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Water rate increases

Marshall County residents might be surprised to learn that their water rates will soon increase by up to 800 percent.

Recently, the Newton City Council approved the rate increase and then waived the standard second and third readings, which prevents anyone from providing additional feedback According to the Newton Daily News, the Newton City Council defended the motion to waive the readings because “it (the rate increase) doesn’t affect Newton citizens as much.” I suppose those facing this rate increase who are neighbors of Newton are simply out of luck. For me, access to reliable and affordable water is absolutely vital to my cattle and hog operation and an 800 percent rate increase will have a devastating impact on my farm and other farms in the area.

In short, the customers who will now be forced to pay higher rates 1) did not have an opportunity to participate in the elections of the people who made this decision; 2) were denied the opportunity to provide feedback on the proposal to increase rates; and 3) the rate increase disproportionately impacts Iowans across 18 other counties.

There are, however, other options to consider. Recently, lawmakers updated the process where municipalities can sell their water infrastructure to a regulated company. In this case, Newton or other impacted communities could sell their water system and use the funds for other priorities such as the local police and fire departments, streets, or tax relief.

Additionally, if a regulated company purchased the water system, rates can only be adjusted if the Iowa Utilities Board (IUB) approves it after a lengthy regulatory process where they evaluate testimony and feedback from consumers, the Office of Consumer Advocate, and more. Within this process, there are multiple opportunities for people to express their opinion, including customer meetings and submitting comments into the IUB docket.

Moreover, when evaluating a request to increase rates, the IUB looks at whether the proposed increase is reasonable. It’s hard to imagine any regulatory body concluding that this increase is in any way reasonable.

Finally, regulated companies generally have access to far more capital than a typical government run utility. That means they have a greater ability to make investments that are critical to our infrastructure.

For those facing this rate increase, I suggest visiting www.NewtonGov.org/95/Mayor-City-Counciland contacting Newton’s mayor and City Council to encourage them to reconsider this unfortunate decision.

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