The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, June 21, 1995               TAG: 9506200111
SECTION: ISLE OF WIGHT CITIZEN    PAGE: 03   EDITION: FINAL 
SOURCE: BY LINDA MCNATT, STAFF WRITER 
DATELINE: ISLE OF WIGHT                      LENGTH: Medium:   52 lines

COUNTY STUDIES NEED TO INCREASE RATES FOR WATER

The county has been buying up small, private water systems and is studying whether to raise rates for customers of its own water and sewerage systems.

The study is intended to recommend how to cope with expanded governmental regulations and increased operating expenses affecting the small water systems the Isle of Wight Public Service Authority has taken over.

The study was initiated when the county recently bought more than $800,000 worth of systems from Bob Majette, former owner of Tidewater Water Co.

Majette's systems served Carisbrook, Benn's Church, Bethel Heights, Rushmere, Sandy Mount Manor, Smithfield Heights, Tormentor Creek and a small subdivision off U.S. 17 north of Chuckatuck Creek. Negotiations between Majette and the county had been going on for about two years, authority Director Dave Murphy says.

But there was a big difference between Majette's systems, some established as long as 35 years ago, and the county's systems, Murphy says: Majette made money, where county-operated water systems often run in the red.

``Majette's were profitable because his rates were higher than ours,'' Murphy said in an interview late last week. ``The county systems have been running at a deficit. We are studying rates for everything we own right now. We're conducting a water and sewer rate study to establish rates that would make it a profitable operation''

It's not unusual for the county to get offers from owners of small systems that dot the county, Murphy said. And the deal with Majette prompted even more inquiries.

``The more regulating commissions are putting the bite on them, the less they want to stay in the business,'' Murphy said. ``Or the systems have gotten older and are in such poor shape it would take a major investment to bring the equipment up to standards.''

Private well owners must comply with the same regulations as municipal governments: fluoride, disinfection, monthly water samples.

``All of the reporting processes have really ballooned,'' Murphy said. ``There are a myriad of government regulations, both federal and state, that you have to comply with. The county is better equipped to deal with these regulations.''

The county already owns water systems in Gatling Pointe, Carrsville, Zuni, Thomas Park, Waterford Oaks, Hidden Acres, Smithfield Plaza, in the courthouse area and at Benn's Church development site.

``There is a possibility that county water customers will see an increase in rates in the future,'' he said. ``We would like to have a uniform rate throughout Isle of Wight.'' by CNB