Aqua Utilities makes money even when its customers don't use any water. The company charges customers in its three Pasco County service areas a $50 facility charge before they use the first drop of water. It's a billing strategy that keeps the money flowing in communities with a large number of seasonal residents.

"What this company is doing to these people is very unfair," said Frank Reams, a retired customer service manager for a telephone company. "They charge customers a $50 monthly facility fee even when they're not in the house."

A cofounder of Friends of Locally Owned Water in Florida, or FLOW, Reams is volunteering his time to help Aqua customers fight the rate hikes. Reams said the company's customer service record is appalling. "The PSC regulates 160 water companies in the state of Florida," he said. "This company accounts for 47 percent of the total complaints."

In February, the Florida Department of Environmental Protection cited Aqua Utilities' Palm Terrace sewer treatment plant for being "significantly out of compliance." Inspectors found dozens of violations, among them "solid waste was observed in the southern pond, and large solids were at the surface of both ponds."

Inspectors noted: this is a repeat item.

Company spokeswoman Gretchen Toner said she couldn't comment on the inspection report other than to say, "We are in compliance and our folks are addressing the issues in the letter."

Pasco County Commissioner Jack Mariano held a town hall meeting for Aqua customers earlier this month in Jasmine Lakes. More than 400 people attended.

Mariano is helping organize a bus trip to Tallahassee for the PSC's May 24 meeting. The commission is scheduled to rule on the rate case.

On March 11, Pasco Commissioners unanimously adopted a resolution opposing the rate increase. Mariano said Aqua's facility charges are already 237 percent higher than Pasco County's charges. "These people can't afford it," he said. "Imagine being a single lady on a retirement income who used to pay $40 a month, and now you're paying $150."

The PSC approved a rate increase for Aqua Utilities in 2009, but the company applied for another increase a year later. In the application, Aqua executives said they need the rate increase to pay for $12 million in capital improvements.

Another reason is that since the 2009 rate increase, Aqua's customers have reduced their water consumption by some 16 percent. Hundreds of customers have installed private irrigation wells -- including 136 in one community.

"Faced with these dire conditions, the company has no choice but to seek timely rate relief," Aqua attorney Bruce May wrote. In a letter to PSC Chairwoman Nancy Argenziano, May wrote that the company's anticipated 10-percent profit margin would drop to 1 percent without the rate increase.