Richland County, SC (WLTX) -- Customers of Palmetto Utilities in Richland County reached out to News 19, concerned about a letter they got in the mail in early January.
They received a document informing them their sewer rate is about to go up from $52.10 to $66.62 a month if approved by the South Carolina Public Service Commission (PSC).
That total is separate from the water bill.
Many asked us why is this happening, who voted on this and what can customers do if they live on a fixed income and can't afford it?
We took your questions to Ni Pacolet, the parent company of Palmetto Utilities, and here is what we learned.
Company officials tell us the rate hikes will help reimburse Palmetto Utilities for millions spent in improvements for their Water Treatment System.
"In 2017 is when we went in to file for the rate increase based on the $80 million that we had already invested in making improvements in our Waste Treatment System. That included a number of different things. We expanded our Waste Treatment Plant, we had to build a northern pipeline to take the discharge to the Wateree. There were a number of different things," said Andrena Powell-Baker, Senior Manager of Community Relations & Development for Lockhart Power, a Pacolet Milliken Company.
In 2017, Palmetto Utilities was only allowed to bill customers for a certain amount of money to get reimbursed. That brought the sewer bill to $52.10, the first rate hike in five years, said Powell-Baker.
Now, they're trying to collect the remaining balance. To make it easier on customers, company officials say they're also willing to allow a smaller payment per month over three years instead.
"Some of the expenses we attempted to recover on were not allowed because they were outside of the test year that the PSC allowed," said Powell-Baker. "There is a regulatory test year and your expenses have to occur within that test year."
This rate hike isn't decided by a vote by county or city leaders.
Palmetto Utilities is part of a private company. As a private company, they are regulated by the PSC, and all rate hikes must be approved by the state agency.
The proposed rate hike affects former Palmetto of Richland County or (PRC) and Palmetto Utilities customers in Richland and Kershaw Counties.
Robin Sisco is one of them.
"Even if you did get a letter, the language on there is not designed for your average person," she told us. "For me, initially it was $15 for sewer. Now it's going to be $60."
From $15 a few years ago to $66.62, that's an increase of 344% on a single bill.
Sisco says many of her neighbors live on a fixed income and don't know how they'll be able to afford it. Customers who were not available to speak on-camera expressed similar concerns to News 19.
"It's people that are saying, 'I'm single, I don't have a large income. I'm a limited income person.' There's disabled people, all kinds of just your average people that really can not afford an increase like this, and they can't afford an unfair increase," she said.
Officials with the Public Service Commission meet Wednesday, January 22, to review the application for the rate hike. They will also consider requests for public night hearings on the matter. If you'd like to request a night hearing, you must do so by February 3, 2020.
You can view the docket here. The PSC will also post to their Facebook page should a night hearing be scheduled.
"We understand budgets are tight. We understand this may present a hardship for some of our customers," said Powell-Baker. "There are programs out there for assistance for paying utilities and we certainly refer our customers to those services...We always, always have a sensitivity to that."
If a night hearing is set, customers will have the opportunity to speak before the Public Service Commission to voice their concerns. To learn how, read the second paragraph on this page.
Officials with the Public Service Commission tell News 19, along with speaking at public hearings and filing a Letter of Protest, customers can also file a Petition to Intervene as a party on record. Every person has a right to represent himself/herself, file a testimony and cross-examine a witness. The deadline to file for this is January 21. Learn more by scrolling to Page 2 here.
Senior Managers for the company will be present at three Town Hall meetings to discuss the proposed rate increase:
- Tuesday, January 28, 2020 - North Springs Park Community Center - 1320 Clemson Road - Columbia, SC 29229 - 3:30pm – 5:00pm
- Tuesday, January 28, 2020 - North Springs Park Community Center - 1320 Clemson Road - Columbia, SC 29229 - 6:00pm – 7:30pm
- Wednesday, January 29, 2020 - Lake Carolina Elementary School - 1261 Kelly Mill Road - Blythewood, SC 29016 - 6:00pm – 7:30pm
April 28, Ni Pacolet/Palmetto Utilities will announce its case to the PSC.
If the rate hike is approved, it will show up on customers' bills around early June.