Aug. 6--Graniteville and Vaucluse water rate increases have been immediately suspended by the South Carolina Public Service Commission (PSC) until further notice.

The PSC took action to combat the rate increases allowed to be implemented by Avondale Mills, admitting they did not realize the effect the price increase would have on residents of the impoverished former mill town.

The PSC began its meeting and immediately addressed the issue after an appeal from Sen. Shane Massey and Reps. Roland Smith and Tom Young.

"It appears we did not fully appreciate the impact on the community of the rate increase," Commissioner Randy Mitchell said. Mitchell represents Aiken as the District 3 commissioner.

Residents have reported bills jumping by as much as 700 percent from June to July with total amounts owed for some nearing $1,000 for the worst affected. Young said the rates imposed by Avondale are the highest "by far" of any water or sewer customer in the Central Savannah River Area.

The motion suspends the rate increase as well as any cut-offs or penalties to customers until further action by the commission, which voted unanimously in favor of the amendment.

Mitchell presented a four-part motion to further examine the increase, and later amended it to directly suspend rates. Additionally, the commission appointed an arbiter to gather information on the full impact of the rate increase on customers. The commission also called on Avondale to provide, to the same arbiter, complete billing information for a full year for examination. This, according to Massey will allow a tangible contrast between bills earlier this year and the June-July bills. Finally, the arbiter must confer with Avondale on solutions.

The commission agreed with the legislators that Avondale should have done more to notify its customers before the "unusual" situation of the first rate increase in 28 years. They did also implore residents of the area to implement conservation measures as their average water use far exceeded the accepted state average usage.

Mitchell explained in his motion that due to Avondale's water use that residential customers had "received service at an artificially reduced rate" for many years. After the mill shut, the commission "reluctantly" approved the rate increase so that Avondale water and sewer could remain a solvent company.

"I think this is the best outcome for right now," Massey said, identifying that a takeover of the system by Valley Public Service Authority is the only true, long-term solution.

Negotiations are ongoing for the Avondale system to be taken over by VPS and a major refit of the system is planned using federal stimulus funds and grants from the U.S. Department of Agriculture. As well as the investigation into the rates, Avondale must come up with a solution to the problem and present it to the commission at its next meeting Wednesday.

Further action and the unlocking of the rates could take place Wednesday, however Smith does not believe a week is long enough to come up with a real solution.

"They had six months last time and they didn't get it right," he said. "A week isn't near enough time."

If no solution is reached, Mitchell said, then "the Commission may act on their own," though he did not specify what action they may take.

Contact Mike Gellatly at mgellatly@aikenstandard.com.

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