News Release
November 6, 2007
KCC to Hold Public Hearing on Suburban Water Company's Rate Increase Request
The Kansas Corporation Commission will hold a public hearing to provide Suburban Water Company customers an opportunity to testify before the Commission concerning the company's rate increase request of $274,954. The public hearing is scheduled for 7:00 p.m., Thursday, November 8, 2007, at Glenwood Ridge Elementary School, 17550 157th Terrace, Bonner Springs, Kansas.
The public hearing will consist of two parts. First, there will be a question and answer period allowing customers to ask Suburban Water representatives and the Commission staff questions pertaining to the case. In the second part of the hearing, customers will have the opportunity to make their statements to the Commission.
On May 31, 2007, Suburban Water filed an application with the Commission requesting a $274,954 increase in rates for water service representing an annual revenue increase of approximately 37 percent.
Suburban Water is a privately owned public water utility serving approximately 1,370 residential and small commercial customers in Leavenworth County, Kansas, with offices located Basehor, Kansas.
In its application, Suburban Water stated the $274,954 increase is necessary to recover the depreciation expense and interest on the recent debt it incurred to fund a new $1.2 million water storage tank and related facilities. Suburban Water is also seeking to recover increases in the normal cost of service items such as operating and maintenance expenses, and payroll and employee benefit expenses which have increased since its last rate increase of $60,000 in 2005, based on 2003 costs.
Comparisons of the current and proposed rates are as follows:
| CURRENT RATE | PROPOSED RATE | |
|---|---|---|
| Minimum Bill (1,000 Gallons) | $ 13.00 | $ 20.00 |
| Cost per 1,000 Gallons used over initial 1,000 gallons | 5.63 | 7.33 |
The chart below is a comparison of the current cost and proposed cost for a typical customer using 7,000 gallons per month:
| CURRENT COST | PROPOSED COST | INCREASE | |
|---|---|---|---|
| Proposed Cost per Month for 7,000 Gallons | |||
| First 1,000 Gallons | $ 13.00 | $ 20.00 | $ 7.00 |
| Next 6,000 Gallons | 33.78 | 43.98 | 10.20 |
| Total Cost of Water per Month | 46.78 | 63.98 | 17.20 |
Customers may also submit comments to the Commission through November 21, 2007. Comments or questions should reference Docket No. 07-SUBW-1352-RTS and be sent to the Kansas Corporation Commission, Office of Public Affairs and Consumer Protection, 1500 S.W. Arrowhead Road, Topeka, Kansas 66604-4027 or emailed to . Customers may also call 1-800-662-0027.
For more information about the rate increase request or hearing, contact the Commission's Office of Public Affairs and Consumer Protection at 1-800-662-0027. Under the Americans With Disabilities Act, any person requiring special accommodations at the hearing site must notify the Commission prior to the scheduled hearing date.
Docket No. 07-SUBW-1352-RTS