PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 22-0857-PSD-CN (REOPENED)
NORTH BECKLEY PUBLIC SERVICE DISTRICT
Application for a certificate of convenience and necessity
to construct a Wastewater System Upgrade Project (Part A),
Raleigh County
NOTICE OF FILING
In a Decision that became Final on January 29, 2023, in this matter, the Public Service Commission granted the North Beckley Public Service District (District) a Certificate to construct its Wastewater System Upgrade Project (Part A) at a total project cost not to exceed $4,913,000 (Project). The District did not request to raise rates to support the Project. However, due to the receipt of construction bids in excess of the estimated Project construction cost, the Applicant has requested that the Commission authorize revised Project funding and approve a Project-related rate increase.
The Project includes upgrading the capacity of the Sprague Lift Station and Forcemain to reduce the number of spills in the Sprague area of the existing sewer system in accordance with WVDEP Administrative Order No. 8632.
The application is on file with and available for public inspection at the Public Service Commission, 201 Brooks Street, in Charleston, West Virginia.
The District originally estimated that the Project cost would be approximately $4,913,000, to be funded by a loan from the Clean Water State Revolving Fund (CWSRF) in the amount of $3,778,000 with a 2.75% interest rate and a 0.25% annual administrative fee, for a term of 20 years; a West Virginia Infrastructure and Jobs Development Council (IJDC) soft costs grant in the amount of $60,000; and a CWSRF design loan in the amount of $1,075,000.
Based on construction bids received the Project will cost $7,016,000, and will be funded with a CWSRF loan in the amount of $5,716,000 with a 2.75% interest rate and a 0.25% administrative fee, for a term of 20 years; an IJDC soft costs grant in the amount of $60,000; an IJDC bid overrun grant in the amount of $165,000; and the previously closed CWSRF design loan of $1,075,000.
The District anticipates charging the following increased sewer rates for its customers:
SCHEDULE I
RATES (customers with metered water supply)
First 2,000 gallons per month $11.81 per 1,000 gallons
Next 23,000 gallons per month $10.14 per 1,000 gallons
Next 25,000 gallons per month $ 6.78 per 1,000 gallons
MINIMUM CHARGE
No bill will be rendered for less than $23.62 per month, which is the equivalent of 2,000 gallons of usage.
These rates represent the following project-related increases (dollar amount shown on a monthly basis) that will become effective upon substantial completion of the project, unless otherwise ordered:
($) INCREASE (%) INCREASE
Residential (3,395 gal. avg.) $ 2.36 10.00%
Commercial (31,179 gal. avg.) $18.71 10.00%
Public Authority (30,812 gal. avg.) $26.91 10.00%
The District has no resale customers.
The proposed increased rates and charges related to the project will produce approximately $258,703 annually in additional revenue from current rates, an increase of 10%. The total increase granted will not exceed this estimate unless further notice is provided.
The increases shown are based on averages of all customers in the indicated class. Individual customers may receive increases that are greater or less than average. Furthermore, the requested rates and charges among the various classes of customers are only a proposal and are subject to change (increases or decreases) by the Public Service Commission in its review of this filing.
Anyone desiring to protest or intervene should file a written protest or request to intervene within 10 days following the date of this publication unless otherwise modified by Commission order. Failure to timely protest or intervene can affect your right to protest aspects of this certificate case, including any associated rate increases, or to participate in future proceedings. All protests or requests to intervene should briefly state the reason for the protest or request to intervene. Requests to intervene must comply with the Commission’s rules on intervention set forth in the Commission’s Rules of Practice and Procedure. All protests and interventions should be addressed to Executive Secretary, Public Service Commission of West Virginia, P. O. Box 812, Charleston, West Virginia 25323.
In the absence of substantial protest received within thirty (30) days of this publication, the Commission may waive formal hearing and grant the application based on the Commission’s review of the evidence submitted with the application.