LYNN – Local homeowners facing high heating oil prices and other ominous economic news can take some comfort in the Water and Sewer Commission’s tentative plan to peg a projected rate increase at 3 percent in 2009.”Hopefully, we can stay in that range,” Commission Executive Director Daniel O’Neill said.A 3 percent increase in the current combined rate of $8.88 translates into about a $26 rate hike for the average homeowner using 10,000 cubic feet of water a year to pay about $888.The commission raised the water and sewer rate from $8.66 during the summer and the five commissioners will not review a budget or vote on a rate hike before next spring.By contrast, rate information provided in 2007 by the Massachusetts Water Resources Authority indicated that residents in MWRA member communities like Nahant pay over $1,400 a year in water and sewer rates.Peabody residents paid about $578 in combined rates last year.Local rate-payers have seen their share of recent sharp rate hikes including a 14 percent increase in 2006 and an 11 percent jump in 2007.Water and Sewer officials have blamed the need for rate increases on declining water use and rising costs including health insurance and fuel expenses combined to spur the hikes.The commission has to consider the amount of debt Water and Sewer is paying interest on and the cost of future construction projects as it weighs prospective rate hikes.State officials are scheduled this fall to finish reviewing rates and other factors influencing Water and Sewer’s plan to spend $65 million on storm and sewer pipe networks.Creating a separate storm and sewage pipe network called a CSO is crucial to helping the Commission meet a 2009 federal deadline for reducing sewage discharges into the ocean.A single system carrying sewage and storm water during heavy rains has the potential of overwhelming the treatment capability of the Commercial Street plant so that partially treated sewage ends up in the ocean.Much of the CSO work required in East Lynn has been completed or is underway. More work needs to be done in West Lynn; downtown and around the Commercial Street.