Higher Water Bills Surprise Residents
Rate hikes kick in at the same time as Virginia American Water and Alexandria Renew Enterprises roll out new, separated bills.
If your most recent water bill seemed higher than normal, it was. Did you notice that the cost of treating your wastewater went up too?
This fall, for the first time, Alexandria residents and businesses received separate bills for their water and the cost of cleaning it.
Virginia American Water, which supplies water to homes and businesses in the city and beyond, unexpectedly announced last year it would no longer provide third-party billing services. So, the wastewater treatment costs formerly included on the quarterly bills, were sent separately by Alexandria Renew Enterprises.
The company changed its name from the Alexandria Sanitation Authority.
The separate bills started appearing in mailboxes in October and immediately alarmed some customers.
"Our bill was $40 higher than last quarter—and we don't water our lawn," wrote Del Ray resident Karen Johnson on a neighborhood listserv. She exchanged messages with others who were confused by the new bills and curious about the apparent rate hikes. One said she nearly threw away the new bill from Alexandria Renew because she didn't recognize it.
It turns out that the separation of the two bills occurred in the same cycle as increased rates from both companies took effect.
"It was the perfect storm," said Karen Pallansch, the CEO of Alexandria Renew.
Her company approved a new rate structure two years ago that was first reflected on bills in October 2011. The plan included a second increase that took effect Oct. 1 of this year and appears as a pro-rated charge on the new bills. The increase means that the account services charge for all customers will rise from $6.02 to $6.78 and the Bay Protection charge for residential customers will climb from $16.77 to $25.15. Commercial customers pay more. The charge to treat wastewater remains unchanged.
The spike in the Bay Protection charge is the result of more stringent regulations that call for removing more of the contaminants from the wastewater, Pallansch said.
"That takes a lot of infrastructure and a lot of money," she said.
Water bills from Virginia American Water reflect a 12.2 percent rate increase that took effect July 12. The company filed for the rate increase with the Virginia State Corporation Commission Feb. 6. It requested the additional revenue to pay for infrastructure improvements and the cost of complying with increased regulations. A public hearing on the rate increase, which was opposed by the Alexandria City Council, was held in Richmond Sept. 25.
The commission has not yet ruled on the rate increase. If the commission rejects it, customers will be credited for the extra charges, said Mary-Jane Atwater, a spokeswoman for Virginia American Water.
For the quickest updates, "like" Del Ray Patch on Facebook and follow @delraypatch on Twitter. Interested in getting Del Ray Patch directly into your inbox each morning? Learn more about our daily newsletter.
McBrinn
6:48 am on Thursday, November 29, 2012
"It was the perfect storm," said Karen Pallansch, the CEO of Alexandria Renew. "
If by 'perfect storm' Pallansch means an obvious cash grab and price gouge, then, yes it was.
What an odd remark to make about something so blatant.
Gail G
7:18 am on Thursday, November 29, 2012
"Her company approved a new rate structure two years ago that was first reflected on bills in October 2011." And...there you have the problem..."her company" approved the new rate structure. Was there any input from city council, residents, businesses, etc?
Leigh Foley
7:32 am on Thursday, November 29, 2012
Thanks for writing about this Dana; I was curious about why the new bill was so steep. How do we weigh in with the Commission to encourage them to reject this increase?
McBrinn
8:17 am on Thursday, November 29, 2012
"The spike in the Bay Protection charge is the result of more stringent regulations that call for removing more of the contaminants from the wastewater,"
Drew, would you please follow up with her regarding this? I'd like to know exactly what contaminants they claim they are now removing that they weren't in the past. I'd also like to know the process in which they perform their removal. It's my understanding that the vast majority of contaminants making their way into the bay come via rural areas and not urban centers. Are we footing the bill for Chicken farms in Maryland?
I'm fine to pay more for a cleaner Bay but I suspect in this instance we're paying more for Pallanch's salary.
For starters I haven't heard one word about the treatment plant receiving any upgrades. That would imply that, say, two years ago they had the ability to better treating the wastewater but chose not to?
Something stinks here and it aint the brown water.
vineeta anand
10:12 am on Thursday, November 29, 2012
Rob Krupicka, as a former City Council member and now our new delegate, I hope you will soundly reject American Water's 12.2% rate increase. The company's CEO pocketed a 120% increase in pay in 2011, and we are paying for it. Jeffry Sterba's total compensation shot up to $3.1 million in 2011 from $1.4 million in 2010. Here's a link to the company's proxy statement, which companies must file with the Securities and Exchange Commission, and which discloses the pay for the top five officials. He joined the company as CEO and president in 2010, and got a $200,000 signing bonus. And then, boom, his salary more than doubled the following year. Nice work if you can get it. I'm not paying for it.
http://www.sec.gov/Archives/edgar/data/1410636/000119312512142940/d297253ddef14a.htm#tx297253_22
Drew Hansen
12:09 pm on Thursday, November 29, 2012
The specific contaminants are nitrogen and phosphorous. They're not new contaminants, but the regulations continue to get more strict.
McBrinn
10:26 am on Thursday, November 29, 2012
Wow. Do us right Rob.
Jane Malik
11:05 am on Thursday, November 29, 2012
It's not unexpected that costs will rise, but quarterly billing should be abandonned for monthly billing by both companies so as to make it easier for customers to pay those bills.
M Wilker
2:51 pm on Monday, December 3, 2012
Jane, I have been paying on a monthly budget with American Water for more than a decade. When I called Alexandria Renew, they refused to divide my bill into 3 monthly payments. I called American Water and they gladly accepted my divided payments. Alexandria Renew is not being customer friendly with its own residents.
Trey
11:59 am on Thursday, November 29, 2012
"The commission has not yet ruled on the rate increase. If the commission rejects it, customers will be credited for the extra charges, said Mary-Jane Atwater, a spokeswoman for Virginia American Water."
Here's an idea: How about we hold on to our money until you get approval for the rate increase?
McBrinn
12:07 pm on Thursday, November 29, 2012
Failing that, what sort of interest are they going to pay on these illegally collected fees? I write my bills from an interest-paying money market account. I'm losing out on rightful earnings each day that they're holding money they aren't entitled to.
McBrinn
12:00 pm on Thursday, November 29, 2012
"It's not unexpected that costs will rise"
It was unexpected by at least 4 of the 5 posters in this thread.
Tom
2:40 pm on Thursday, November 29, 2012
Frankly, I think it's pretty incredible that fresh clean water can be delivered to my house and sanitary waste can be removed from my house for what's a pretty reasonable rate, when you think about it. Most people's cable bills are considerably more than the water bill, and all that's providing are commercials.
Jim Lovo
3:28 pm on Thursday, November 29, 2012
Agree -- but it also is pretty incredible to pay Jeffry Sterba's total compensation that shot up to $3.1 million in 2011 from $1.4 million in 2010. These processes of municipal water treatment are demanding and involve some complex chemistry, mechanics, public relations, and leadership but the individual who does this for the government at the Washington Aquaduct Plant -- which is much larger, more complex and high viz -- earns about $160,000 per year -- with no $200,000 signing bonuses.
McBrinn
3:09 pm on Thursday, November 29, 2012
Looks like we have our first RENEW troll checking in...
Tom
3:26 pm on Thursday, November 29, 2012
Not a troll, but I spend about $800 annually on fresh water, and that seems like a deal to me, compared to the ~$1400 annually I'm spending on cable/internet. From a totally unbiased (read: not pissed at the new higher rate) perspective, I think you have to admit that being able to drink, cook, bathe and water our lawns for less than a grand a year is pretty remarkable. I guess the real question is (and I know this really makes me sound like a Company man, though I promise I'm not): how much would you pay for this service, when the alternative is, what, a well and an outhouse? My guess is that you'd give up electricity before you'd give up fresh water. This isn't to say that I like that my bills are going up, but even at a higher rate, I still think fresh water and sanitary services are a steal.
Gail G
3:23 pm on Thursday, November 29, 2012
Lawd have mercy. RENEW needs a better communications team.
McBrinn
4:01 pm on Thursday, November 29, 2012
Tom- I own every piece of plumbing infrastructure from the curb into my house. Renew isn't providing me with pipes, water heaters, tubs, sinks, faucets, shower stalls, stoves, kettles, toilets or any other piece of equipment that lets me 'use' water. You and I've paid for that and it shouldn't factor into what sort of bargain you think you're getting from the folks that provide only the water and wastewater services. The alternative (outhouse) would be miserable for half the year but fine the rest and I've lived on wells for about 6 of my 40 + years. You wouldn't know any diffferent unless there was a record drought.
That the CEO and VP can DOUBLE their compensation packages in one year ought to clue you in that you're getting ripped off.
All we're asking is why the huge increase in cost when their isn't an increase in service.
Tom
4:26 pm on Thursday, November 29, 2012
Don't disagree with a word you wrote (except about the outhouse being tolerable for half the year), and if the comp numbers Jim cites above are correct, then I agree it's unreasonable. I was just admiring American (not American Water's) progress.
vineeta anand
10:39 am on Friday, November 30, 2012
There seems to be some confusion about the executive compensation numbers I posted. They are for the CEO of American Water, the parent company of Virginia American Water. Not Alexandria Renew. I was griping about the 12.2% rate hike sought by the water company. Not the waste water treatment company, of which I know nothing. American Waterworks, the parent company based in Voorhees, N.J., has terrible work practices, and the National Labor Relations Board in October ruled against the company for illegally cutting workers' benefits at the same time it has sought rate hikes in various states. See this link for an article about the company's troubles with the NLRB:
http://www.phillyburbs.com/news/local/burlington_county_times_news/judge-rules-against-american-water-over-benefits/article_c7436c6d-3e08-50ff-9ea0-ba5f320cdd1e.html
I urge Virginia state lawmakers to soundly reject the 12.2% rate hike sought by the company.
Sylvia Alimena
5:12 pm on Wednesday, January 2, 2013
The problem that I have is that we are paying for what could be considered "user fees" for our water. The fees that come from Alexandria Renew each quarter are about 150% higher than the actual water. That's just wrong. These high rates also put a burden on lower income families. You can't get water in Alexandria unless you pay a minimum of $500 per year. That's just too high and it's morally wrong.