State Regulatory Relations

2008 Water Policy Forum a Success

The 2008 NAWC Water Policy Forum was held April 20-22. The purpose of the Forum is to share thoughts, particularly information and ideas, that can be used to build common understanding of the issues that affect water companies, the customers they serve and the various regulatory agencies.

Participants in this year’s Forum represented the water industry, state public service commissions, consumer advocates, state drinking water administrators and Wall Street. The forum was moderated by Lila Jaber, presently with Akerman Senterfitt. Ms. Jaber was the former chair of the Florida Public Service Commission. Some of the topics discussed were: current developments in the U.S. EPA Drinking Water Program; best practices to promote capital investment and cost-effective rates; and financing infrastructure replacement.

A summary report of the Forum will be published later this year and will be available on NAWC’s Web site.

NARUC Summer Meeting Registration Opens Soon

The National Association of Regulatory Utility Commissions (NARUC) Summer Committee Meeting will be held July 13-16 in Portland, Oreg., at the Hilton Portland & Executive Tower.

Registration for the meeting will open on May 1, 2008. For more information and to register, please go to: http://summer.narucmeetings.org/index.cfm.

Pennichuck Granted Rate Increase

The Public Utilities Commission of New Hampshire has approved a settlement agreement granting Pennichuck East Utility, Inc. (PEU) an increase in annual operating revenues of $711,656, or 17.19 percent on an overall basis. Order No. 24-840 (April 4, 2008). The settlement rates assign a significantly greater percentage increase to the public fire protection class in accordance with the results of PEU’s most recent cost of service study. Although consideration was given to readjusting hydrant rates over a five-year period, the commission adopted the parties’ proposal to move more quickly: “The objective of gradualism is an established ratemaking principle, but it is countered in this case by the need to reduce and eliminate cross subsidies among rate classes.”

Nebraska Legislature Mandates Fluoridation

The Nebraska legislature has decreed that all cities and towns with populations over 1,000 must fluoridate their public water supplies unless they opt out of this requirement by June 1, 2010. Although most Nebraskans already have fluoridated water, the Omaha World-Herald reports that approximately 64 communities, including the cities of North Platte, Grand Island and Norfolk, neither fluoridate nor have naturally occurring fluoride. The legislative action was a setback for Governor Dave Heineman, whose veto of the fluoride bill was narrowly overridden.

Chloramine Complaint To Go To Hearing

Reversing an Administrative Law Judge’s (ALJ) ruling, the Pennsylvania Public Utility Commission (PUC) has remanded for evidentiary hearings a complaint proceeding brought by individual residential customers who oppose Pennsylvania-American Water Company’s decision to convert two Harrisburg area treatment plants from chlorinated water to chloraminated water. Pickford et al. v. Pennsylvania-American Water Company, Docket No. C-20078029 et al. (March 20, 2008). The ALJ had dismissed the various complaints, concluding that exclusive jurisdiction over the health effects of chloraminated water rested with the Department of Environmental Protection (DEP), which had already issued the necessary permits for the proposed conversion. The PUC disagreed, finding that the matter in question fell within the joint jurisdiction of the commission and the DEP.

Carlsbad Desal Plant Moves Forward

The San Diego Regional Water Quality Control Board has blessed an environmental protection plan for Poseidon Resources’ proposed Carlsbad, Calif., desalination plant. The project, which still requires several additional regulatory approvals, would have the capacity to produce 50 million gallons of drinking water per day at an estimated construction cost of $300 million.