PSC Vice President Jim Gardner moderated the event and Charlie Borders, Commissioner of the PSC, was also present to hear public concerns. PSC Chairman David Armstrong was not able to attend. Representatives from the Water Service Corp. were in attendance and answered questions afterward privately. The assistant Attorney General David Spenard was also there. Another public meeting will be held tonight in Clinton, Kentucky.
“We understand that this proposed increase has generated some controversy. We also recognize this can be an emotional issue, particularly given the current economic situation,” said Jim Gardner, Vice President of the PSC.
City resident John Blackstone brought up that Water Service Corp. is owned by Utilities, Inc., which is a subsidiary of insurance giant AIG.
“We’ve already spent approximately $167 billion in taxpayer money to bail them out,” said Blackstone, about the company. AIG was criticized for paying out bonuses to top executives after receiving federal bailout money. “They want to make a large profit and hide it as different entities.”
“Why are they asking for a 51 percent increase to pay for something that could be paid for over a smaller increment?” Blackstone continued.
State Representative Rick Nelson (D- Middlesboro) also spoke. He complemented local employees of the water company but voiced his opinion that the proposed increase is overwhelming, “How long will the customers of Middlesboro and Clinton have to pay for these improvements? After these improvements are paid for, that money will just keep going on and on, and the citizens of Middlesboro and Clinton will have to pay that extra money even though the improvements have already been paid for.”
Representative Nelson said that Utilities, Inc. was seeking a 11 percent profit margin.
“Eleven percent is unrealistic for a profit margin in these times,” said Nelson. “Yet this extra money, after all of the expenses are paid for, seem to be going for that extra profit.”
Middlesboro resident Romell Johnson said that a water rate increase of this magnitude would hurt, not only citizens, but businesses too.
She said the increase could “deter new businesses from coming into the Middlesboro area and could even turn existing businesses away.”
Middlesboro City Councilman Gary Mills asked that the increase be spread out over a period of time at a lower rate. “Our people cannot afford this,” he said.
Local resident Murrell Davis said that a 51 percent increase was “nothing but corporate greed.” He added that because the meeting was held on Wednesday night, many of the citizens most hurt by the rate increase couldn’t come out because church services are traditionally held on Wednesday night.
Davis wasn’t just angry about the water rate. He said he was disappointed in his elected officials for not showing up at the meeting.
“Why is our mayor and four city councilman not here? Why is our county government not here?”
The only local elected officials present were Middlesboro City Council members Mills and Everett “Mammaw” Gulley, along with Representative Nelson.
Stephen Woodward is a Staff Writer for the Daily News. He may be contacted at swoodward@middlesborodailynews.com.
Post a Comment
