Utilities Ask to Bill for Security Fees
By DAVID B. CARUSO, Associated Press Writer
January 3, 2003, 4:49 PM EST

PHILADELPHIA -- A growing number of utility companies are asking states for
permission to add security fees to customers' bills to recover the cost of
protecting
themselves against possible terrorist attack.

A survey conducted last year by the National Regulatory Research Institute
and released
in November said at least 13 states had been approached by a utility for a
rate adjustment
related to security costs.

Last week, the Pennsylvania-American Water Co. told 600,000 customers that
it had
asked regulators for permission to charge 4 cents a day -- a total of $14.60
annually -- for
terrorism-protection measures.

The company said it will spend about $8.7 million this year on improved
security. Most of
the money will pay for more security patrols around reservoirs and
filtration plants.

"Since Sept. 11 we remain on heightened security and hope to recoup our
costs related to
security," company spokeswoman Joi Corrado said.

Natural gas supplier PG Energy is considering a similar move, spokeswoman
Donna M.
Gillis said.

"We are evaluating all our options to recover costs related to increased
expenses we incur
due to tightened security," she said.

The government, fearing that terrorists might try to sabotage power stations
or poison
water supplies, has urged utilities to beef up security -- at significant
cost.

The American Water Works Association, which represents water utilities,
estimates that at
least $1.5 billion is needed to protect water supplies alone.

Michigan's state Senate in December approved two bills that would let
electric utilities
impose fees related to anti-terrorism efforts, bypassing a moratorium on
rate hikes passed
three years ago.

Increases would still need to be approved by state regulators. The bills
await action in the
Michigan House.

http://www.newsday.com/news/nationworld/wire/sns-ap-terrorism-surcharge0103j
an03,0,1453495.story



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