Utilities Inc. customers will notice an increased rate with their December bill, in mailings beginning this week, Regional Vice-President Paul Burris said.

The new rates took effect when the Public Utilities Commission signed the rate request Nov. 27.

Utilities Inc. is the largest private utility company in Pahrump with 4,186 water customers as of the end of 2006. Two more groups of customers will receive their bills during the third and fourth week of this month.

The average residential customer will see their water bill go up from $20.50 per month to $27.84, Burris said. The base sewer rate for most residential customers will increase from $23.60 per month to $44.13.

Burris said the company asked for a $3.2 million increase in revenues and was granted $2.4 million.

"We hardly ever get what we ask for," Burris said. "We're glad it's over."

That $2.4 million in additional revenue from rates will pay for improvements already made, he said, like a $7 million upgrade to the sewer plant at Willow Creek golf course and the upgrading of the Plant F water plant from a capacity of 10,000 gallons per day to 50,000 gallons. A 750,000 gallon water storage tank was also built near Desert Retreat RV Park, Burris said.

"Unfortunately there's a lot of infrastructure that has to go into Pahrump," Burris said.

The debate over whether to pay for development through rates or impact fees has to be weighed, he said.

"You have to balance between the current residents and development and try to make it work for everybody," Burris said.

The new water rates are designed to encourage water conservation. Residential customers using less than 8,000 gallons per month will pay 99 cents per 1,000 gallons, over that the cost rises to $1.67 per 1,000 gallons. Burris said that came after a bill that passed in the last session of the Nevada legislature mandating water conservation, following a request from the Nevada Department of Water Resources.

"When we went into the rate case we were doing a single (water) rate. But when the law passed, we said OK we need to tier them," Burris said. Utilities Inc. decided to do that now, instead of waiting for their next rate increase application.

Burris said he didn't think 8,000 gallons per month was too tight an amount, judging from his own water bill in a house with two residents.

"I'm well below that and I even have a drip (irrigation) system, 20 plus plants in the yard. It seems reasonable for a family of two or three," he said.

Utilities Inc. plans some public outreach sessions to educate people on water conservation, Burris said.

Nye County Commissioners won concessions from the company, including the extension of some dead end lines, curing a smell problem at the Willow Creek sewer plant and engaging in quarterly discussions over customer concerns.

"We're definitely working on creating a great image and improving the integrity and honesty of Utilities Inc. We're here to stay. We want to be part of the community and be beneficial to the community," Burris said.