PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 23-0558-WS-DSIC
WEST VIRGINIA-AMERICAN WATER COMPANY
Application for approval of the 2024 Distribution
System Improvement Charge.
NOTICE OF FILING & HEARING
On June 30, 2023, West Virginia-American Water Company (WVAWC) filed an application for approval of a Distribution System Improvement Plan and Charge (Application) pursuant to the direction of the Public Service Commission of West Virginia (Commission) in its February 24, 2016 Order that resolved WVAWC’s 2015 rate application, Case Nos. 15-0675-S-42T and 15-0676-W-42T.
WVAWC proposes to invest approximately $70.8 million in water and $3.7 million in wastewater infrastructure replacement and system upgrades in 2024. The investment will include the replacement of transmission and distribution mains, hydrants, water service lines, meters, wastewater collection mains manholes, wastewater service lines, pumping equipment, treatment and disposal equipment, and investment in troubled or failing systems. To recover the costs related to the investment WVAWC is requesting an increase to its Distribution System Improvement Charge (DSIC). The projects proposed for 2024 are identified in the Application, which is on file and available for public inspection at the Commission’s offices at 201 Brooks Street, Charleston, West Virginia, and may be viewed on the Commission website, www.psc.state.wv.us.
As with the DSIC currently in place, WVAWC proposes to recover costs associated with these investments through a new separate rate component on customer bills, calculated as a percentage of the total monthly bill for service (comprised of both the minimum meter charge and the volumetric rate component). WVAWC proposes to include wastewater system improvement costs as a component of the DSIC rate to recover proposed qualified investment in wastewater utility plant. The proposed DSIC rate combines the Company’s DSIC qualified wastewater revenue requirements and the water revenue requirements to calculate a single DSIC rate that is the same percentage adder for both water and wastewater customers.
WVAWC projects that if the program and DSIC rate component is approved as requested, the current 5.98% DSIC adder on water customer bills will be increased to 11.16%, representing an increase of approximately 4.89% for average monthly usage bills. For sewer customers that have no current DSIC added to their bills the proposed adder will be 11.16%. The average monthly bill for its various classes of water and sewer customers, will change as follows:
Water Service
Customer Class $ Increase % Increase Average Usage
Residential $3.14 4.89% 3,000 gallons per month
Commercial $16.75 4.89% 16,000 gallons per month
Industrial $410.41 4.89% 650,000 gallons per month
Other Public Authority $30.11 4.89% 33,000 gallons per month
Sale for Resale $2,451.02 4.89% 5,652,000 gallons per month
Wastewater Service
Customer Class $ Increase % Increase Average Usage
Residential $6.99 11.16% 3,000 gallons per month
Commercial $33.45 11.16% 16,000 gallons per month
Industrial $1,323.85 11.16% 650,000 gallons per month
Other Public Authority $68.05 11.16% 33,000 gallons per month
Sale for Resale $11,504.62 11.16% 5,652,000 gallons per month
The increases shown above are based on averages of all customers in the indicated class. Each class may receive an increase greater or less than stated here. Individual customers may receive increases that are greater or less than average. The requested rates and charges are only a proposal and are subject to changes (increases or decreases) by the Public Service Commission in its review of the filing. In addition, WVAWC has proposed new base rates in its pending base rate proceedings, Case Nos. 23-0383-W-42T and 23-0384-S-42T which have been suspended until February 25, 2024. The new DSIC rate increment will become effective on January 1, 2024, and may be modified thereafter, if ordered by the Commission, coincidental with the effective date of rates in Case Nos. 23-0383-W-42T and 23-0384-S-42T, which date is currently February 25, 2024.
The Commission set a hearing date on the Application which will begin at 9:30 a.m. on November 6, 2023, in the Howard M. Cunningham Hearing Room at the Commission’s offices at 201 Brooks Street, Charleston, West Virginia. The Commission may cancel the hearing for good cause shown. Interested persons intending to attend the hearing should monitor the Commission web docket.
Anyone desiring to protest or intervene should file a written protest or request to intervene that briefly states the reason for the protest or request to intervene. Requests to intervene must comply with the rules on intervention set forth in the Commission’s Rules of Practice and Procedure and must be filed within twenty (20) days following the date of this publication unless otherwise modified by Commission order. The Commission will receive public comments throughout the entirety of the proceeding. All written comments and requests to intervene should state the case name and number and be addressed to Karen Buckley, Executive Secretary, P.O. Box 812, Charleston, West Virginia 25323. Public comments may also be filed online by clicking the “Formal Case” link at
http://www.psc.state.wv.usiscripts/onlinecomments/default.cfm.
WEST VIRGINIA-AMERICAN WATER COMPANY