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Show Hearing on Summit Park water rate hike is today by DAVE ADLER Record staff writer Summit Park residents will be facing a 100 percent increase in their monthly water bills today if, as expected, the Public Service Commission Com-mission (PSC) imposes the hike at a 10 a.m. public hearing in Salt Lake City, according to Eugene Lambert, director of the Division of Public Utilities. The hearing has been prompted by a request from the Summit Park Co. , the water uistribution company for that area, for a 595 percent increase in its monthly charges to customers. The hearing will be held on the fourth floor of the Heber M. Wells Building, 160 East, Third South. Lambert said that while he doubts the PSC will approve the company's rate hike request, it is likely that it will set an interim increase of 100 percent. "Based on rough assumptions, it is likely that the Commission will approve an interim increase estab- Summit Park to A5 ALdDimitiiinionedl if rqpimii ... Summit Park from A1 lishing the base rate at about $27 or $28 per month," said Lambert who, like other residents of Summit Park, pays approximately $14 in water fees each month. The Division of Public Utilities is charged with the duty of conducting an examination and analysis of rate proposals before recommending a course of action to the PSC. In effect, it assumes the role of an advocate in questioning the basis of rate increases sought by public utilities. Today's meeting, according to Lambert, will be the first in a long series of meetings during which the PSC will examine the rate hike sought by the Summit Park Co. "I expect that the hearing schedule will take us toward the end of July before the audit and investigation can be completed," said Lambert. He said he did not know if the final monthly rate would be higher than the anticipated interim increase, but said, "I hope not. I pay those bills too." Asked if he saw a conflict of interest between his dual roles of Summit Park resident and director of . I the Division of Puhlie Utilities, Lambert said: "I don't seen any more conflict in this case than, say, one involving an increase sought by Utah Power and Light. "Our job is to conduct an analysis of the issues and make a recommendation recommen-dation to the PSC." If approved, the Summit Park request for a 595 percent increase would raise monthly bills from $13.92 to $82.90. The highest rate in the state is $45 a month, according to officials at the Division of Public Utilities. When the Park Record asked Gregory S. Soter, general manager of the Summit Park water company, why it was seeking a rate . increase, he refused to comment. Similarly, he declined comment when asked why the company was seeking a 595 percent increase. "I don't want to comment on these things," said Soter. "We have filed documents with the Public Service Commission and they are a matter of public record." Documents filed with the PSC by the Summit Park Co. reveal that it has been swimming in red ink during the past four years. If the rate increase is not approved, the company states it "may be forced to discontinue providing service to its customers." According to records on file, the company lost $39,562 in the 1981 fiscal year, $11,281 in 1982, $84,307 in 1983 and $144,037 in 1984. The company also showed a $101,635 loss for the nine months ending Jan. 31. It projected a loss of $160,000 for its 1985 fiscal year which ended April 30. Apparently, the rate increase sought by the company is intended to cover the principal and interest on a loan taken by the Summit Park Co. to absorb the losses, according to a source in the Division of Public Utilities. The requested increase may not be the last one sought by the water company. Its application stated the company "experienced extensive water-line freezing this past winter ...the extent of which is not presently present-ly known or determinable. While the company does not have a cost estimate on repairing the lines, its application says, "At the present time, there are not sufficient funds to make those repairs." I |