MARK WAITE / PVT Art Gaytan, pointing toward camera, lets Utilities Inc. officials have it about his water bill. RELATED STORY Utility has made some changes Advertisement

Utilities Inc. of Central Nevada Regional Vice President Paul Burris said the company would consider changing the sewer billing rate for commercial businesses from charging for each fixture to a rate by the volume of sewage discharged, during the next rate increase application, possibly as early as 2010.

Burris spoke to about 75 people during an informational meeting with a PowerPoint presentation to update customers on changes at the utility company but spent most of the time fielding numerous questions from angry customers.

Trish Rippie, owner of the Beehive Home, became the latest business owner angry about the company's policies. Rippie said she's been threatened with having sewer service at her assisted living home cut off this month if she doesn't come up with $8,755 in hookup fees and a half-acre of water rights that will cost about $7,500.

It was the second business this week to voice complaints that rates charged by Utilities Inc. were driving them out of business. Rob Burgess, owner of Seemoore's Too! said he was posting a for sale sign for his restaurant due to the fee he pays of $23.19 per month for each fixture.

He described a sewer bill at the Wheeler Springs Plaza which doubled from $1,000 in September to $2,000 in October.

"I'm very concerned about your effect on business," Vicky Parker, who was recently elected to the Pahrump Town Board told Utilities Inc. officials. "We're very concerned about attracting business and retaining the businesses we have, especially now with the downturn in the economy."

"We did a fixture audit," said Utilities Inc. Regional Director Wendy Burnet about Seemoore's Too!, "which has not been done ... since we bought the company in 2002. Commercial rates are based on the number of fixtures. It does have a huge impact to commercial businesses, it's $23.19 per fixture, and a fixture is anything that has a drain. It's a sink, it's a floor drain, it's a bath tub, it's a shower stall, a drinking fountain, anything with a drain."

The crowd chanted, "Why? Why?"

"Why?" echoed Burnet. "Because that is what the rate is in the tariff. We are governed by the Public Utility Commission."

Burris said Seemoore's Too! had been paying for four fixtures and actually had 10. He said Seemoore's Too! wasn't asked to make back payments for the discrepancy. That business owner could reduce his cost by sealing six fixtures and only paying for four, Burris said.

"Now we have a process at the end of construction, we go check it to see there's only one bathroom so we charge them the right amount," Burris said.

Regarding the Beehive Home, Burnett said when Rippie opened her business the hookup fees weren't paid to the old Central Nevada Utilities Corporation.

"When a business comes in and builds, they have to pay capacity fees because in the state of Nevada, growth has to pay for itself," Burnet said. "What happened in Trish's case when she moved in and started this new business in the community, those fees were not paid, and so to be fair to every other business I have to treat them all the same."

Rippie said if she knew about getting this large a bill eight years ago when she opened the Beehive Home, she would have bought an acre of land and installed a well and septic system. She also said her sewer rates went up from $23 per month to $650 per month in late 2007, with the implementation of a new rate schedule.

Burris suggested Rippie take a complaint to the PUC. Alaina Burtenshaw, PUC legal counsel, was seated in the back of the room observing the meeting.

Rippie called the request for the $16,000 "extortion" and complained people don't have a choice, they have to hook up to Utilities Inc. if they're in the service area.

Burris said Utilities Inc. is like any other business that has to generate enough revenues to pay its bills.

Contractor Gabriel Adame, chief executive officer of Casa Adame homes, told Burris, "It seems like since you came in here, the price we're paying has just tripled."

Burris said Utilities Inc. took over a system in a community that needed infrastructure, such as new sewer treatment plants, water storage tanks and lines that needed to be repaired. Many of the lines installed by Preferred Equities Corporation weren't adequate to handle fire flow, he said.

"We built a $7 million wastewater treatment plant, we built a $2 million (water storage) tank and pipelines up on the north side. We spent roughly a million dollars connecting systems with small pipes. That's what was done that led to the rate case. So that money was already spent and then we filed for the rates. Then the rates were set based on what we spent," Burris said.

Developers who pay to hook onto the system instead of building their own sewer treatment plants, pay a fee to Utilities Inc. which is deducted from their rate base when the PUC approves the rates, he said.

The company instituted a three-tiered water rate in the increase approved last November to encourage conservation in the desert, Burris said. He said the rate of 99 cents per 1,000 gallons for the first 8,000 gallons is the cheapest he's seen in any of the 40 companies he supervises.

Customers, who were mostly retirees in the morning session, complained more about the new $44 flat rate for sewer service.

"I'm one person. I pay $44 a month. This is a hardship, especially with an 8-1/2 percent electric rate increase coming," Claire Ludwig said.

Eva Scharf said Henderson only charges $19.33 per month for sewer. Burris said larger cities can afford to charge less.

Ben Clark said to some applause that the timing of the fee increase is bad with the current economy.

He said sometimes his water bill would rise a few dollars from $18 per month but this year it jumped to $70.

"A lot of us are on fixed incomes, we're on a pension and social security," Clark said. "What happens when a lot of the people have to move out or sell their homes? That's happening all over the country right now. You picked an inopportune time."

Art Gaytan was angry about his bill, which shot up his usage from 4,600 gallons of water in June to 35,000 gallons in July.

"Now do you think that my wife and I, the two of us, would take that many showers to use up 31,000 gallons in one month?" Gaytan said.

Gaytan received a $6 refund after an adjustment. Burris said Utilities Inc. instituted a new computer system in June. Adjustments were made to low estimates in June with the July bill, he said. Burnett admitted there were some problems when that software went online.

Bill Halifax said his water bill tripled and he lives alone with his dog.

Rebecca Fuchs said she was gone for three months when her husband was in the hospital last spring and her water bill didn't go down one penny.

"From the end of May we weren't here until the beginning of October and our bill one month was 90,000 gallons of water," Fuchs said.