CENTRAL BOAZ PUBLIC SERVICE DISTRICT
CASE NO. 16-1423-PWD-19A
NOTICE OF STAFF-RECOMMENDED RATES
On October 24, 2016, Central Boaz Public Service District filed a Rule 19A application for a change in its water rates and charges. Central Boaz Public Service District serves customers in Wood County.
Staff recommends a two step rate increase to meet the Districtás revenue requirements. Staffás Step 1 rates will generate a revenue increase of $34,615 annually, which is an increase of 16.62{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} over current rates. According to Staff, that rate would cover the Districtás operating expenses of $139,629, debt service requirements of $78,779, debt service reserve of $7,114, Senate Bill 234 funding of $11,369, provide a surplus of $6,079 to meet renewal and replacement requirements and a debt service coverage factor of 131.18{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}. As a result, under Staffs Step 1 rates, the monthly bill for an average usage of 4,000 gallons for residential customers will result in an increase of $7.62 or 16.75{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} over current rates.
Staffás Step 2 rates will generate a revenue increase of $22,999 over current rates, which is 11.04{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} over current rates. That rate would cover the Districtás operating expenses of $139,629, debt service requirement of $78,779, debt service reserve requirements of $7,114 and provide a cash surplus of $5,832 to meet renewal and replacement requirements. Debt service coverage factor will total 116.43{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}. Therefore, the monthly bill for an average usage of 4,000 gallons for residential customers will result in an increase of $1.92 or 11.17{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} over current rates.
Finally, in making its recommendation, Staff recalculated the Districtás current leak adjustment rate of $1.41 per 1,000 gallons to a rate of $1.60 per 1,000 gallons. The Staff rates are as follows:
STAFF RECOMMENDED TARIFF-STEP 1
Effective for 24 Months
APPLICABILITY
Applicable within the entire territory served.
AVAILABILITY OF SERVICE
Available for general domestic, commercial and industrial water service.
RATES
First 3,000 gallons per month $6.69 per 1,000 gallons
Next 3,000 gallons per month $5.80 per 1,000 gallons
Next 4,000 gallons per month $5.21 per 1,000 gallons
Next 10,000 gallons per month $4.45 per 1,000 gallons
All Over 20,000 gallons used per month $3.04 per 1,000 gallons
MINIMUM BILL
No bill will be rendered for less than the following schedule:
5/8 inch meter $ 20.07 per month
3/4 inch meter $ 30.11 per month
1 inch meter $ 50.18 per month
1 1/2 inch meter $ 73.25 per month
2 inch meter $100.35 per month
3 inch meter $160.55 per month
DELAYED PAYMENT PENALTY
The above schedule is net. On all current usage billings not paid within twenty (20) days, 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 once for each bill where it is appropriate.
TAP FEE
The following charge is to be made whenever the utility installs a new tap to serve an applicant:
A tap fee of $350.00 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.
RECONNECTION
$20.00
To be charged whenever the supply of water is turned off for violations of rules, nonpayment of bills or fraudulent use of water.
RETURNED CHECK CHARGE
A service charge equal to the actual bank fee assessed to the District up to a maximum of $25.00 will be imposed upon any customer whose check for payment of charges is returned by their bank due to insufficient funds.
SECURITY DEPOSIT
Not to exceed two-twelfths (2/12) of the average usage of the applicantás specific customer class or fifty dollars, whichever is greater. This fee may be changed by applicable statutory provisions.
LEAK ADJUSTMENT
$1.60 per 1,000 gallons of water is to be used when the bill reflects unusual consumption which can be attributed to eligible leakage on the customerás side of the meter. This rate shall be applied to all such consumption above the customerás historical average usage.
STAFF RECOMMENDED TARIFF-STEP 2
Effective after 24 Months
APPLICABILITY
Applicable within the entire territory served.
AVAILABILITY OF SERVICE
Available for general domestic, commercial and industrial water service.
RATES
First 3,000 gallons per month $6.37 per 1,000 gallons
Next 3,000 gallons per month $5.52 per 1,000 gallons
Next 4,000 gallons per month $4.95 per 1,000 gallons
Next 10,000 gallons per month $4.23 per 1,000 gallons
All Over 20,000 gallons used per month $2.89 per 1,000 gallons
MINIMUM BILL
No bill will be rendered for less than the following schedule:
5/8inch meter $ 19.11 per month
3/4 inch meter $ 28.67 per month
1 inch meter $ 47.78 per month
1 1/2 inch meter $ 69.75 per month
2 inch meter $ 95.55 per month
3 inch meter $152.88 per month
DELAYED PAYMENT PENALTY
The above schedule is net. On all current usage billings not paid within twenty (20) days, 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 once for each bill where it is appropriate.
TAP FEE
The following charge is to be made whenever the utility installs a new tap to serve an applicant:
A tap fee of $350.00 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.
RECONNECTION
$20.00
To be charged whenever the supply of water is turned off for violations of rules, nonpayment of bills or fraudulent use of water.
RETURNED CHECK CHARGE
A service charge equal to the actual bank fee assessed to the District up to a maximum of $25.00 will be imposed upon any customer whose check for payment of charges is returned by their bank due to insufficient funds.
SECURITY DEPOSIT
Not to exceed two-twelfths (2/12) of the average usage of the applicantás specific customer class or fifty dollars, whichever is greater. This fee may be changed by applicable statutory provisions.
LEAK ADJUSTMENT
$1.60 per 1,000 gallons of water is to be used when the bill reflects unusual consumption which can be attributed to eligible leakage on the customerás side of the meter. This rate shall be applied to all such consumption above the customerás historical average usage.
Anyone desiring to protest the changed rates and charges must do so, in writing, within ten (10) days of the date of publication of this notice. All protests should be addressed to the Executive Secretary, Public Service Commission of West Virginia, P. 0. Box 812, Charleston, West Virginia 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 be modified. In addition, anyone desiring a hearing in this matter must demand a hearing in the letter of protest.
If no substantial protest is filed, the Staff-recommended rates may be approved without hearing.
CENTRAL BOAZ PUBLIC SERVICE DISTRICT
May 8, 15