Public Service Commission Reexamines Avondale Rate Increase

The Public Service Commission took up a request from Senator Shane Massey, Rep. J. Roland
Smith, and Rep. Tom Young, Jr. in its weekly meeting this afternoon. The three legislators
expressed concerns about the impact of a recently approved rate increase to the customers of the
Avondale Mills water and sewer system.

On June 18, 2009, the Commission approved the first rate increase in 28 years for the system,
which has continued to operate on a standalone basis since the closing of Avondale Mills in July
of 2006. The Commission was faced with a water and sewer utility that was losing nearly
$500,000 per year, and the utility needed a substantial rate increase to make it solvent.

Today the Commission acknowledged that some of Avondale’s customers appeared to have been
taken by surprise by the rate increase. The Commission ordered Avondale to suspend the new
rates until further notice, and directed the Commission staff to work with Avondale and the
Office of Regulatory staff to find ways to ease the effects of the increase on customers and
ensure that adequate notice is given.

The parties were told to bring their proposed solutions to the Commission at its next meeting on
Wednesday, August 12th.

A copy of the Commission’s directive in the matter accompanies this press release. Please
contact PSC Chief Administrator Charlie Terreni with any questions at (803) 896-5133 or at

Click here for the full press release with the Commission’s directive

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