• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

New Mexico Public Regulation Commission Approves Increase in Water Rates for Clovis

Posted on: Tuesday, 12 May 2009, 13:48 CDT

Rate increase will fund vital water supply projects

CLOVIS, N.M., May 12 /PRNewswire/ -- The New Mexico Public Regulation Commission (NMPRC) approved the final order increasing rates for New Mexico American Water customers in Clovis.

The NMPRC approved a $1.36 million increase in revenue, which will increase the bill for the average monthly residential customer using 5000 gallons of water from $25.24 to $29.17, or 13 cents per day. Effects of the proposal for customers will vary according to customer class and usage.

The rate increase includes costs for major infrastructure improvements including $2,175,000 to rehabilitate six irrigation wells and convert them to domestic use and $662,000 to install 13,600 feet of 12" water main to serve the Clovis Industrial Park and improve water quality and fire protection for customers in the southern region of the city. Increased rates will also defray increased operating, maintenance and power costs.

"We are making investments that benefit the service of our customers," said New Mexico American Water Vice President Kathy Wright. "Even with these increased rates our customers will receive safe and dependable water service for less than a penny a gallon."

Since 2003, the static water levels in all of New Mexico American Water's wells in the Ogallala Aquifer have declined an average of three feet per well per year. Annual well production rates are decreasing, on average, 16 gallons per minute per well, which amounts to a 10% decrease in annual output. Without developing new sources of water supply now, the area may experience a water supply deficit within four to five years.

"I would encourage the Commission to continue supporting the infrastructure investments needed to supply water to Clovis. Today we are running 59 wells to produce the same amount of water as we could produce with 28 wells a decade ago," said Wright. "The reality is that we need to pull together as a region to address some of the vexing long term water supply issues we are facing."

The NMPRC will be holding a hearing on New Mexico American Water's application to drill a deep test well into the Lower Dockum Aquifer on May 22nd in Santa Fe.

New Mexico American Water is the largest investor-owned water utility in the state, providing high-quality and reliable water and related services to more than 48,000 people.

New Mexico American Water is a wholly-owned subsidiary of American Water. Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs nearly 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15.6 million people in 32 states and Ontario, Canada. More information can be found by visiting www.amwater.com.

SOURCE New Mexico American Water

Source: PR Newswire

More News in this Category