THE COUNTY COMMISSION OF LOGAN COUNTY NOTICE PURSUANT TO WV CODE 16-13A-9 RE: LOGAN COUNTY PUBLIC SERVICE DISTRICT PROPOSED GOING-LEVEL RATE INCREASE, APPROVAL OF A WATERLINE EXTENSION PROJECT AND THE PROPOSED RATES, FEES, AND CHARGES TO PAY COSTS ASSOCIATED WITH THE WATERLINE EXTENSION PROJECT
NOTICE is hereby given that Logan County Public Service District (the “District”), a public utility, on June 21, 2022, adopted a resolution to increase its rates, fees, and charges for furnishing water service to approximately 10,167 customers in Logan County and parts of Lincoln County, Mingo County, Boone County, and Wyoming County, all in West Virginia, including the District’s one resale customer: Chapmanville Water Department, and to approve a waterline extension project. On July 7, 2022, the District provided written notice of its decision to establish new rates, fees, and charges for water service to The County Commission of Logan County (the “Commission”).
The Step 1 rate increase is not related to projects or any expansion but will be a going level increase to pay for increased operating expenses including but not limited to electricity, chemicals, parts replacement, pumps, pipe, fuel and other items necessary to keep the District’s water system operating properly and within State and federal requirements, paying the debt service on outstanding bonds and complying with State law requirements including reserves. Since the last rate change, State law requirements for working capital reserves have increased significantly. The last rate increase took effect May 31, 2018.
The Step 2 rate increase will generate money to pay projected increases in operating costs, including but not limited to electricity, chemicals, parts replacement, pumps, pipe, fuel and other items necessary for the proposed Upper Huff Creek Water Project, hereinafter defined, paying the debt service on the proposed bonds, if any, and complying with State law reserve requirements including the working capital reserve. The increase will go into effect only if the project is constructed. The District has obtained commitments for grants for approximately $2,000,000 of the cost and will pursue additional grant funding.
Upper Huff Creek Water Project – The Resolution also approved a waterline extension to serve approximately 77 potential customers in the Upper Huff Creek, Brush Fork, and Road Fork areas of northern Wyoming County (“Upper Huff Creek Water Project”), which consists of the construction of approximately 25,640 linear feet of 6-inch and smaller diameter waterline, one 126 GPM duplex booster station, one 40 GPM duplex constant pressure booster station, two 158 gallon hydro-pneumatic tanks, one 54,000 gallon water storage tanks, one portable generator, fire hydrants, valves, individual customer services, and other related appurtenances at an estimated cost of $3,400,000, of which approximately $1,400,000 will be obtained from a loan from the West Virginia Infrastructure Fund through the issuance of the Series 2022 A Bonds, approximately $150,000 will be obtained from a contribution from The County Commission of Wyoming County, approximately $1,389,000 will be obtained from a Small Cities Block Grant, and approximately $500,000 will be obtained from a West Virginia Infrastructure Fund grant.
Unless otherwise ordered by the Commission the increased rates, fees, and charges will be implemented in two steps described below:
Step 1 of the increased rates, fees, and charges will become effective 45 Days after approval by the Commission and will produce approximately $786,168 annually in additional revenue, an increase of approximately 12.6% over the District’s current revenues. The impact of the proposed going-level increased rates, fees, and charges on the monthly minimum bill, average bill, and bills at the other usage levels shown below for the various classes of customers will be as follows:
and;
Step 2 of the increased rates, fees, and charges will become effective upon substantial competition of the Project (anticipated summer 2024), unless otherwise ordered by the Commission and will produce approximately $284,531 annually in additional revenue, an increase of 4.0% over Step 1. The impact of the proposed project-based Step 2 increased rates, fees, and charges on the monthly minimum bill, average bill, and bills at other usage levels shown below for the various classes of customers will be as follows:
The increases in monthly bills shown above are based on averages of all customers in the indicated class. Individual customers may receive increases that are greater or less than average, depending on their actual monthly usage. The Step 1 increase in rates, fees, and charges will become effective unless otherwise ordered by the Commission. The Step 2 increase in rates, fees, and charges will only become effective if the project is completed and unless otherwise ordered by the Commission.
Dated: July 20, 2022
/s/ John A. Turner
County Clerk