Application for Transfer of Public Utility Franchise and Approval of Rates
of Crosby Utilities Inc. to Red Bird Utility Operating Company LLC

Docket No. W-1328 Sub 9, W-992 Sub 8

Red Bird Utility Operating Company, LLC, (Red Bird) and Crosby Utilities, Inc. (Crosby) have filed an application with the Commission for permission to transfer the water and wastewater utility systems and public utility franchise serving all of Crosby’s service areas in Wake County, North Carolina, from Crosby to Red Bird and approval of rates.

Crosby currently serves 290 residential customers in the Baywood Forest Subdivision (Baywood) and Cottonwood Subdivision (Cottonwood), with 210 water and wastewater utility customers in Baywood and 80 wastewater-only utility customers in Cottonwood. Upon acquisition, Red Bird plans to make capital improvements including replacing two deep well pumps and rehabilitating the 10,000-gallon pneumatic tank for the Baywood water utility system and installing a standby diesel generator and portable diesel generator at two separate lift stations for the wastewater utility system serving both subdivisions. The approximate annual cost associated with these capital improvements is $33.13 per month per customer for 25 years. Red Bird intends to request a rate increase about 14 months after acquiring Crosby. If the full amount of Red Bird’s projected rate increase were approved by the Commission, the average monthly bill charged to each customer for water service could increase to $73.44 in approximately three years for a customer using 1,500 gallons a month.

The Commission has scheduled a public witness hearing for January 23, 2023, at 7:00 p.m. to be held in Commission Hearing Room 2115, Dobbs Building, 430 North Salisbury Street, Raleigh, North Carolina. The purpose of these hearings is to take the testimony of customers regarding the transfer and proposed rates increase.

In addition, the public can file statements with the Commission by completing the webform found here or by mailing comments to the address below. In either case, be sure to include the docket number of this proceeding in your statement. After two or three business days, written comments become part of the official record and can be viewed via this website under the docket number.

The Commission has also scheduled an expert witness hearing for April 4, 2023, starting at 10:00 a.m. This hearing is for the purpose of hearing testimony from expert witnesses, including Red Bird, Crosby, and the Public Staff. There will not be an opportunity for citizen testimony at this hearing, but members of the public may watch the hearing via YouTube from a link that will be available on this website the day of the hearing. This hearing will be held in Commission Hearing Room 2115, Dobbs Building, 430 No. Salisbury, Raleigh.

The Public Staff – North Carolina Utilities Commissionis a separate agency that investigates utility matters and represents the using and consuming public in proceedings before the Commission including this one.


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