Local activist Michael Hartman refers to company as ‘golden goose’
Many residents of Greene County, with its lofty and expensive gated communities, have shared common complaints about Piedmont Water Company, the county’s only water and sewage system in place, and it is not pretty.
They complain of poor customer service, unaccountability, unaccounted charges, water quality, and more importantly, what hits their wallets – water and sewer rates.
Newly introduced HB 1220, put forth by State Rep. Trey Rhodes, would challenge that.
A successful online petition drive initiated by Reynolds resident Michael Hartman and supported by Ernie Filice, District 4 County Commissioner among others, resulted in what appears to be a successful effort.
Residents heeded the call, and thousands of signatures called for oversight of Piedmont Water Company by the Public Service Commission (PSC). It is seen as the first step to combat what some describe as price gouging by Piedmont.
A hearing was held in Atlanta on Feb. 20 with the Energy, Utilities, and Telecommunications Commission, a committee of the Georgia House of Representatives.
“The bill is simple,” Rhodes said. “We are looking at private utilities to provide fair and reasonable rates. Water is such an important necessity of life, and we all want to be sure billing is fair. We need to be sure pricing is proportionate and get some sanity into the system.”
An analysis showed that Piedmont rates are two-and-a-half times higher than the state average in a county largely rural and approaching a population of roughly 20,000 residents.
Last year, water rates jumped another 25 percent, and sewage rates have increased in tandem. An average water and sewage bill for a resident in the state runs $62 per month, and Piedmont charges are roughly $155 based on an average monthly use of 5,000 gallons.
Its water quality has been of concern, as well as a documented sewage spill last year dumping 260,000 gallons of sewage. A new treatment plant built in Reynolds has already brought complaints.
Patience for Piedmont, a monopoly of a key utility in the county, has worn thin. Piedmont customers claim the utility holds its customers hostage to having little recourse for complaints and rates. Established in 1992, Piedmont Water serves thousands of customers, with at least 5,000 in Reynolds alone. Sewage customers are more than 4,000 throughout the county.
Piedmont claims it started servicing the county when the city of Greensboro refused to provide services of its systems. Piedmont has now become one of the largest providers of water and wastewater systems in the Southeast, with 70 permitted water systems and six sewage treatment facilities. Two of these facilities reside within Reynolds.
Jerry Shaifer is the CEO and was present at the meeting. He stated the company presently owns 83 permitted water systems, primarily in rural areas. The state has more than 567 such systems.
Hartman remained unsympathetic and referred to Piedmont Water as “Robber Barrons.” He told the commission of his experience, which he said closely mirrors many of his fellow residents and others in neighboring communities.
“I moved here in 2021,” Hartman said. “We had an initial bill of $20,000 to connect and for a meter. I have lived in several other places, and my water bill was never over $100 a month. Now, I average a routine bill of over $400 in the summer alone. Essentially, they have been given the goose laying the golden egg and squeezing the hardest they can. They are taking advantage of their position to extract profits at the expense of tens of thousands of customers.”
Jacob Freid, owner of Suds Club, a car wash company in Putnam County, recounted his experience with the utility, which prompted them to file for bankruptcy. After having paid an $80,000 bill to connect to the system, another bill arrived asking for an additional $57,000 as an impact fee with no supporting documentation.
An additional $14,000 was billed for a meter, and the business was presented with yet another bill for an extra $100,000 for “using more water than initially told in an application to Piedmont.”
“It has been devastating to our business, where we were incurring upwards to $15,000 a month in water bills alone,” Freed said. “In the three years, we have seen a 30-percent increase in water and a 20-percent increase in sewage rates. We are begging you to help us and protect our community and small businesses here.”
Filice has been a big supporter of the effort and made similar appeals to the state commission. It centered on the need for Greene County to remain economically feasible for new businesses and to attract affordable housing.
“To remain economically viable, the county needs to attract both new businesses to the area and provide affordable housing,” he said. “I am here because of my constituents, and I can tell you every time I am in a store, church, or somewhere else, people approach me with concerns over Piedmont Water.”
Filice went on to say that the county gets “the drumbeat” often from businesses who remain interested in Greene County but cannot afford the tap-on fees.
The county has sought a legal review of the concerns about Piedmont but has found there is no legal option to fix it. He stated the only remaining option for remedy is state legislation. The county estimates it would cost more than $200 million if the county were to take over the servicing of water and sewer services.
He further added that Piedmont does not pay for its water that is pulled from Lake Oconee but recognizes infrastructure costs. Due to the ever-increasing dissatisfaction in the county with Piedmont, he asked that the bill move forward and to vote in favor of its passage.
Although the committee heard from Tom Bond with the PSC that, if passed, there would be a great need for additional resources and staffing to facilitate such a request, the Commission members present voted in favor of the bill. It next moves to a Rules and Regulations commission before going to the general Georgia Assembly for a vote.