Taxes

Loring Commerce Center's Water Rate Surge Shocks Small Businesses and Residents

Loring Commerce Center's Water Rate Surge Shocks Small Businesses and Residents

Tim and Sandy McCabe, proprietors of The Bunker Inn situated on Loring Commerce Center’s extensive campus in Limestone, Maine, were taken aback by the substantial hike in their prospective water bills. Commencing on January 1st, the couple will face a quarterly bill of approximately $5,340 for water usage. Previously, they were charged $1,700 per quarter, indicating a formidable jump to $21,360 annually from nearly $7,000, marking a 300% increase. This considerable rise poses a serious concern for small businesses like theirs. The McCabes were among several business owners and homeowners voicing their discontent over these sharp rate hikes at a recent Loring Development Authority board meeting. The dissent stemmed from what they called a grave communication lapse from Loring’s leadership. The newly enacted water and sewer rates, which were effective as of October 1 following the Maine Public Utilities Commission’s approval, will notably impact tenants starting in the 2025 billing cycle.

The revamped rates stipulate that a minimum usage of 900 cubic feet of water will now cost $471.30 quarterly. In comparison, the 2016 rates charged merely $40 for a higher usage range, along with an additional fee of $0.40 per cubic foot exceeding 1,200. This substantial increase is also influenced by the size of water meters in residences or businesses, according to reports submitted to the Maine PUC. The adjustments in rates were deemed essential due to the authority not having revised water charges since 2016, explained Loring CEO Jonathan Judkins. The outdated fees failed to align with rising expenses for water system upkeep, which currently amass to $990,200. A lot of the shock, he suggested, arose from historically low charges.

The authority, post engaging the Maine Rural Water Association after a prior operator’s resignation, initiated reviews on the rate system. Following internal approvals, the proposal was forwarded to the PUC by May. Additionally, the authority, with PUC’s concurrence, introduced a 50% subsidy aimed at halving the actual rates borne by customers, despite the additional $500,000 incurred in water and sewer expenses. Support from the next Maine Legislature is sought to cover this subsidy. Nevertheless, the heightened utility rates remain burdensome for Loring-based residents amidst persisting high living costs. Gail Isabel, a resident, lamented her expected bill surge from $132.80 to $855 quarterly, totaling over $3,200 annually—surpassing her property tax outlay. For seniors like Isabel, who earn a limited monthly income, the increments are especially distressing.

Criticism was directed at the authority’s notification approach, as several residents reported first learning of the new rates through samples included in recent bills. Judkins countered that directives from the Maine PUC were strictly adhered to, entailing publicity via print, broadcast media, and tenant correspondence for a public hearing held in September. Despite these efforts, tenants persistently alleged missing out on direct notifications and timely advisories regarding recent boil water directives. In response, authority officials are now committed to refining communication protocols, prioritizing the collection of tenant contact details to facilitate prompt, multichannel alerts including emails, phone calls, and social media posts. They are also focused on maintaining more current website updates, managed by external web designers. These enhancements aim to foster clearer communication, which Judkins noted would be addressed in a scheduled subsequent public hearing, designed to better inform Loring tenants about their newly set rates.