Supreme Court sides with Avondale on water rate hike

The South Carolina Supreme Court overruled a circuit court injunction that has prevented Avondale Mills from collecting payment on July water bills issued to its customers without first being notified of an increase that, for some, was as much as 700 percent.

On average, the increase was at least 400 percent.

When Avondale customers received those first bills in July, there was a public outcry that has set in motion contentious debate among the customers, the state's Public Service Commission (PSC), Avondale Mills and the South Carolina court system.

Since that time, the customers have paid their August, September and October bills at the new rate but continue to rail against paying the July bills.

Members of the Aiken County Legislative Delegation have argued that Avondale customers should not have to pay the July bill at the increased rate.

By law, Sen. Shane Massey, R-Aiken, said, Avondale's customers should have received advance notice of the rate increase. They did not, he said.

The rate increase had been approved by the PSC more than a month before the bills were issued.

In response to the increase without notice, the legislative delegation and members of the public filed for an injunction on the July bills.

A circuit court granted the injunction, instructing Avondale that the new rates could not be charged until after July 31, when the customers were first officially notified, Massey said.

Avondale appealed the circuit court ruling to the state Supreme Court, which ruled Thursday in Avondale's favor.

The Supreme Court ruled that the circuit court had no jurisdiction on the issue.

Any appeal must first go to the PSC.

The delegation had sent two letters to the PSC in August, arguing in one that the increase was not properly publicized and in the other that the fee increase was not reasonable.

A week later, the PSC ruled that the rate increase was reasonable, but they did not address the issue of proper notification, Massey said.

On Friday, the legislative delegation and representatives from the public drafted another letter to the PSC.

"The goal is to get the July bills billed at the old rate," Massey said.

Officials are still in the process of negotiating with the Valley Public Service Authority (VPSA) to transfer the system from the former mill owner.

Contact Karen Daily at kdaily@aikenstandard.com.