Sharp increases in water bills surprise Loring businesses and residents

Tim McCabe, co-owner of The Bunker Inn, is one of several business owners and Loring residents who expressed concerns about the increase in water rates on Thursday. (Melissa Lizotte | Republican Aroostook)

LIMESTONE, Maine — Tim and Sandy McCabe were shocked when they recently learned how much their water bill will increase next year.

The couple owns and operates The Bunker Inn on the 3,800-acre Loring Commerce Center campus. Starting Jan. 1, they will have to pay about $5,340 per quarter to the Loring Development Authority for water use, with each of the four quarters equaling three months. The current bill is $1,700 per quarter.

“That’s $21,360 a year instead of almost $7,000 a year, a 300 percent increase for us,” Tim McCabe said during a Loring Development Authority board meeting Thursday. “It’s a big deal for a small company.”

The McCabes were two of many businesses and homeowners who spoke out against Thursday’s steep rate hikes and what they called a lack of communication from Loring leaders.

The Loring Development Authority’s new water and sewer fees took effect Oct. 1 after approval from the Maine Public Utilities Commission, though tenants won’t pay those fees until the 2025 billing cycle begins in January.

The new quarterly rates will charge $471.30 for at least 900 cubic feet of water use, whereas 2016-era rates charged $40 for a higher tier and an additional 40 cents for each additional cubic foot above 1,200. in accordance with the authority’s proposal to the Maine PUC. Other fees will increase based on the water meter size of your home or business, according to Loring PUC documents.

The increases were necessary because the authority hasn’t updated water rates since 2016, said Loring CEO Jonathan Judkins. These fees have not kept up with the authority’s expenses for maintaining the water system, which currently totals $990,200.

“I think a lot of the sticker shock comes from how we were chronically undercharging our fees,” said Judkins, who took on his role in January.

The authority began contracting with the Maine Rural Water Association for water system maintenance following the resignation of the previous system operator. That change led Loring leaders to begin exploring how to update the fare system in April.

The authority’s board approved the new rates in May, before sending the proposal to the PUC. Loring and PUC leaders approved a 50% subsidy so customers would only need to pay half their actual rate.

The grant will add $500,000 to the authority’s water and sewer expenses, which they hope the next Maine Legislature will agree to subsidize, Judkins said.

But for several Loring-based homeowners, the new fees are still a high price to pay amid a high cost of living, including for Gail Isabel, who told council members she expects her bill to jump 132, $80 per quarter to $855 per quarter.

“That’s over $3,200 a year, more than my property taxes,” Isabel said. “It is very harmful for seniors on fixed incomes. I only make $1,400 a month.”

Isabel and several others said the only notice about the new water and sewer rates came from model bills the authority mailed out this month.

Judkins said the authority followed all Maine PUC guidelines for notification of a public hearing held on the Loring campus in September regarding the new fees. They advertised in the local newspaper, on a local TV station, and sent written notices to all tenants.

All tenants who participated in the board meeting via Zoom on Thursday said they did not receive any written notice or other direct notice of the public hearing. Many also said they did not receive timely notification of a recent boil water order.

The authority is now collecting all tenants’ contact information and plans to test a new alert system that will include email messages and phone calls. They also want more timely posts on websites, which are managed by hired web designers, and will post both on social media and more traditional news sources, Judkins said.

Judkins and council members agreed to schedule another public hearing so Loring tenants can learn more about the new fees.