Ascension Water Co. asks rate hike

The Louisiana Public Service Commission on Wednesday will consider rate increases for Ascension Water Co. that would boost a variety of customers’ monthly bills by about 19 percent.

Commission staff and water company officials reached a joint agreement last month on rate increases on residential and commercial customers as well as increases in a variety of other fees, including for fire sprinklers and tappings and turn-ons, commission filings show.

Under the recommended rate increase, the typical residential customer’s monthly bill would rise by $3.75 per month from $19.25 to $23.01, according to a commission audit memo.

Commercial users would see monthly bills rise by $9.42 from $48.57 to $57.99 monthly, the memo says.

Ascension’s last water rate increase was based on the 2006 financial year, though the increase was granted in January 2008, according to a commission report.

Ascension Water, a subsidiary of Baton Rouge Water Co., has 22,702 customers, including 1,152 commercial customers.

In rate filings, the company said it needs the increase to keep up with continued growth in Ascension.

Hays Owen, vice president and secretary of Ascension Water, said the company has spent $18.7 million on improvements since 2006.

“We feel that the request in the stipulated agreement that the staff of Public Service Commission and Ascension Water Company has come to is certainly a fair agreement and a fair rate that Ascension Water Company will be charging in the future if it is approved” at Wednesday’s meeting, Owen said Tuesday.

The commission meeting is scheduled for 9 a.m. at the Granberry Conference Center, 1140 College Drive, Pineville.

The recommended rate increases affect the fee on the initial 2,500 gallons used per month and the rate for each additional 1,000 gallons of use.

If approved, the various increases would boost Ascension Water’s one-year net operating income by $870,847 to $2.25 million, boosting the rate of return from 5.17 percent to 8.396 percent. Those calculations are based on Ascension Water’s finances in 2010, commission audit staff filings say.