Great Barrington — In a letter to customers, Housatonic Water Works (HWW) asked that they support the idea of the town purchasing the long-troubled company. The letter, which is the latest in the saga of the long-troubled and controversial company known for its poor water quality, was written by company Treasurer James Mercer and dated Tuesday, October 1, but was sent to customers before that date.
In the letter, Mercer references the Department of Public Utilities approving its rate-increase request in late July. As proposed by the company, customer rates will be increased by over 90 percent over the next five years. According to the company, the rate increase will help cover various infrastructure improvements, including a manganese filter system, an interconnection with the Great Barrington Fire District, a new water-storage tank, and a main replacement.
The towns of Great Barrington and Stockbridge subsequently filed appeals in the rate case in late August.
In his letter to customers, however, Mercer writes that additional rate increases may be needed. “While HWW may be well-positioned to address its immediate and mid-term capital projects following the approval of the rate increase, if it remains independent, the rates required to meet its long-term capital needs will be substantial,” he writes. “These future projects will likely necessitate significant additional rate hikes, creating a heavy financial burden for many village residents.”
Mercer does not specify what the additional rate hikes would be.
Back in December, the town announced that it would investigate the possibility of acquiring the company. The Selectboard instructed Town Manager Mark Pruhenski to conduct a study on the potential costs for the acquisition and operation of HWW, along with the potential revenues, expenses, and capital needs for the water system that would be operated on an enterprise-fund basis.
As Pruhenski reported at a July Selectboard meeting, the report’s completion was delayed due to a lack of cooperation from HWW. As he stated at the July meeting, however, the report should be completed in October. Pruhenski added that the study “is the final step in gathering data before we can bring an acquisition proposal before voters for consideration at an upcoming town meeting.”
In his letter to customers, Mercer writes that he was encouraging the town to purchase the company to create what he called the “Housatonic Water District.” Mercer writes that the town acquiring the company would be the first step in creating the district and that it would be structured in the same way the Great Barrington Fire District is structured with its own bylaws and taxing authority. “The town’s role would be to facilitate the creation of the [water district] while state and federal funds for capital improvements are still available,” Mercer writes. “This new quasi-municipal entity would allow us to access funding unavailable to private companies like HWW, enabling necessary system upgrades without overburdening residents. Creating the [water district] would provide local control over water management, allowing for more efficient operations and improved sustainability practices. Additionally, this new district could lay the groundwork for a future merger with GBFD, streamlining operations and reducing costs by consolidating water and fire services.”
While Mercer states that HWW encouraged the town to purchase the company, he does not disclose the company’s sale price. Mercer writes that further details of the company’s proposal will be given at a virtual meeting on Wednesday, October 16, but he does not list a time for the meeting.
