Martin County water customers will have some of the highest bills in Kentucky

A Martin County resident will now pay almost $70 a month for their water bill after Kentucky’s Public Service Commission approved a rate increase for the water district Tuesday.

Less than a year ago, a water district customer using 4,000 gallons of water per month, which is considered typical, had a $50.18 bill.

Martin County Water District Customers will see a change on their bills beginning April 1.

Water district representatives told the commission during a hearing in September the requested rate hike, $56.04 for 4,000 gallons a month, would allow the district to break even. The commission approved this rate last summer as an emergency rate increase.

Craig Miller, division manager at Alliance Water Resources, said he was surprised the Public Service Commission approved a rate double of what the district asked for, and the district only requested enough to be able to break even. Martin County Water District’s typical customer now will pay $69.73 for their monthly bill.

According to data from September, three water districts charged a typical customer more than $60 for their monthly bills — Crittenden-Livingston at $67, North Hopkins at $65.52 and Rattlesnake Ridge at $62.52.

Bills were already high for Martin County customers. The water district had the highest minimum bill in the state of $37.32 for a usage of 2,000 gallons or less a month. That rate is now $41.42 a month. Martin County has a poverty rate of 34 percent, compared to 16% statewide.

“The customers are being asked to pay 85 percent more than they did in 2017 when we started this fight for a water system they still don’t have faith in,” Martin County Concerned Citizens President Nina McCoy said.

During the rate case hearing, intervener Martin County Concerned Citizens tried to address the affordability problem. They argued when someone cannot pay their bill and are disconnected, the district loses a customer and revenue.

Mary Cromer, deputy director at Appalachian Citizen Law Center, proposed “creative solutions,” one of which would address the water district’s unaffordability/uncollectibility problem. A low-income and low-use customer would be able to pay a minimum residential rate that is half the current minimum bill. The low-use customer would be customers that use 1,000 or less gallons per month.

One-quarter to one-third of Martin County Water District customers are charged the minimum bill each month. The average use for a minimum bill customer was about 1,000 gallons, but these customers are charged for 2,000 gallons of use.

Roger Colton, an expert on low-income utility issues, testified during the commission’s hearing that lower income customers generally have lower water usage. In Martin County, it typically is an older customer in a one-person household.

In a brief submitted by Cromer, she stated Martin County Water District has significant problems collecting its bills because the rates are unaffordable for many of MCWD’s customers. The uncollectibility of so many of MCWD’s water bills leads to significant costs for the district, she stated.

Anthony Sneed, vice president and director of operations at Alliance, said at the PSC hearing that the Martin County Water Board would champion any effort to help customers afford the rates.

The water district directs customers who are having difficulties paying their bills to assistance organizations like Big Sandy Area Community Action Program. The district also sets up payment plans with customers who are subjected to disconnect after two months of nonpayment.

In the order approving the district’s rate increase, it stated “the Commission notes that affordability and improved customer service continue to be issues that must be addressed as part of the rehabilitation of Martin District. This rate increase is part of a larger process to put Martin District in a position to provide better service at more affordable rates…”

In a concurring opinion Vice Chairman Amy Cubbage wrote without the cost of service study, “it is impossible to fully assess the viability of reducing the minimum charge to 1,000 gallons.

The Public Service Commission requested the water district to do a cost of service study, which determines how much it costs to serve each rate class. The district will need to submit the study by the end of 2023.

Cromer said the concerned citizen group will continue to focus on customer assistance money. She is already discouraged the new Low Income Household Water Assistance Program’s funding is likely to run out.

“Affordability is going to continue to be a huge problem,” she said.

This story was originally published February 16, 2022 at 11:09 AM.