Rate increase for Biddeford-Saco water treatment plant to be phased over 3 years
Courtesy / Maine Water Co.
A $53 million water treatment plant is being built on South Street in Biddeford, updating one built in 1884.
Higher water rates in the Saco-Biddeford area, to pay for a $53 million drinking water treatment plant now under construction, would amount to about 60 cents a day and would be phased in over three years if a Maine Water Co. request is approved.
The rate increase filing with the Public Utilities Commission includes a "rate smoothing mechanism" that phases the rates in response to feedback from customers, elected officials and municipal leaders, the company said in a news release. The rate hike only applies to Maine Water Co. customers in the Biddeford-Saco division, about 16,200 customers representing 40,000 residents, not to the customers of its other divisions.
The PUC has up to nine months to make a decision, though it could happen sooner. Maine Water will mail a notice to Biddeford-Saco Division customers, explaining their right to participate in the process.
The treatment plant under construction on South Street in Biddeford will serve Saco, Old Orchard Beach and the Pine Point portion of Scarborough, replacing one that's been in service since 1884.
The proposal filed with the PUC calls for yearly increases to the average residential customer of approximately 20 cents a day, or $6 a month each of the next three years. Rick Knowlton, president of Maine Water Co. said that when the rate phase-in is completed in 2023, customers will pay about 1 cent a gallon for water service, which is in line with water utility rates across Maine.
The rate increase is necessary to support the cost of the treatment plant, but the phasing means the cost won't hit water bills all at once, he said. On a percentage basis, the adjustments will affect all customers equally. In percentage terms, the proposed adjustments are a 26.05% increase effective in July, a 20.23% increase effective July 2022, and a 17.12% increase effective July 2023.
Knowlton said the company outlined the rate proposal at recent meetings with city and town councils, and with the legislators who represent the four communities in Augusta, part of the ongoing process of keeping customers affected by the new plant updated.
He said there's strong consensus that a new water treatment plant is needed. “Local leaders recognize that healthy communities need healthy infrastructure, but we also understand that there’s never an ideal time to raise rates," he added.
New plant mitigates flood risk, raises quality
The treatment plant is expected to be completed next spring, replacing one built in 1884 and renovated in 1936. Independent engineering studies concluded that a new treatment plant would be more cost-effective than additional renovation, and strongly recommended that a new one be built outside of the Saco River flood plain to avoid severe flooding that has caused shutdowns several times over the years, the company said in a news release.
The plant is being built on the west side of South Street in Biddeford, high above the flood plan elevation, but close enough to take advantage of existing infrastructure, the release said.
“The existing drinking water facility has served these communities well for 137 years, but it can’t last forever," Knowlton said. "It’s important to realize that there is only one source of water for 40,000 people who expect and deserve safe, reliable water service every day."
The new plant will improve water quality, eliminate the risk of flood, improve system reliability and lower the cost of water production, he said. "Over the past several years, we have studied all options in meticulous detail. This path is the most responsible way to provide service to these communities today and for the next century."
An independent survey company found that customers reported an overall satisfaction index of more than 92% the release said.
“We were pleased by our outstanding customer survey results," Knowlton said. "The data indicate general approval of our approach to investing for the future, while also keeping rates as low as possible. Our customers trust us to deliver high quality water and exceptional service, and they understand the need to replace aging infrastructure in order to do that."
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