Update: State Denies Water-Sewer Rate Increase

Updated to include comment from Carolina Water Service

The S.C. Public Service Commission, which regulates public utilities in the state, has denied a contentious rate increase request by Carolina Water Service, reports WACH-TV.

The utility's statewide customers, a majority of which are in Lexington, would have been on the hook for an 80 percent increase in water rates and a 14 percent rate increase in sewer service, according to the company's rate-request filing. 

CWS has invested approximately $10 million since its last rate increase and was denied recovery of any of those expenditures, the company said in a statement.  In addition, the company added, it was denied operating expense increases of 14% since 2005 (compared to an increase of 35% nationally over that same time period). 

“We have worked very hard over the last several years to successfully manage expenses and improve service. We have invested almost $10MM in the infrastructure, a fact which was not disputed by the Commission, so it is extremely frustrating that we were denied any recovery for that investment whatsoever”, said Lisa Sparrow, President and CEO of Utilities, Inc. 

Numerous legislators, including Republican State Sen. Jake Knotts, of Lexington, had pushed for the commission's denial of the request. Knotts called Thursday's decision a win for consumers, who have complained over the years about poor service from CWS.

"The public was given an opportunity to voice their concerns and complaints, and I am extremely thankful that their voices were heard loud and clear," Knotts said in a statement. "An increase of 80 percent is outrageous, and I am grateful that the PSC came to the conclusion it did."

In response to assertions about poor service, Sparrow sympathized with customers, and said: “We have continued efforts to improve the quality of service given the revenue we receive and we believe that there is more to do. We appreciate that some customers are troubled that we haven’t been able to move faster but it will be difficult to continue to invest even more in the systems when we cannot recover on the investment and progress that we have already made."