Beth Rumsey, Staff Writer

Customers of the Holton Rural Water and Napoleon Rural Water companies can expect to see their water bill increasing in the coming year. According to Holton Water Board President Owen Menchhofer, the increase could be approximately 27 percent.

The Osgood Town Board unanimously approved to introduce ordinance 2008-14, which will increase water rates for Osgood retail customers three percent, but will also raise the rate for the wholesale customers. As the towns of Holton and Napoleon purchase water from Osgood, they are considered wholesale customers.

According to Napoleon Rural Water Company office manager Darlene Volk, the same rate was charged to all of Osgood Water Company’s customers until 2003. It was in May of that year that Holton and Napoleon were considered to be wholesale customers with the rate increasing more than 20%, with no increase to the retail customers. “I thought that paying wholesale meant paying less,” said Volk.
Holton has approximately 1000 customers and purchases 3-4 million gallons of water each month.

Napoleon’s 1400 water customers purchase approximately 7 million gallons per month with a service area as far as Newpoint, Enochsburg, and parts of Batesville. According to a notice sent to the water companies from the Town of Osgood, the proposed wholesale rate to be charged will be $3.63 per 1,000 gallons of water. The current rate is $2.85 per 1,000 gallons.

For Napoleon that will be an increase of $5,500 per month for the water company, with Holton expecting to pay almost as much. “We can’t help but pass this on to our customers,” said Menchhofer.
“We understand that there’s a need for a rate increase,” Menchhofer continued, “but feel it needs to be fair and equitable.” Volk agreed, “We would like an explanation of why wholesale (customers) will pay more.”

While the Holton Water Board is unsure how much of an increase their customers will incur, they are afraid that the percentage will be more than the 27%. According to Linda Tieman, office manager for the Holton Water Company, there will be an additional cost to update the current software to reflect the changes that will occur in February 2009.

“We are a non-profit organization,” said Menchhofer. “We don’t have any money put aside to help with these costs.”

Volk is unsure how much of an increase will be charged to the Napoleon customers, that will be determined at the next Napoleon Water Board meeting to be held on Wednesday, December 17. She said that the last increase that took place in 2003 was not passed on to the customers, and does not expect to pass on more than 27% when the new rates begin. “We can’t continue to operate unless we raise our rates,” she said.

Both Holton and Napoleon companies are a distribution system. All water purchased from the Osgood water treatment plant goes directly to their respective water towers.

There will be a public meeting on Tuesday, December 16 to consider and adopt Ordinance 2008-14 at the Osgood Town Hall beginning at 7 p.m. Members of the Holton Water Board plan to attend to discuss the wholesale rate increase. “We encourage all of the Holton and Napoleon water customers to attend,” concluded Menchhofer.