Mercer

PUBLIC SERVICE COMMISSION OF WEST

PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON

CASE NO. 19-0614-W-DSIC

WEST VIRGINIA-AMERICAN WATER COMPANY,
Petition for approval of the 2020 Infrastructure Replacement
Program Surcharge Mechanism.

NOTICE OF FILING & HEARING

On June 28, 2019, 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 implement a Distribution System Improvement Charge (DSIC), under which it would invest approximately $36 million for infrastructure replacement and system upgrades in 2020 throughout WVAWC’s entire 19-county service area. This DSIC application primarily would cover the replacement of transmission and distribution mains, valves, hydrants, tanks, meters, and service lines. The projects proposed for 2020 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 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 projects that if the program and rate increment are approved as requested, the 2020 rate will be an increase of 2.77{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} over current base rates. The average monthly bill for its various classes of customers, compared to the 2020 DSIC rate, will be changed on January 1, 2020, as follows:

$ Increase {4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} Increase Average Usage
Residential $ 1.50 2.77{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} 3,132 gallons per month
Commercial $ 7.12 2.77{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} 17,669 gallons per month
Industrial $ 252.22 2.77{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} 661,456 gallons per month
Sale for Resale $ 437.97 2.77{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} 2,009,217 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.

The Commission set a procedural schedule, including a hearing on the Application. The hearing will begin at 9:30 a.m. on Wednesday, October 23, 2019, in the Howard M. Cunningham Hearing Room at the Commission’s offices at 201 Brooks Street, Charleston, West Virginia.

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 thirty (30) 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, including live comments at the beginning of the hearing. All written comments and requests to intervene should state the case name and number and be addressed to Connie Graley, 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.us/scripts/onlinecomments/default.cfin.

WEST VIRGINIA-AMERICAN WATER COMPANY

ID: 306713