Rather than take the case to a full-blown trial, the rate case was mediated on Monday, a process that will most likely lead to all parties agreeing to terms by Jan. 8, according to Evan Jacobs of NMAWC.

Attending the mediation were representatives of the water company, the Public Regulation Commission staff, several intervenors and a few concerned residents. The intervenors included the town of Edgewood, as represented by Edgewood Mayor Robert Stearley and attorney David Henderson, and two residents, Kathy and Dennis May.

The town paid $11,000 to Henderson and his consultant to work on the case, an expense that Stearley said will most likely save residents money.

The town opposed the proposed rate increase of about 60 percent, which would raise the average water bill from $37 to almost $60, or about 80 cents per day, according to Jacobs.

After negotiations, all sides agreed on an increase of 44 percent, he said. The details of the increase still have to be worked out, however. Ultimately, the 44 percent increase will likely be an average, with those with conservative water use, less than 3,000 gallons per month, paying less per gallon and a system of penalties for additional water use.

During the mediation, the town brought up two issues about the proposed rates, one being that the utility was attempting to regain retirement funds it had lost when the stock market slumped recently.

Jacobs said that, according to federal law, the company is obligated to fund its retirement account.

"I think that's another thing that has to be examined carefully," he said. "Employee benefits like that are a legitimate cost of doing business."

The town also took issue with the cost of additional water rights being wrapped up in the rate hike, which could be considered a cost for expanding the business, not the cost for delivering water to existing customers.

Jacobs said his company's position is that new developments pay their own way, but that's where things can get complicated.

"We're doing the prudent thing and securing new water rights now," he said. "The new development investments come out in the wash."

The idea is that, by paying for water storage tanks and other infrastructure, the new developments will balance out the cost for additional water rights.

Stearley argued that the amount of water pumped by NMAWC this year has decreased compared with previous years, so it would seem that the company doesn't actually need the additional water rights.

He added that, during the mediation with experts on each side of the issue, it was Edgewood resident Kathy May who effectively argued to lower the proposed fixed rate monthly fees. The water utility had proposed to raise the fees from around $11 to over $20, but ultimately settled on a rate of $16.50 during the negotiations, Stearley said.