Company asks to raise Joplin water rates

In cases filed Friday, the company also asked the commission to allow it to assess a surcharge to Joplin customers to pay for treatment plant improvements.

Missouri American said it asked for the rate increase because of the cost of infrastructure improvements and increased operating costs including higher bills for chemicals, fuel, labor and insurance.

According to Missouri American, the bill for the average residential customer using 5,700 gallons of water per month would increase approximately 24.48 percent to $4.11 per month. The average customer in Joplin would pay a base rate of $20.40 per month.

The rates for commercial and industrial customers would increase 25.24 percent.

Christie Barnhart, the company’s communications manager in Joplin, said the surcharge would allow the company to pay for $44 million in improvements to Joplin Water Treatment Plant, 2100 Murphy Ave., during construction.

Work on the project is scheduled to begin in February and continue into 2008. Reynolds Inc., of Orleans, Ind., is the contractor. Several area firms are working as subcontractors.

The surcharge would add $1.95 in the first quarter after PSC approval, $3.90 in the second quarter, $5.85 in the third quarter and $7.80 in the fourth quarter for a total of $19.50.

“What we are trying to do is pay for it gradually instead of all at once,” Barnhart said.

The surcharge proposal would save customers between $1.7 million and $2 million, she said.

It will be approximately 11 months before the PSC rules on the requests.

Rates have not increased for Joplin customers in 10 years. The utility requested an approximately 16 percent increase in November 2004. The PSC rejected the request and instead ordered the company to decrease rates 3.05 percent.

See Joplin Tri-State Business’ Jan. 1 issue for more on this story. Joplin Tri-State Business is SBJ’s sister publication.