A special meeting of Nye County commissioners has been called for 8:30 a.m. Friday, Oct. 12, at the Bob Ruud Community Center to discuss a stipulated agreement with Utilities Inc. of Central Nevada calling for a 78 percent revenue increase in water rates and an 85 percent increase in sewer rates.

The company wants to increase its water and sewer revenues from $2.8 million to $5.1 million.

"Comments made at a Nye County Commission meeting would not be part of the official record of this case," said Rick Hackman, Public Utilities Commission spokesman. "Anything that goes on outside the PUC hearing room does not become part of the record."

Nye County filed a request to intervene in the agreement. County officials received notice of the stipulated agreement last week and have been asked to sign it. After that notice was received, county officials decided to call a special meeting.

Hackman said the rates are still a work in progress.

"That's probably an 80 percent revenue increase. How that's going to translate into the average monthly water bill and average monthly sewer bill is still being crunched," he said.

Rex Bosier, manager of the tariffs and compliance division, said Nye County didn't oppose the agreement being signed with Utilities Inc. at this time.

If the PUC and Utilities Inc. don't come to an agreement on the rate design, Bosier said plan B would go into effect. That would increase the flat fee for residential sewer rates from $23.60 per month to $44.13.

A fee is yet to be determined for water. The typical residential customer pays a flat fee of $9.90 per month plus 72 cents per 1,000 gallons used in winter, 82 cents in summer.

The cost of initially hooking into the system for a resident will go up from $440 to $750 for sewer service on a four-inch connection, from $540 to $750 for most residential water hookups.

The proposal would hike sewer treatment capacity charged to developers wanting to come into the system from $3.30 per gallon to $5.50, a 66 percent increase. Water storage capacity charges charged to developers hooking up to the system would go up from 30 to 75 cents per gallon. Those development fees will likely be passed on to home buyers.

A list of other proposed changes includes everything from returned check charges to fees to install back flow prevention devices to increases in sewer connection fees.

The agreement states the parties will use their best efforts to present their case to the Public Utilities Commission at the Oct. 24 meeting in Las Vegas and Carson City and enter an order approving the stipulation to be effective no later than Nov. 1.

Utilities Inc. of Central Nevada, the largest private utility company in Pahrump, with 4,186 water accounts, filed a 60-day notice with the PUC that it intended to file a water and sewer rate case Aug. 1, 2006. The PUC staff and the Nevada Attorney General's Bureau of Consumer Protection met with Utilities Inc. officials Nov. 16, 2006. Utilities Inc. filed the application Dec. 28.

PUC staff audited the company's books and performed an inspection of facilities in Pahrump.

The stipulated agreement contains language that concludes: "(Utilities Inc.), staff and the county believe that the proposed rate changes resulting from this stipulation are just and reasonable and not unduly discriminatory or preferential."

The PUC asked for a water-rate design study, auditing water service connections made after Dec. 31, recording the size of the meter, nature of the connection and bill information, that is to be incorporated into a consumption report, due Wednesday.

If Utilities Inc. and PUC staff reach an agreement, the water rate schedule would be filed with the commission before Oct. 3. If they cannot reach an agreement, each side will present their preferred rates on Oct. 11. Rebuttal testimony would then be scheduled for Nov. 1.

A "whereas" in the agreement states: Utilities Inc. "has made investments in facilities that it uses to furnish water and sewer service to customers within its service territory and has incurred certain expenses in furnishing water and sewer services to its customers."

The agreement states Utilities Inc. must make 14 adjustments to items like interest on accounts, advances from developers or construction accounts.

The company won't be able to make future rate-making adjustments based on $445,839 in water rights; $320,341 for the acquisition of water assets from Central Nevada Utilities Company and $203,691 for the acquisition of sewer assets; along with $65,491 in water expenses and $41,643 in sewer expenses respectively, prosecuting the rate cases.

The company was told to reduce $113,110 for major pipeline construction, for which the commission determined the company failed to provide detailed cost support. Additional fees were ordered reduced from the company expense books, like the $159,084 to acquire a television video van.

The agreement talks about the company's use of effluent as a by-product which requires a tariff; an excess water use charge for general customers; the need to protect the ground water basin with a comprehensive water conservation plan and the need to develop a comprehensive customer care plan.