The Issue
There are TWO water rates and grades of water for Millcreek residences and businesses, depending on where they are located in Millcreek. The Millcreek Water Authority buys water from Erie Water Works, blends it with well water in certain areas, then sells it at rates that are up to 70% higher than the rates paid by Millcreek residences and businesses who are direct Erie Water Works’ customers.
On September 14, 2006, a task force was formed. This group consists of Millcreek business owners and residents and its goal is to work towards providing all Millcreek residences and businesses served by the Millcreek Water Authority with the same low water rates currently provided to Millcreek residences and businesses served by the Erie Water Works. This is an issue of basic economic fairness for all Millcreek residences and businesses, and addressing it is also a critical step towards maximizing the vibrancy, growth, wealth, cost effectiveness of services and quality of life of the entire Erie regional community, both now and in the future.
There are approximately 16,000 Millcreek residences and businesses that consume water. 6,000 pay the higher Millcreek Water Authority rate, and 10,000 pay the lower Erie Water Works’ rate.
The Mediation Issue
The Millcreek Water Authority and the Erie Water Works are currently engaged in mediation over a disagreement concerning rates. No matter what the mediator’s findings indicate, the following is fact:
Without change, Millcreek Water Authority’s rates will never be as low as Erie Water Works’ rates. For this to happen, the Erie Water Works would have to charge the Millcreek Water Authority 62 cents per 1,000 gallons of water. It costs the Erie Water Works close to 60 cents per 1,000 gallons for treatment alone. From there, the cost is increased to cover electricity to pump the water, labor, maintenance, etc.
Quotes From Residents Who are
Millcreek Water Authority Customers:
“Our home is only a few years old. However, we don’t drink the water because of the well mixture from the Millcreek Water Authority. It tastes terrible. So, my wife and I buy the service with the large jugs for us to drink and we have to buy bottled water with fluoride in it for our toddlers.”—A Millcreek Dentist
“I wish we could relocate our business. Not only is the cost of Millcreek Water Authority water way too high compared to water in the areas of Millcreek served directly by the Erie Water Works, the well water has cost us thousands of dollars because it has caused problems with our machinery and equipment.”—Operator of large Millcreek business
“I do not care who provides my water. It does not matter whether it is Erie Water Works or the Millcreek Water Authority as long as I am receiving the highest quality, best service and lowest price available. I would be outraged if I were charged more for natural gas, gasoline or electric than another business. This situation is no different.”—Owner of a large Millcreek business
If businesses leave Millcreek Township because of this problem, the loss of the taxes they now pay will be passed on to all remaining Millcreek residents and businesses. Then, everyone in Millcreek Township will pay for this problem.