Aug. 27--The state Public Regulation Commission approved a rate increase for Eldorado Area Water and Sanitation District customers and left open the door for another increase.

The 3,000 customers of the utility southeast of Santa Fe will see the new increase in their November bills. An interim increase appeared on their bills in June.

"The board is very relieved to see the end of this very long process," said Roberta Armstrong, the district's board secretary. "The primary concerns we've had is our ability to handle our capital improvement projects."

A new well, new water meters, larger waterlines and hydrants for improved fire protection, plus upgrading the well and storage tank monitoring system, are among the district's priority projects, Armstrong said.

Lucian Niemeyer is one of the Eldorado residents who protested against the rate increase when it was first proposed in 2007. He said he was disappointed by the PRC's decision but noted the final increase was not as high as the utility originally requested.

"Originally they were expecting to get a little over $1 million (from expected new rate revenues)," Niemeyer said. "They got a total of $569,000."

"It's a sad day for the community," said John Hawkins, another Eldorado resident who protested against the rate increase. "Mismanagement is why they had to go for a rate increase."

The rate increases are staggered, with the highest water users paying the most. Residents using 1,000 to 3,000 gallons in a month will see a 16 percent increase to $9.40 from $8.09. Customers using 20,001 to 30,000 gallons will see a 26 percent increase, to $24 from $19.

Commercial customers will pay an extra 50 cents for monthly water consumption up to 10,000 gallons, a 4 percent increase.

The district proposed rate increases in 2007 after two public hearings. The proposal prompted protests from Eldorado water customers. The PRC held hearings and approved an interim rate increase in June, then approved a final increase Aug. 20. A third increase will occur when the water district finalizes a capital-improvement package of $2.86 million through the New Mexico Finance Authority.

After this, the Eldorado Water and Sanitation District won't have to appear before the PRC to raise rates. Legislation passed in the spring exempts the water utility from PRC regulation unless it voluntarily opts for it. Customers who don't like rate increases can appeal to District Court.

Niemeyer, a photographer and retired business manager, said he has a lot of issues with the way the water utility has been run ever since the Eldorado community voted to buy it from a private company a few years ago.

Niemeyer ran for a position on the utility board last year and lost.

He said there hasn't been an audit of the utility's finances as required by law for the last two years. "We forced that issue last October. The board contracted to do the audit in January 2009. We still don't have it. An audit takes two to three weeks. It is not complicated.

"We have a problem with the way the district continues to be run," Niemeyer said.

In a June opinion piece in The New Mexican, the district's president and director, Jim Jenkins, said the rate increases in part were needed to pay for repairs on a system neglected by the previous private owner and on the $11 million debt incurred to buy the water system. In addition, Jenkins said the "Niemeyer-led protests continue to cost EAWSD's rate payers, costs which now exceed $100,000."

While the new rates may upset some Eldorado customers, they are still far cheaper than the prices that Santa Fe water customers pay each month. Santa Fe water users will see their rates rise by 8.2 percent for each of the next five years. Currently, residents pay $34.10 for up to 6,000 gallons per month.

Contact Staci Matlock at 986-3055 or smatlock@sfnewmexican.com.

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