NOTICE OF APPLICATION TO CHANGE RATES

PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON CASE NO. 15-0212-PWD-19A KANAWHA FALLS PUBLIC SERVICE DISTRICT, a public utility, Gauley Bridge, Fayette County, Rule 19A application to increase water rates and charges. NOTICE OF APPLICATION TO CHANGE RATES On February 10, 2015, Kanawha Falls Public Service District (Kanawha Falls) requested revised rates for providing potable water in portions of Fayette County under Rule 19-A of the Commission Rules for the Construction and Filing- of Tariffs, 150 C.S.R. Series 2. It also represented that it is currently experiencing financial deficiencies in its water operations. Commission Staff has reviewed the application and recommended increased rates and charges designed to produce $88,922 in additional annual revenue or an increase of 11.29 percent for one year with a reduced increase of $41,687 or 5.29 percent over current rates thereafter. Staff also recommended revised leak adjustment rates and changes to certain tariff provisions. The current rates are as follows: RATES First 1,000 gallons used per month $13.10 per 1,000 gallons Next 2,000 gallons used per month $9.21 per 1,000 gallons Over 3,000 gallons used per month $4.58 per 1,000 gallons MINIMUM BILL No bill will be rendered for less $13.10 per month, which is equivalent to 1,000 gallons or: 5/8 or 3/4 inch meter $13.10 per month 1 inch meter $32.74 per month 1 – 1/2 inch meter $65.48 per month 2 inch meter $104.76 per month 4 inch meter $327.38 per month 6 inch meter $654.76 per month 8 inch meter $1,047.61 per month Staff has recommended the following rate and tariff provisions as follows: Staff Recommended Step 1 Rates (effective for one year) APPLICABILITY Applicable within the entire territory served. AVAILABILITY Available for general domestic, commercial, industrial and sale for resale water service. RATES (Customers with metered water supply) First 1,000 gallons used per month $14.58 per 1,000 gallons Next 2,000 gallons used per month $10.25 per 1,000 gallons Over 3,000 gallons used per month $5.10 per 1,000 gallons MINIMUM BILL 3,000 gallons used per month No bill will be rendered for less than the following based on the size of the meter installed: 5/8 or 3/4 inch meter $14.58 per month 1 inch meter $36.45 per month 1 1/2 inch meter $72.90 per month 2 inch meter $116.64 per month 4 inch meter $364.50 per month 6 inch meter $729.00 per month 8 inch meter $1,166.40 per month RESALE RATE All water for resale will be billed at the rate of $3.71 per 1,000 gallons used per month. INDUSTRIAL RATE All water for sale to the Elkem Metals Company will be billed at the rate of $5.41 per 1,000 gallons used per month. RETURNED CHECK CHARGE A service charge equal to the actual bank fee assessed to the water utility up to a maximum of $25.00 will be imposed upon any customer whose check for payment of charges is returned by the bank due to insufficient funds. DELAYED PAYMENT PENALTY The above schedule is net. On all accounts not paid in full when due, ten percent (10{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}) will be added to the net current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate. RECONNECTION $25.00 To be charged whenever water service, which has been previously disconnected for violations of rules, non-payment of bills, or fraudulent use of water, is reconnected. TAP FEE The following charge is to be made whenever the utility installs a new tap to serve an applicant. A tap fee of $300.00 will be charged to all customers who apply for service outside of a certificate proceeding before the Commission for each new tap to the system. LEAK ADJUSTMENT $0.53 per 1,000 gallons is to be used when the bill reflects unusual consumption which can be attributed to eligible leakage on the customer’s side of the meter. This rate shall be applied to all such consumption above the customer’s historical average usage. SECURITY DEPOSIT Not to exceed two-twelfths (2/12) of the average annual usage of the applicant’s specific customer class, or fifty dollars, whichever is greater. This fee may be charged by applicable statutory provisions. The proposed rates result in the following increases above current rates by customer class: Service Type – Percentage Increase Average Monthly Increase Residential – 11.29{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $3.56 (based on 3,000 gal. per month) Commercial – 11.31{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $4.60 (based on 5,000 gal. per month) Industrial – 11.32{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $819.17 (based on 1.49 mil gal. per month) Resale – 11.41{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $2,989.19 (based on 7.87 mil gal. per month) Staff Recommended Step 2 Rates (effective after one year) APPLICABILITY Applicable within the entire territory served. AVAILABILITY Available for general domestic, commercial, industrial and sale for resale water service. RATES (Customers with metered water supply) First 1,000 gallons used per month $13.79 per 1,000 gallons Next 2,000 gallons used per month $9.69 per 1,000 gallons Over 3,000 gallons used per month $4.82 per 1,000 gallons MINIMUM BILL No bill will be rendered for less than the following, based on the size of the meter installed: 5/8 or 3/4 inch meter $13.79 per month 1 inch meter $34.48 per month 1 – 1/2 inch meter $68.95 per month 2 inch meter $110.32 per month 4 inch meter $344.75 per month 6 inch meter $689.50 per month 8 inch meter $1,103.20 per month RESALE RATE All water for resale will be billed at the rate of $3.51 per 1,000 gallons used per month. INDUSTRIAL RATE All water for sale to the Elkem Metals Company will be billed at the rate of $5.12 per 1,000 gallons used per month. RETURNED CHECK CHARGE A service charge equal to the actual bank fee assessed to the water utility up to a maximum of $25.00 will be imposed upon any customer whose check for payment of charges is returned by the bank due to insufficient funds. DELAYED PAYMENT PENALTY The above schedule is net. On all accounts not paid in full when due, ten percent (10{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}) will be added to the net current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate. RECONNECTION $25.00 To be charged whenever water service, which has been previously disconnected for violations of rules, non-payment of bills, or fraudulent use of water, is reconnected. TAP FEE The following charge is to be made whenever the utility installs a new tap to serve an applicant. A tap fee of $300.00 will be charged to all customers who apply for service outside of a certificate proceeding before the Commission for each new tap to the system. LEAK ADJUSTMENT $0.53 per 1.000 gallons is to be used when the bill reflects unusual consumption which can I be attributed to eligible leakage on the customer’s side of the meter. This rate shall be applied to all such consumption above the customer’s historical average usage. SECURITY DEPOSIT Not to exceed two-twelfths (2/12) of the average annual usage of the applicant’s specific customer class, or fifty dollars, whichever is greater. This fee may be charged by applicable statutory provisions. The proposed rates result in the following increases above current rates by customer class: Service Type – Percentage Increase Average Monthly Increase Residential – 5.23{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $1.65 (based on 3,000 gal. per month) Commercial – 5.24{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $2.13 (based on 5,000 gal. per month) Industrial – 5.35{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $387.24 (based on 1.49 mil gal. per month) Resale – 5.41{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $1,415.93 (based on 7.87 mil gal. per month) The Kanawha Falls Public Service District has objected to the Staff-recommended rates. The rates approved by the Commission may be more than, less than or the same as recommended by Commission Staff. Anyone desiring to protest or intervene should file a written protest or request to intervene within ten days following the date of publication unless otherwise modified by Commission Order. Requests to intervene must comply with the Commission rules on intervention set forth in the Commission Rules of Practice and Procedure. All protests and intervention requests should be addressed to Ingrid Ferrell, Executive Secretary, P.O. Box 812, Charleston, WV 25323. To help the Commission determine the justification for additional review and investigation, protests must be specific as to the reasons that the changed rates and charges should not be approved. In addition, anyone desiring an evidentiary hearing in this matter must demand the hearing in the protest letter. If no substantial protest is received, the Commission may approve the Staff-recommended rates without hearing. KANAWHA FALLS PUBLIC SERVICE DISTRICT 6-18-THR-2-FT; LG 286