Before TMWA was formed in 2001, a rate increase had not taken place for three years and the Board promised that there would not be a rate increase for an additional two years after our formation for a total of five years without any rate adjustments. This situation with the need to commit to meaningful repair and rehabilitation necessitated the rate increases. At the time of purchase, promises of how much repair and rehabilitation work was to be completed every year was made to the buyers of our bonds. In order to keep these promises, it was necessary to raise rates, as there was insufficient revenue.
Testimony regarding the sale and PUCN order can be viewed here: http://tmh2o.com/about_us/financial_information/. These historical documents clearly identified concerns by the BCP that the water customer revenues were insufficient to cover expenses, including both the operating costs of the utility and the debt service on aquisition bonds.
