Supervisors grill Great River rep over expensive water rates, poor service for Morgantown customers
Published 8:14 pm Monday, October 21, 2024
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NATCHEZ — Morgantown residents who are Great River customers packed the Adams County Board of Supervisors meeting Monday morning, hoping to understand why they pay so much for water.
Unfortunately, their hope of paying lower rates sometime soon was quickly dashed after hearing from Aaron Silas, director of regulatory operations for Great River’s parent company, Central States Water Resources, based in St. Louis.
The approximately 300 residents who get their water from Great River pay a flat fee of $107.99 per month, regardless of their water usage. Residents said that many in the neighborhood are senior citizens who live on a fixed income.
Great River, which owns the water distribution system — basically the pipes leading to the homes in the neighborhood — buys water from Natchez Water Works and resells it to the Morgantown customers.
Great River bought Oakland Water Works, owned by David Huber of Huber Construction Co., in 2021. Since that time, the cost of water has increased to Great River’s Natchez customers from $51.40 to $107.99
“When Great River took over, we were paying $51.40 a month for water. After two months, we received a letter telling us they were raising our rates to $62.62. Then, after two months, we received another letter telling us they were raising our rates to $78. They have raised it five more times until it got to $107.99,” said George Dixon, who said he has owned his home on Brookfield Street since 2020.
In addition to paying the flat rate of water, which is approximately double what other residents in Adams County average in paying for water, residents complained about poor water pressure and poor water quality. Several residents said they have multiple monthly boil water notices necessitated by low water pressure. And company officials have said they do not bill based on usage as water meters are not considered reliable or up to standard.
District 4 Supervisor Ricky Gray noted that Great River is acting as the middleman, purchasing water from Natchez Water Works, adding an additional charge, and charging its Morgantown customers much more than others pay for water in this area.
“It seems to me we need to cut out the middleman, and y’all are the middleman,” Gray said to Great River’s Silas.
District 2 Supervisor and Board President Kevin Wilson asked why Great River, since owning the water system for more than two years, has not been able to correct its water meter problem.
“Whenever we enter into a state, what we focus on first is the treatment plants, making sure people are getting safe, healthy, reliable water,” Silas said. He said addressing the distribution system and water meters typically comes in years two or three after Great River buys a water utility.
Wilson pointed out that Great River does not have a treatment plant in its Morgantown system.
“If you look around this room, I hate to use the term elderly, but they are on fixed incomes, and you are charging them flat rate and everybody gets the same rate. Some of these people probably don’t use half of the water you would allow them to use if it was on a regular rate. And pardon the term, but they are getting hosed and I think they are getting tired of it,” Wilson said. “It doesn’t seem fair at all. I don’t blame these people for being angry. They have been here several times and this has got our blood pressure up.”
District 5 Supervisor Warren Gaines said some of the 300 residents faced expensive repairs caused when a valve failed earlier this year.
“The high water pressure caused a lot of people busted pipes and caused a lot of hot water heaters to go out, things like that. So, my question is, why does a customer have to pay for a failure by Great River?” he asked.
Silas said customers can be reimbursed for those expenses. However, customers in the audience balked at his answer, saying customer service does not answer phone calls or respond to emails.
Wilson asked if Great River would sell its water system in Natchez. Silas said selling the system is an option.
Public Service Commissioner Wayne Carr, who took office in January and represents the state’s southern district, attended Monday’s meeting and said he sympathizes with residents.
Carr said the previous Public Service Commission, all of whose members were voted out of office in the last election, passed a regulation allowing Great River to raise its rates to $107.99 in the interim before final approval of the rate increase passed the commission.
Carr said Great River has been on a buying spree for water systems and has added 20,000 customers in Mississippi in the last several years.
“We are building a case to go back and get these rates reduced. I can’t tell you when they will be reduced, and I’m sorry this is happening to you,” he said.
The Public Service Commission has set a public hearing for Nov. 20 at 10 a.m. in the Wofford Building in Jackson and invited the Natchez Great River customers to attend and participate in that hearing.
He said the state’s other two Public Service Commissioners — Chris Brown of the Northern District and De’Keither Stamps of the Central District — feel the same way he does and expect the rate increase to be voted down. However, Great River can then appeal that decision to a Hinds County Court.
Carr said the Great River rate increase was allowed to proceed before a final decision was made because the company has a bond that will kick in and reimburse customers if the rate increase is denied.