Tenants lose case in water rates

Grace Leong

Wednesday, Sept. 1, 1999 | 11:15 a.m.

The Public Utilities Commission of Nevada on Tuesday rejected a request that it regulate water rates charged by some apartment complexes.

The PUC said it declined jurisdiction over landlords that charge residents a flat rate for water and sewage services, ruling they are not public utilities. While for years Las Vegas apartment complexes did not charge residents for water, some companies are now charging tenants. They say this encourages conservation.

The PUC ruling left critics of the flat-rate system hoping the Legislature will become involved in the issue.

Tenants say it's unfair for them to pay rates for water and sewer service that are based on the square footage of their apartment as opposed to actual metered water use. Apartment complex owners say it would not be economically feasible to install water meters for each apartment.

Clark County Legal Services, which provides legal services to the poor, wanted the commission to regulate the apartment complex water programs.

"We are saying that the apartment complexes are acting like public utilities when they shouldn't because there is no statute that says they can charge for water and sewer services," said Monica Perez, a Legal Services paralegal.

While state law allows mobile home park operators to charge for water, there is no such statute covering landlords of residential complexes.

"We haven't had a chance to sit and talk with the tenants yet. But the commission said if it declines jurisdiction, it would recommend opening another docket or session hearing with the state Legislature to get the statute changed," said Terry Bratton, Legal Services administrative director.

"This is inconsistent with other statutes. We want the commission to recognize this as an issue, and either regulate every one or deregulate everyone and leave it to the Legislature," Bratton said.

The commission solicited comments from Legal Services and three national utilities associations in the wake of a request from Camden Property Trust for an advisory opinion on the matter. Camden owns and operates 42 Oasis residential apartment complexes in Southern Nevada that are home to more than 33,000 people.

Camden argued that even if landlords were considered public utilities, they would still be legally permitted to charge tenants reasonable amounts for water or sewer services.

It said its decision to charge its tenants water for services doesn't fall under the commission's jurisdiction because it isn't charging a mark-up for furnishing utilities and is passing through the charges for water services to its tenants on a pro-rata basis.

Camden also claims that Nevada's statutes say landlords and utilities are treated as separate entities, and it isn't a public utility because it doesn't have financial ability to provide such services or own water rights and other assets that utilities typically own.