First reading of an ordinance to recognize an increase of wholesale water rates was held at the Nov. 6 Russellville Council meeting by City Attorney Bob Hedges.

The ordinance exhibits support for the Public Service Commission's (PSC) recent approval of Russellville's application for a rate increase to North and East Logan water districts of $2.45 per 1,000 gal.

The increase, said Hedges, is a result of the 1998-99 water crisis, which cost the city approximately $1.5 million to rectify.

According to CIMA Executive Director and former Russellville City Utilities Director Chuck McCollum, "The city of Russellville should not have to bear the whole burden of this debt. The water districts use Russellville's water, too, and they should have to contribute as well."

After the crisis, city of Russellville officials raised water rates to city customers to help with the payback. They added a .55 cent charge per 1,000 gal. to help soak up the debt. They also wanted to raise wholesale water rates at the time to share the burden (East and North Logan Water), but needed to complete a rate study before applying to the PSC for an increase.

The city hired Brents Dickinson, a civil engineer from Bowling Green, to perform the study, which was sent to the PSC on March 22.

Dickinson concluded that the rate should be increased to $2.45 per 1,000 gal from the previous rate scale, which gave discount for more usage.

According to Hedges, the water districts (East and North Logan), upon receiving a bill with the new rate, weren't pleased with the increase and filed a complaint with the PSC.

While the complaint is currently in litigation, the districts have been ordered as of October, to pay the increase into an escrow account, which will either be turned over to the city of Russellville or go back to the districts after a judgment is handed down.

Since the wholesale increase by the city of Russellville (not yet received), the water districts themselves have filed an application (which was approved) for rate increase.

The districts notified their customers that because of a rate increase from Russellville, they too had to enact an increase as of Oct. 1. The East Logan bill for an average customer using 5,000 gallons each month will go from $37.31 to $42.46, a monthly increase of $5.15 or 13.8 percent.

The N-D&L was unable to get rate increase comparison for wholesale rates from CIMA at time of publication.