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Blue Ridge Supervisor Billy Martin spoke with Aqua Virginia several weeks ago.

Blue Ridge Supervisor Billy Martin is holding a Town Hall Monday October 26 at 7 p.m. at Rainbow Forest Baptist Church sanctuary meeting on the proposed water rate increase Aqua Virginia has requested from the State Corporation Commission.

He has detailed  below what he finds wrong with the proposed 69% increase and believes the water customers in his district need to knowAqua Virginia Inc.

What is going on?
• Aqua Virginia Inc., has petitioned the VSCC for a 69% rate hike in your water rates in June 2009. Aqua has asked the SCC to consolidate rates for their customers. Regardless where they live, all will pay the same rate. (NOVA vs. Botetourt) Wage scales in NOVA are much higher than this area. We should not be burdened with this increase.
History on rate increases:
• Rate increase in 2005
• Rate increase in 2007

Facts about Aqua Virginia Inc.:
• Filed petition for a $3.2 million increase

• Equates to $18.00 per month per customer or $216 increase per year

• Aqua has Invested $44 million across Virginia to improve water and wastewater systems

• At $18 per month increase for Botetourt customers, the $1.3 million investment would be paid off in 2 ½ years

• Only $1.3 million invested in Botetourt County or 2.95% of the total invested

• $42.7 million of your investments have been outside Botetourt. Botetourt customers should not have to pay for these investments

• Botetourt residents SHOULD NOT be burdened by paying $42.7 million invested somewhere else

• Had rate increase four (4) years ago (approximately 60% or better)

• In 2008, Aqua reported revenues of $627 Million with $98million in "net income" or profit

• Aqua is not a mom and pop company that is struggling to stay afloat
• does Aqua have accounts budgeted for capital expenditures?

• If it has these accounts, why have officials at Aqua approved this spending? You said it was for improvements, not necessity. To spend $44 million and then ask your customers to pay is irresponsible.

• Why should we, your customers, have to pay for improvements Aqua made without first asking for approval from the SCC?

• Aqua states rate increases a way to provide a way to recover capital and operating dollars to improve? So is planning and setting aside capital to do this
Comments:

• Aqua wants this increase and still profit from existing rates.

• My opinion is that Aqua has overextended spending capabilities and now asking their customers to bail them out.

• Received a letter from constituent Rick Harvey stating that rates increased by 40%in 2005

• Aqua sent a letter to it's stockholders boasting of the company's ability to grow earnings despite recent unfavorable weather and economic conditions. How do they have ten (10) consecutive years of increased profits? Well, Aqua contributes this "to the company's ability to "recover capital investments through timely rate relief" IN OTHER WORDS, put this burden on the ratepayer through unreasonable and preposterous rate increases.

• Aqua has stated that the Joint Petitioners have said the merger is in the best interests of ratepayers because it facilitates increased efficiencies of operation; allows for more efficient and less costly oversight; and results in a reduction of accounting costs and increased economies of scale. The Joint Petitioners have further alleged that the merger will allow Aqua America and Aqua Virginia to maintain rates at more reasonable levels in the long term. How hypocritical!

• In my opinion, this is irresponsible, unwarranted and outrageous

• Again, in my opinion, this proposed increase is unwarranted, unfair to Botetourt County and simply put, OUTRAGEOUS.

• If Aqua gets this increase, they will pocket millions of dollars above what it needs for Capital improvements. With almost $100 million in profits last year, Aqua could have easily absorbed the $44 million it said they have invested in improvements.

• A company already making $100 million a year in profits should not grow fatter by stealing from the citizens it is allowed to serve.

• Aqua told the VSCC "Aqua represents that adequate service that just and reasonable rates will not be impaired or jeopardized." They further represent that the acquisition will benefit the water companies customers in that Aqua Source plans to provide system improvements with out a change in the current water rates".

• Statement from Bryn Mawr- Aqua America Inc. (NYSE:WTR) Today reported results for the quarter ending March 31, 2009. net income for the quarter rose to $18.4 million from $14.3 million in 2008, an increase of 28.3 %. Revenues rose from $139.3 million to $154.5 million or an increase of10.9 %. Corresponded diluted earnings per share for the year were $0.14 compared to $0.11 for 2008. This is pretty good for a bad economy.
State Corporation Commission
P O Box 1197
Richmond, VA 23218
Telephone # 1-800-552-7945

Do you want to oppose this rate hike?

What direction do we take?
• Letters to the VSCC
• Telephone calls to the VSCC
• Petitions signed by customers
• Attend VSCC hearing
• All correspondence shall refer to Case No. PUE-2009-00059.