Oak Point denies Midway rate increase
By LAURA CHILDRESS

Following an overwhelming protest by residents regarding a proposed 47-percent water rate increase by Midway Water, the Oak Point City Council rejected the requested increase in a special council meeting Monday.

Mark Zeppa, attorney for Midway Water, which provides water to residents in Crescent Oaks, noted that the increase was being proposed because of upgrades to the system, increased costs, no rate increase in over four years, to bring Midway rates in line with those charged to its parent company's 40,000 Monarch customers and to ensure a 12-percent return to investors.

Under the proposed increase, Midway representatives noted customers should see an increase in their base charge from $26 to $38 and an increase in their usage charge from $2.20 per 1,000 gallons to $3.05 per 1,000 gallons.

Crescent Oaks residents, however, noted that rather than the 47-percent increase Midway had proposed, their bills had increased by as much as 100 percent.

"I'm furious. I'm flat angry," said Crescent Oaks resident Nancy Habina. "I understand a rate increase.

What I don't understand is how this company expects residents to accept a 47-percent average increase.

"We have no fire protection," she added. "Outages are too numerous to count. We're subjected to substandard water. We're paying more for less.” Resident Steve Tidwell noted that despite having a well for all outside water needs, he had seen his average bill rise to $68.61 per month, an increase of 57 percent.

"This is crazy," he said. "It doesn't make any sense.

My dad's bill is $120 a month and it's just him and his wife.

"You're putting this on the backs of a neighborhood that can afford it the least.” Residents added that many of the billing problems could be attributed to meters either not being read or being malfunctioning.

Kerry Long noted that since the new rates went into effect, he had been billed for 6,000 gallons one month, 16,000 the next, then 26,000 gallons the following month. Repeated calls to customer service, however, had little effect.

"I was being billed for 40 percent more water than I was using," he said. "I filled up a 5-gallon bucket and the meter showed 8 gallons.” Resident Connie Hansen said her meter was also malfunctioning, but to the opposite extreme.

"I'm complaining because my bill's not high enough and the rest of you are paying for it," she said.

"I've watched the meter reader kneel down, stand back up and never read the meter. I've literally chased the water guy down.” Calling customer service, Hansen said, yielded no results.

"I had one of the customer service reps tell me I was a fool for complaining because I wasn't being charged enough," she said.

While Midway representatives admitted there have been customer service problems in the past, they claimed a new phone system should alleviate much of the problem.

As for the increase, they noted it was a direct result of improvements.

"We've invested around $400,000 and only have 386 customers to spread the increase across," said Bill Jasura, vice president of parent company Southwest Water.

With 234 letters from residents protesting the increase, new rates being charged on malfunctioning meters and customer service problems, the council unanimously denied the requested increase.

"You have some real issues with meters," said Councilwoman Judith Camp. "I think you need to belly up to the bar and figure out what the problem is.” Fellow Councilman Jim Wohletz noted that until the water meters were fixed, he was against any rate increase.

"I strongly suggest you people get out here and take care of the meters," he said. "This is absolute highway robbery, and it's got to stop.” With the request denied by the council, Zeppa noted Midway will file an appeal with the Texas Commission on Environmental Quality. A preliminary hearing is slated for mid-April, at the same time an existing rate case for cities protesting Monarch increases is held.