Wednesday, Feb 13 2013 3:46PM

Residents in Keene, California, may see water rates surpass monthly mortgage costs.

Residents of Keene, California, are battling the California Public Utilities Commission and Union Pacific Railroad to eliminate a measure that would more than triple the amount residents pay for access to the town's water system services, according to Tehachapi News. 

The two businesses own the Keene Water System, and if rate hikes go through as planned, many residents will find their residential water bills rising to more than $600 per month, compared to the national average of $50, the newspaper explains. Keene resident Erik Jacobs projects his water bill will increase to $1,500 per month, an amount that exceeds his monthly mortgage payment.

The railroad has cited high operating costs that exceed the revenue they make from residents as the reason for the hike. However, Jacobs notes that the proposed prices will be more than most residents can afford.

"Raising more revenue is the ostensible rationale for the rate increase, however, it is not reasonable to assume that it will raise more revenue for the utility," Jacobs wrote in a letter to Union Pacific, the newspaper said. "In fact, such an unaffordable rate increase would have only one effect - significantly decreasing customer participation in the water system."

Ownership of town water systems by specific groups has been a cause for concern in recent months. When groups or organizations control small town water systems upon which residents depend, they often have more flexibility in raising rates, selling to other companies or imposing burdensome water rules. 

For more information, check out this resource: The Tehachapi News