House panel reviews private water system regulations in Eatonton
- Jacob Fried, a car wash owner, faced bankruptcy due to high water rates from Piedmont Water, including a $50,000 cost for water and sewer taps.
- Rep. Trey Rhodes proposed a bill to allow the Public Service Commission to regulate private water systems to ensure fair pricing.
- The committee will hear more testimonies on October 9, as they weigh the benefits and costs of regulating private water companies.
A House study committee in Georgia is reviewing the regulation of private water systems following complaints from customers of Piedmont Water in Eatonton. Jacob Fried, a local business owner, shared his experience of facing exorbitant costs, including over $50,000 for water and sewer taps, which ultimately led to his bankruptcy. This prompted Rep. Trey Rhodes to propose a bill that would empower the Public Service Commission to oversee private water systems, aiming to ensure fair pricing for consumers. Brent Hurst, COO of Piedmont Water, expressed concerns about the financial burden of regulation, estimating costs between $500,000 and $750,000 just to prepare rate case studies for the commission. Public Service Commissioner Jason Shaw noted that while regulation aims to establish fair rates, it can sometimes lead to increased costs for consumers due to guaranteed returns on investments. The committee is set to gather more testimonies on October 9 in Atlanta, as they consider the implications of regulating private water systems. The discussions highlight the tension between the need for consumer protection and the potential financial impact on private water companies. As the committee continues its work, the outcome could significantly affect the future of private water services in Georgia, balancing the interests of consumers against the operational realities of private utility companies.