Thursday, October 14, 2010

Council calls new meeting regarding rate increase

Council feels like an explanation from its attorneys regarding the wastewater increase is in order, and they plan to meet Tuesday night to get one. Council members anticipate taking another vote at the meeting.

No one in Coatesville likes the increase, and almost no one thinks it's fair. But after talking to a number of attorneys, it does seem to be legal - meaning that if the case were argued all the way up to the Pennsylvania Utility Commission, Pennsylvania American seems likely to be awarded at least $6 million in a rate increase.

And if the case is decided by the commission rather than settled, attorneys say, benefits negotiated by attorneys - most notably a phased-in increase and a pretty significant difference in savings for low-income customers - wouldn't be available.

At least a few council members said they are still upset with the attorneys for failing to explain the legal situation better, which might have affected their votes.

What do you think? A legal fight to the end might have a worse result, and cost hundreds of thousands of dollars or even over $1 million. It's possible that a protest vote, without further opposition, would still give Coatesville the benefits of the negotiation - but it's also possible that especially as the largest consumer, Coatesville's "no" vote would throw a wrench in the commission's acceptance of the settlement.

Should council accept the settlement in order to get the negotiated benefits? Should they continue the expensive legal fight? Or should they make the gamble of a protest vote?