About 60 turn out for session on Roats rates

Published 12:00 am Friday, May 6, 2016

An administrative law judge Thursday set a date for Roats Water System to make its case for charging its customers higher rates.

The family-owned water company in March filed rate increases with the Oregon Public Utility Commission that would raise another $442,253 in revenue annually , a 35.21 percent increase, for a total $1.8 million.

Judge Patrick Power set a settlement conference for Roats Water System with PUC staff July 21. The water company wants its request expedited, if possible, to move forward with the $1.4 million purchase of the former Juniper Utility Co. from the city of Bend. If PUC staff in July counter the company request with one Roats can accept, a rate increase could be in place before the end of the year. PUC staffers at a public hearing Thursday night said they have yet to gather and review all the information they need to make that proposal.

Customers pointed out that, under the rate request company President Bill Roats filed in March, their individual bills could rise 70 percent or higher with the combination of the monthly base rate and water-usage charges.

“I don’t want to pay Portland rates,” said Marilyn Lakey, one of about 60 people at the 2½-hour public session with Power, company representatives and PUC staff at Summit High School.

Jim Pease, another Roats Water customer, said his summer water bill would go from $86 a month to $142.

The meeting opened with customers questioning the timing of the rate request, which coincides with the pending acquisition of the former Juniper Utility Co. and its 821 residential water customers and 786 customers in a separate irrigation system. Roats Water System already serves about 1,600 residential customers.

Roats Water customers Thursday said they were surprised by the rate request and thought the company is using the rate increase to fund its purchase of the former Juniper utility from the city of Bend.

Casey Roats, vice president of the company, said he complied with commission regulations on notifying customers. He and his father, the company president, agreed to meet informally with their customers and answer further questions about the proposed rate increase.

Casey Roats said the rate increase and the Juniper purchase are separate. The rate increase is long overdue, he and his father said. If the Juniper purchase falls through, the rate hike is still a necessity. However, acquiring the former Juniper Utility Co. will add more customers that can absorb a share of the rate increase, he said. The irrigation customers would be billed separately.

The City Council agreed April 6 to sell the former Juniper water company to Roats Water System and loan Roats the money to buy it, said Casey Roats, who serves on the City Council but took no part in its action.

— Reporter: 541-617-7815, jditzler@bendbulletin.com