CHARLESTON, W.Va. — The state consumer advocate will fight against attempts by West Virginia American Water Company for a surcharge on its customers’ bills in a two-day evidentiary hearing scheduled to begin Wednesday before the state Public Service Commission in Charleston.
Consumer Advocate Jackie Roberts tells MetroNews she doesn’t believe state law gives the PSC the jurisdiction to approve surcharges for water utilities and it’s not right to change the current regulation pact that allows utilities to collect money from customers after their projects are completed not before.
“We have a way of making rates in West Virginia that considers all the company’s investments and costs not just certain of them that are separated out for special recovery,” Roberts said. “I don’t think it’s wise for customers to pay up front for these kinds of investments when the utility is supposed to invest its own money and then some time later recover it from customers.”
The proposed surcharge, an increase of about 89-cents a month on the average customer’s bill, will pay for $32.5 million in projects West Virginia American Water had planned 2016 and 2017. The company says the surcharge would allow it to more quickly replace aging water lines than the current recovery process.
Roberts said that’s not the way it should work.
“They’re asking the customers to pay up front for investments instead of the company having to use its own money first,” she said.
Roberts’ jurisdictional argument is based on Senate Bill 390 that made a way for natural gas utilities to have a surcharge approved but not other utilities, Roberts maintains.
“The electric companies and water companies don’t have that. If the legislature had wanted West Virginia American Water to have that special rate-making treatment it would have said so–it didn’t,” Roberts said.
The PSC staff has supported the surcharge in previous filings in the case saying the company’s infrastructure issues need addressed as quickly as possible.
The PSC approved a base rate increase for West Virginia American Water in February totaling $18.2 million.