Utilities Inc. of Central Nevada still plans to upgrade water lines to improve fire flows, despite a rejection for a partnership with local governing boards to pursue $250 million in economic stimulus funds, UICN Vice-President Paul Burris said.

The company's request for a partnership with the town of Pahrump and Nye County for $250 million in funding from the economic stimulus package were both turned down amid fears residents would have to cap their wells.

Utilities Inc. Regional Director Wendy Barnett told Nye County Commissioners that besides improving fire flows, the money was to be used for extending service to former Calvada lots considered unserviceable and recycling effluent for use in places like the fairgrounds and other community facilities. Burris said there's 16,000 unserviceable lots in Pahrump Valley.

Burris said his company had representatives in Washington D.C. the day county commissioners rejected the request, who were lobbying to use those funds on a utility operated by the company in another state.

"Here's a perfect opportunity for people to get something free, but some people can't get out of the past," Burris said.

If no other grant money is available from the state, Burris said Utilities Inc. may apply for another rate increase this December. The utility is allowed a rate change every three years by state law. The last one was enacted in 2007.

The improved fire flows in Pahrump will reduce the ISO rating of the Pahrump Valley Fire and Rescue Service, Burris said. That ISO rating has already improved from seven to three, the lower the number the better the rating, which results in lower fire insurance premiums.

The infrastructure improvements included placing fire hydrants throughout Pahrump Valley. At least twice in 2008 when fires broke out in different parts of the valley at once, water trucks had to leave the scene of a fire to fill up.

Burris estimated the cost of improving fire flows in Pahrump Valley at roughly $6 million to $7 million. The company could undertake perhaps $500,000 in improvements every year, he said.

There's also the possibility of applying for money through the State Drinking Water Fund, Burris said. Half of the funds must be available in grants, according to the economic stimulus package, he said.

Utilities Inc. is planning to tap into the funds to improve the water quality of Spring Creek Utilities to meet arsenic standards, which is also operated by UICN, outside of Elko.

But Burris said, "the reuse (project) is gone because that's a very expensive, capital outlay."

Burris said he tried to dispel the misconception the utility would be using government money to add to its equity, which would then have to be bought by the county someday.

The utility company also sought to reassure people using wells and septic systems they wouldn't have to hook up to water and sewer lines. State law requires residents to hook up if the water line is within 180 feet, or the sewer line is within 400 feet of their home, if their well fails. Burris said neither Utilities Inc., nor the Nevada Division of Water Resources were going to force people to hook up to the system.

Bob Coache, chief engineer for the Southern Nevada office of the Nevada Division of Water Resources, confirmed his office can't, by law, deny permits to redrill wells that go dry, unless water is available to a parcel from a utility company.

Coache advised residents that 70 percent of the wells in Pahrump are drilled within 40 to 50 feet of the same depth and all may have to be redrilled deeper some day.

Government regulators and utility companies both foresee the day when wells and septics will be a thing of the past in Pahrump as well.

"There's 12,000 of them. At some point, enough's enough," Coache said.

Burris said the problem is not only the fact Pahrump Valley basin is overappropriated with water rights but the continued proliferation of septic tanks may require people to install filters to remove nitrates in the groundwater.

"Over time it's likely something is going to happen," Burris said. "Let's start looking at it as the town as a whole. We have to start looking at the big picture."

Also in the near future, Utilities Inc. is interested in working in partnership with the new Nye County Water District, which is scheduled to have its first board meeting in March.

Pahrump utility companies don't have a seat on the water district board according to the bylaws. Burris said he's reviewed the Nye County Water District's budget and has concerns over how they will generate revenue.

"We have a whole list of things we need to talk to them about," Burris said.

Part of the reason for the 0-10 vote by both boards to reject the public-private partnership stemmed from the company's image in Pahrump. Memories still linger about delays in getting service to the new hospital, subdivisions like Cottage Grove and the last rate change, which charges commercial accounts by the drain, driving a restaurant like Seemoore's Too out of business.

Burris said Utilities Inc. is willing to meet any time with local groups.

"I have offered since I came here to meet with anyone to go over how our rate structures are done and nobody has taken us up on it," Burris said.

"We have been really trying to address customer service," he said. "People don't give you credit for the changes you made."