The night before a larger group complained about a proposed rate increase by Utilities Inc. of Central Nevada, a handful of customers showed up at the Bob Ruud Community Center Thursday night to gripe about a proposed rate increase by a smaller company, Desert Utilities Inc.

Desert Utilities has 414 water accounts and 225 sewer accounts in the north side of Pahrump, including the Allen Estates and Desert Trails subdivisions, near Simkins Road and Highway 160.

Dave Noble, hearings officer for the Public Utilities Commission, said he will be hearing the case Nov. 27. The rates will be established Jan. 14, 2008.

The company wants to achieve additional water revenues of $152,936, a 110 percent increase and additional sewer revenues of $17,067, a 19.3 percent increase, company attorney David Norris said. The company had an historical test period on the rates in 2006.

The flat residential sewer rate would go up from $20.78 per month to $24.79. The flat rate for most residential water accounts would go from $5 per month to $10.49.

Residential customers would pay $1.07 per 1,000 gallons for the first 10,000 gallons per month, up from 51 cents. Customers using more than 10,000 gallons per month would pay $3.21 per 1,000 gallons instead of $1.53.

"For some time the parent company of Desert Utilities has had to infuse capital into the utility in order to continue its day-to-day operations," Norris said.

Pahrump Valley Holdings, LLC has loans totalling $115,000, he said.

"That is money that is not being recovered in the rates approved by the Public Utilities Commission," Norris said.

Tom Cardin, vice-president for Focus Property Group, was introduced at the beginning of the hearing. Desert Utilities has a more simplified procedure for rate increases under Nevada law, as a utility with fewer than 3,000 accounts.

"The amount of money we required doesn't mean we're going to get it," Norris reminded the audience. "It's strictly an accounting function. We don't have enough revenue. We think we need $153,000 more to help make ends meet."

On Feb. 15, 2005, Desert Utilities and Pahrump Utility Holdings, LLC filed a joint application for transfer of all stock. A rate case application was to follow 18 months after that approval on July 25, 2006.

"In my experience in the industry I've never seen a request that high," Norris admitted. "It's all part of the process to make sure the investors have a reasonable rate of return for investing in the utility."

Mike Johnson, general manager of Desert Utilities Inc., said customers who use less than 10,000 gallons per month won't see their rates increase as much.

But Loyal Watkins, a utility customer, said they already had a 26 percent increase on water and 34 percent increase on sewer rates on June 30, 2004. He disputed whether he could bathe, do his laundry and wash his car using 10,000 gallons per month.

"Mr. Norris, I can't believe you'd buy a utility and not know the revenues," Watkins said. "Just have mercy on the people of Allen Estates."

Watkins said many of the residents are retirees.

"I understand everybody needs a raise. But I'd ask you to be lenient on us," he said.