HWC plans rate hike

By Joseph Cyr
Staff Writer
    HOULTON — Water rates are on the rise in Houlton for the first time in 14 years. The Houlton Water Company announced June 28 that it would be raising its water rates effective Sept. 1 as a way to help offset reduced revenue.
    “Since our last increase in 1998, HWC has looked for ways to streamline the functions of the water department,” said John Clark, presided of Houlton Water. “In the last seven years, we have consolidated the pumping, distribution and billing operations, which has resulted in reducing our staff by four individuals.”
    Clark added the decreased labor costs reduced maintenance and operational expenses.
    “In addition, refinancing outstanding debt reduced our interest expense and retired debt,” he said. “Although we have taken several steps to decrease expenses, the water consumption and revenue has been declining due to a loss of population for the past 12 years. The result is less revenue today than the company received in 1999.”
    Based on an average 2011 consumption of 6,677 cubic feet, the proposed rates will increase the average residential bill $1.75 per month ($5.25 quarterly).
    Clark noted that HWC’s rates were still far below other municipalities. In comparison, water rates for other communities, using 1,200 cubic feet of usage as a guide, were: Madawaska, $89.65; Millinocket, $79.26; Mars Hill, $77.00; Van Buren,  $66.17; Caribou, $66; Lincoln, $56.70; Fort Kent, $45.47; Presque Isle, $42.72; Fort Fairfield, $40.80; Bangor Water District, $39.86; HWC (existing), $30; HWC (increased rate), $33.75.
    “We regret that we have to request a rate increase, but to provide (customers) with a quality product, we must continue to meet our financial obligations,” Clark said. “We appreciate your cooperation and understanding on this matter.”