TRUMBULL COUNTY Masury Water rate to be reviewed

The relationship between two water companies remains an issue.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
WARREN -- Trumbull County officials are expected to meet next week to determine if the county will appeal the rate increase granted Masury Water Co.
Thursday, the Public Utilities Commission of Ohio granted Masury Water a 23.9 percent increase in its annual revenue.
The actual increase to residential customers is 21 percent to 22 percent and 16 percent to commercial and industrial customers.
The county buys bulk water from the company and resells it to about 3,200 residential, commercial and industrial customers.
The PUCO said Masury Water has two weeks to inform its customers of the increase and the company will determine the effective date of the hike.
Meeting planned: Atty. Richard L. Goodman, a Niles lawyer representing the county in the rate dispute, said Friday that a meeting is being arranged for next week with the county commissioners; Thomas Holloway, county sanitary engineer; and James Brutz, an assistant county prosecutor, who has been working on the case.
Goodman said the PUCO needs to be aware of the issues.
The rate was worked out through stipulation by the PUCO staff, Masury Water and Ohio Consumers' Council.
One of the justifications by the PUCO for approval was that Masury Water has an income that is $74,117 annually, or 5.4 percent, in the red.
The rate hike will increase the water company's revenue by $324,725 annually, a commission spokeswoman said.
Holloway, county sanitary engineer, had argued that the consumers' council wasn't representing consumers when it agreed to stipulate to the rate increase.
Goodman filed a brief objecting to it. He wanted the PUCO to defer a decision and then reject it.
The objection: In his brief, Goodman alleged that Masury Water is a shell corporation of Consumers Pennsylvania Water Co., Shenango Valley Division.
He charged that Masury Water has no treatment facilities, employees, vehicles or offices in Ohio and buys water from Consumers Pennsylvania.
The PUCO said in a press release that Masury Water has distribution lines, storage facilities and booster pumps.
Goodman asserted that because of the relationship between the two companies, Masury Water does not challenge rates charged it by its parent company.
Masury Water has maintained that it would be less costly if there were only one corporation, but two are required with one being regulated in Ohio and the other in Pennsylvania.
Goodman said Friday there are three of four issues the county could take up if commissioners decide to make application for a rehearing, or appeal.
One of them, he explained, is the issue of the relationship between Masury Water and Consumers Pennsylvania.