CHARLESTON, W.Va. — The largest water utility in West Virginia filed the specifics of a previously announced rate increase case with the state Public Service Commission Thursday.
West Virginia American Water Company, which serves 550,000 state residents in more than 30 counties, is seeking a 28 percent increase on its water customers that would result in an additional $35.5 million. If approved, the average residential customer would pay about $11.63 more a month for water.
WVAWC said the general rate increase would help it pay for $105 million in system improvements that began in 2012 with another $98 million in planned improvements.
“The rate request is primarily driven by the capital investments we have made to maintain and upgrade our infrastructure while creating new jobs,” WVAWC President Jeff McIntyre said in a company release. “The local and national trend of declining usage is also a factor in this filing. The request also includes reduction in operations and maintenance expenses by $1.1 million compared to the last rate filing, and the current levels of operations and maintenance expenses are in fact at the lowest levels since 2010.”
The company said it is upgrading its distribution system, water treatment facilities, water tanks and pumping stations.
McIntyre said the rate hike request does not include the company’s costs associated with the 2014 Freedom Industries chemical spill into the Elk River in Charleston that contaminated the water system. He said the water company continues to track costs of the event and will make a separate filing with the PSC at a later date. The company has said it’s already spent about $12 million.
The state Public Service Commission will have 300 days to make a decision. There remains a position open on the three-member commission. Gov. Earl Ray Tomblin’s Communications Director Chris Stadelman told MetroNews earlier this week the governor continues to look for the “right fit” for the panel.
There is an existing West Virginia American case before the PSC having to do with the commission’s general investigation with how the company responded to the chemical spill and resulting water emergency but nothing can be decided on the case until a third commissioner is named. PSC Chairman Mike Albert has recused himself from the investigation case because he used to represent the water company before he became a member of the PSC. Albert has not previously recused himself from WVAWC rate cases and it’s not anticipated he would do so with the latest case.
WVAWC spokesperson Laura Jordan told MetroNews earlier this week the company is looking forward to getting the general investigation case wrapped up as soon as possible.
“We certainly would like to see this case move forward and not continue to drag out,” Jordan said. “The testimony we filed in the case provides detailed information regarding West Virginia American Water’s response to the Freedom Industries spill. It outlines the company’s response as a constantly developing process, marked by quick reactions, extensive coordination with government and regulatory agencies, and a rapid mobilization of public and private resources. We are confident that our responses and efforts to eliminate the substances released by Freedom Industries from our distribution system were appropriate, direct and diligent.”