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SMALL WATER & SEWER COMPANY VIABILITY

SMALL WATER & SEWER COMPANY VIABILITY. 2010 Mid-America Regulatory Conference. June 7, 2010 Session 8. Shelley Brueggemann Deputy Counsel of Water and Sewer Missouri Public Service Commission. Small Systems Are Not a Dying Breed. Small Water & Sewer Systems Can Be:

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SMALL WATER & SEWER COMPANY VIABILITY

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  1. SMALL WATER & SEWER COMPANY VIABILITY 2010 Mid-America Regulatory Conference June 7, 2010 Session 8 Shelley Brueggemann Deputy Counsel of Water and Sewer Missouri Public Service Commission

  2. Small Systems Are Not a Dying Breed. Small Water & Sewer Systems Can Be: Investor-owned for profit utility companies Municipal or Governmental systems Public Supply Districts 393 RSMo. non-profit water & sewer companies Cooperatives Developer or other operating (but not “for gain”) Homeowner’s Association Other (i.e., usage agreement)

  3. Water & Sewer Companies MO PSC Regulates * Missouri-American Water Co. is the only Missouri large water & sewer company. Note: Some regulated companies have a number of systems.

  4. Missouri’s Regulated Water Company Rates Average Monthly Bill’s Range from $64.29 to $6.64 per month. Compiled by Jim Busch, Water & Sewer Department Manager, Missouri Public Service Commission.

  5. Missouri’s Regulated Sewer Utility Rates Average Monthly Bill’s Range from $ 103.00 to $ 7.94 per month Compiled by Jim Busch, Water & Sewer Department Manager, Missouri Public Service Commission.

  6. Common Small Water & Sewer System Issues Poorly Maintained Books & Records; Complexity of Running a Water or Sewer System: Laws and Regulations involved, Operations and Maintenance of System, Investment, and Financing Issues; Unaware NOT a ‘Normal’ Business

  7. Other Hurdles FacingSmall Water & Sewer Systems: New State & Federal Environmental Regs may require additional investment, increase operating and maintenance expenses; Public Outcry in Economic Environment

  8. Solutions to Help Overcome Hurdles? Education/Training Communication Law changes Rule and Regulation changes Regulatory Practices Consolidation Other

  9. Quality Service and Affordable Rates are Possible Small Water & Sewer Systems operated in a safe and adequate manner with affordable rates do exist. However, many Small Water & Sewer Owners and Operators are on the brink of walking away from the system.

  10. Larger Utilities Acquiring Small Systems Do Not Necessarily Have Lower Rates: Missouri-American Water Company $58.62 (Brunswick) $43.16 (Warren County) Aqua Missouri $64.28 (Lakewood Manor) $62.99 (Spring Valley)

  11. Reasons Why Rates Might Increase When a Small System is Acquired by a Large Utility Aging Facilities Not Maintained Little or No Plant Investment Developer Subsidized System Not being operated as primary business No reserve for infrastructure replacement Arbitrarily Low Rates

  12. NO ONE SIZE FITS ALL FIX Companies or Service Providers, Regulators, Legislators, Stakeholders and the Industry as a Whole Need to Continue to Look and Create Solutions to the Ever Evolving Problems Small Water & Sewer Systems and Operators Face.

  13. Shelley BrueggemannDeputy Counsel Missouri Public Service Commission shelley.brueggemann@psc.mo.gov573-526-7393 THANK YOU. SMALL WATER & SEWER COMPANY VIABILITY

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