Company cites investment in infrastructure as reason for high water, sewer rates

It was clear at last month’s meeting of the Georgia House of Representatives Energy, Utilities, and Telecommunications Commission in Atlanta that Jerry Shaifer felt he was in the hot seat.

Shaifer, CEO of water and wastewater management of Piedmont Water Company, was present to review a bill brought forward by State Rep. Trey Rhodes for regulation of Piedmont Water by the state’s Public Service Commission.

Piedmont Water is the county’s only water and wastewater management utility in Greene County. They lack oversight by the state, making Georgia one of only eight states in the nation that do not have state regulation by the Public Service Commission for rate management. 

Greene County is one of 14 counties served by the utility, with Reynolds being the largest customer base in the county with a combined sewer and water customer base of 7,000 residents.

Shaifer stated Piedmont Water is privately owned, with the majority of shareholders being family members. He said the company funds itself through private investment capital and that Piedmont filled the void for the county when the city of Greensboro denied the county’s request for service.

Shaifer started his comments about Reynolds and the county being a very affluent and highly desirable area and being proud to serve it. 

Additionally, the company serves retail and other service-based companies in a county that is experiencing rapid growth and development. In earlier years, Piedmont served the county through several wells and acknowledged complaints at that time.

“We used our capital two years ago when the Division of Natural Resources (DNR) requested that we serve the area with surface area treatment. We made a $20 million investment to upgrade systems and expand what we currently have in Reynolds alone. We currently have two such systems in Reynolds, eight systems total across the state, and service 14 counties.”

According to Shaifer, Piedmont ran its pricing through a regulated model with Reynolds in 1987, but it was amended through tough negotiations with Metropolitan Life, which acquired the community in 2012. 

Shaifer stated the company is working on both expanding and improving its infrastructure to keep pace with growth and that alone is subject to increased pricing. He also stated that, due to the rapid growth, they have to advance considerable capital to meet needs resulting in higher rates.

Shaifer said the company is “agnostic” about the issue and would not oppose the legislation if it moves forward. However, he added that, depending on how the bill was structured, homeowners in Reynolds would probably experience higher rates with lower rates in other less affluent areas.

The Lake Oconee News reached out to Piedmont asking for comment about the pending legislation, high rates in the state, and shareholder and profit disclosures and finances.

Through a spokesperson, Piedmont said the cost of providing water and wastewater is rising nationwide, along with urgent infrastructure demands that require balancing affordable rates while spending significant capital. They insisted this was necessary to maintain and expand the current systems in place.

Last year, the company made significant strides as the first private company to build, own, and operate a surface water treatment plant in the state, located inside Reynolds, according to the spokesperson. 

Over the past five years, Piedmont Water said it has spent more than $20 million on vital improvements and major sewage system upgrades.

The company predicts in the next two years it will invest more than $30 million into the lake community to support continued growth and economic development. Through these private investments, Piedmont says it has helped the community flourish by extending services to underserved areas where municipal utilities aren’t available.

Piedmont Water said it understands the concerns of the community and is committed to increasing transparency and communication with its customer base to ensure an understanding of the many factors that contribute to rates.

Piedmont stated it remains neutral on the bill but feels legislation isn’t always the answer. Regardless, the company said it will embrace the outcome and is prepared for what regulation may bring.

The state is also considering a bill presented this year that would create a consumer advocacy director for the Public Service Commission.