Feb 28, 2007 By Joyce Koballa 3 min read

DUNBAR TWP. – Customers of the Redstone Water Company’s former Royale Division should start receiving water service directly from the North Fayette County Municipal Authority within the next month. The change in providers is the result of a $110,000 acquisition by North Fayette that should be finalized sometime in April between both entities.

With the purchase of the Royale Division, North Fayette picked up 105 new customers in the areas of Smock, Grindstone and Rowes Run.

Bob Softcheck, authority manager, said the deal would actually save those customers around $30 per quarter since Redstone previously purchased water for that area from North Fayette at a cost of $1.80 for every 1,000 gallons and passed that rate on to its customers, charging them $3 for every 1,000 gallons.

While those customers will continue to be billed monthly, Softcheck said every other month would be estimated.

After the deal with Redstone is finalized, Softcheck said the authority would contact customers to schedule an appointment to install updated meters and reading devices in their residences so the meters could be read from the street.

“This method makes reading easier and faster and is one of the ways we can keep the cost of our water at one of the lowest levels in the state,” said Softcheck.

However, if the service line entering the customer’s house is in poor condition, Softcheck said the authority would determine if a new one needs to be installed, which would be at the customer’s expense.

Softcheck reminded customers not to let anyone inside their home if a call for water service was not placed and instead contact 911.

“If a service call is expected, proper identification should be presented by the water utility employee before allowing them into a home,” said Softcheck.

Softcheck added that all of North Fayette’s employees have a photo ID.

In a separate matter, the authority agreed to a proposed water rate increase that would take effect this summer in amounts ranging from $1 per month to $10,202 per month depending on the amount of water usage.

North Fayette provides water service to 14,591 customers in Fayette and parts of surrounding counties, with the last rate hike in 2003.

According to the proposed increase, customers using 5,000 gallons of water per day would see a $1 increase on their monthly bill, while other increases included $2 for 10,000 gallons of water, $5 for 15,000 gallons, $8 for 20,000 gallons, $14 for 40,000 gallons, $32 for 100,000 gallons, $152 for 500,000 gallons, $902 for 3 million gallons and $10,202 for 34 million gallons.

Softcheck said he based those figures on the authority’s current three-tier rate structure that represents consumption charges per 1,000 gallons depending on the size of the meter.

“A lot of consumption in the past was from Pennsylvania American Water Company (PAWC) purchasing bulk water enabling us to sell water at a lower rate,” said Softcheck.

Since that purchase has dropped off considerably because PAWC is either purchasing from neighboring water purveyors or acquiring others, Softcheck said North Fayette was forced to raise its rates.

Paul Kendi, authority secretary, said he was concerned about the effect the increase would have on bulk purchasers such as PAWC and Indian Creek Valley Municipal Authority as far as future water sales.

“We learned from history they’re only going to buy water from us if they’re in dire need,” said Kendi.