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Economy sues Ambridge authority over rates
(Beaver County Times (PA) (KRT) Via Acquire Media NewsEdge) Jul. 18--BEAVER -- Economy has sued the Ambridge Water Authority, claiming it imposed higher rates for Economy customers than for customers in other communities.
The suit, filed July 3 in Beaver County Court, claims that rate increases from 2004 to 2008 violate the terms of a 1991 contract the two parties signed that spelled out future rate changes as well as tap-in fees. The agreement established that Economy would install water lines, which would become an exclusive service area of Ambridge.
A mandatory tap-in ordinance was also adopted as part of the agreement, and Economy residents were required to pay $1,500 to connect to the water system, $1,100 of which was to go to the borough and $400 to the water authority. Ambridge was not to discriminate against Economy customers in terms of rate increases or tap-in fees, according to the suit.
But, according to the suit, while Ambridge raised rates for Ambridge, Harmony Township and other authority customers from 1992 to 1996 imposing the same or a similar dollar differential, the authority imposed "significantly higher" costs on Economy residents from 2004 to 2008.
Economy solicitor Dale Fouse said residents were also being charged more than the original $1,500 tap-in fee to tie into the system. The "special component" fee, based on a new formula, put costs "over and above the basic tap-in fee," which was imposed on Economy customers only, Fouse said.
The water authority serves about 2,450 Economy customers.
According to the suit, Economy has worked since 2005 to resolve the dispute amicably and without legal action, but felt the last recourse was to have the courts determine what customers should pay.
Ambridge attorneys recently told the borough the authority has no intention of adjusting the rate, according to the suit.
Ambridge Water Authority General Manager Mary Hrotic declined to comment.
Fouse said that based on the facts, "Economy borough is being discriminated against."
The borough is asking for a cost-differential reimbursement or a credit to customers' bills. The suit also seeks court costs. The borough also wants the court to declare that a "special component tap-in fee" adopted in 2007 violates Act 57, and is seeking a $1,100 reimbursement for each tap-in fee paid.
Larissa Theodore can be reached online at ltheodore@timesonline.com.
Water Rates based on 10,000 gallons used per quarter
2004 2005 2006 2007 2008
Ambridge $42.50 $43.58 $44.67 $45.97 $47.29
Harmony $54.81 $56.19 $57.59 $59.24 $60.92
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Economy $66.94 $68.56 $70.21 $72.25 $74.33
Source: table prepared by Shoup Engineers
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Copyright (c) 2008, Beaver County Times, Pa.
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