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Bar Harbor council adopts revised water-rate structure, citing $3.2 million system cost; measure contingent on PUC approval
Summary
After a public hearing, the Bar Harbor Town Council voted 6-1 on Feb. 17 to adopt an amendment to Chapter 201 adjusting water rates and moving to a tiered structure; the change is contingent on approval by the Maine Public Utilities Commission and prompted concerns from seasonal residents about fairness and conservation incentives.
The Bar Harbor Town Council voted 6-1 on Feb. 17 to adopt Order 2026-02-06, an amendment to Chapter 201 that adjusts the town’s water rate structure and rates as part of a Public Utilities Commission (PUC) rate filing. Councilor David Kief cast the lone “no” vote; the measure is contingent on PUC approval under Title 35-A MRS §6104.
Town Manager James L. Smith told the Council the system “costs approximately 3.2 million dollars per year to run, of which about 2 million dollars are fixed costs such as debt service and staffing that must be paid just to have the system ready to deliver water.” He said those fixed costs remain even if consumption falls and that the proposed structure shifts relatively more of the total cost to larger meter accounts.
Finance Director Sarah Gilbert explained the revenue distribution behind the proposal, saying that “70% of the meter accounts are residential but generate only 40% of the metered revenue, while 30% of users generate nearly 60% of the metered revenue,” and warned that a flat-rate approach would significantly increase residential bills. Public Works Director Bethany Leavitt said the tiered structure reflects meter size and demand and noted the system’s aging infrastructure and a current unaccounted-for water rate of about 20%.
Six residents spoke during the required public hearing portion of the meeting, raising questions about why seasonal customers face higher effective rates and whether a tiered structure discourages conservation. The commenters were Mary Jane Whitney, Kevin Knopp, Sharon Knopp, Katherine Whitney, Tom St. Germain, and Brynna Golden.
Council debate focused on the allocation of fixed costs, meter-size impacts, and the risk that lost consumption or a large departing user could leave the system short of revenue. The Council approved the order on a roll-call vote (yes 6, no 1). The Council’s adoption is explicitly contingent on PUC approval of the rate case; the ordinance amendment would be operative only if the PUC authorizes the underlying rates.
Next steps: the town will proceed with the PUC filing process and return to the Council with any final implementation details after the PUC acts.
