PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
At a session of the PUBLIC SERVICE COMMISSION OF WEST VIRGINIA in the City of Charleston on the 3Ist day of October 2023.
CASE NO. 23-0844-S-MA
TOWN OF HARMAN,
a municipal utility.
Investigation and suspension of increase in
sewer rates and charges as a result of
petitions filed in accordance with W.Va.
Code 924-2-4b.
COMMISSION ORDER SUSPENDING RATES
AND REFERRING TO ADMINISTRATIVE LAW JUDGE
On or about October 3, 2023, the Town of Harman (Town) adopted an ordinance increasing the rates and charges by approximately 21.12% to sewer customers of the Town. The Town claimed it is in such financial distress that a 45-day waiting period would be detrimental to its ability to deliver continued and compliant public services. Thus, the Town proposes that the rates will become effective immediately after enactment.
W.Va. Code Section 24-2-4b removes from Commission jurisdiction primary approval of rate increases of municipally operated public utilities in this State. W.Va. Code Section 24-2-4b(c) provides in relevant part:
The commission shall review and approve or modify the rates and charges of … municipally owned water and/or sewer utilities that are political subdivisions of the state and having less than 4,500 customers or annual combined revenues of less than $3 million upon the filing of a petition within 30 days of the adoption of the ordinance or resolution changing the rates or charges by:
(1) any customer aggrieved by the changed rates or charges who presents to the commission a petition signed by no less than 25 percent of the customers served by the … municipally owned water and/or sewer utility….
On October 30, 2023, the Commission received a Petition of protest apparently signed by not less than twenty-five percent of the Towns sewer customers. The Petition requested suspension of any water rate increase and Commission review of the ordinance pursuant to Rule 44 of the Commission’s Rules for the Construction and Filing of Tariffs under W.Va. Code Section 24-2-4b. If the Town desires to challenge the validity of the Petition, it should promptly do so.
Pursuant to W.Va. Code Section 24-2-4b(d)(2), because the Commission received a Petition of protest that appears to consist of not less than twenty-five percent of the Town’s sewer customers and because the ordinance would result in a rate increase of more than twenty-five percent of gross revenues, the law does not permit the rates to go into effect on the date stated in the ordinance. Instead, the Commission is required to suspend the rate increase for a period of one hundred twenty days for further proceedings as ordered below
IT IS THEREFORE ORDERED that the Town of Harman is hereby made a respondent to this proceeding, and, pending investigation, hearing and decision thereon, pursuant to the requirements of W.Va. Code Section 24-2-4b, the aforesaid proposed sewer rates and charges are hereby suspended and the use of the rates and charges stated therein deferred until 12:0l a.m., January 31, 2024, unless otherwise ordered by the Commission, to enable the Commission to examine and investigate the proposed water rate increase and to provide time for the Commission’s Administrative Law Judge to conduct the necessary hearing required by the aforesaid provisions of the W.Va. Code.
IT IS FURTHER ORDERED that this proceeding be referred to the Division of Administrative Law Judges, and that the ALJ Division render its decision in this matter on or before January 2, 2024.
IT IS FURTHER ORDERED that Commission Staff shall submit its report on or before November 17, 2023.
IT IS FURTHER ORDERED that the foregoing decision due date will not be extended, except upon formal application to the Commission by the parties.
IT IS FURTHER ORDERED that the Secretary of the Commission shall cause a copy of this Order to be published once, in a newspaper of general circulation in the Town of Harman, within five days of the date this Order is issued.
IT IS FURTHER ORDERED that any person or corporation interested in becoming a party to this proceeding should file a petition to intervene with the Executive Secretary of the Commission, P.O. Box 812, Charleston, West Virginia 25323, within ten days of the date this Order is published in the newspaper. All requests to intervene should briefly state the reason for the intervention and must comply with the Commission’s rule on interventions.
IT IS FURTHER ORDERED that the Executive Secretary of the Commission shall give notice of Commission jurisdiction and suspension of said rates and charges, by serving a copy of this Order on the Town of Harman by United States Certified Mail, Return Receipt Requested, by electronic service on all other parties of record who have filed an e-service agreement, by United States First Class Mail on all parties of record who have not filed an e-service Agreement, and on Commission Staff by hand delivery.
A True Copy, Teste,
Karen Buckley, Executive Secretary
11/3