investigation will thoroughly review the fiscal practices of this company."

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