PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 24-0557-WS-DSIC
WEST VIRGINIA-AMERICAN WATER COMPANY
2025 Distribution System Improvement Charge.
NOTICE OF FILING & HEARING
On June 28, 2024, 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 $40.6 million in water and $3.2 million
in wastewater infrastructure replacement and system upgrades in 2025. 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 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 2025 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’s
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
proposes to include a wastewater system improvement charge as a component
of the DSIC rate component to recover proposed qualified investment in wastewater
utility plant as authorized by the Commission in its March 1, 2024 order in
Case No. 23-0558-WS-DSIC. The proposed DSIC rate combines the Company’s
DSIC qualified wastewater revenue requirement with its water revenue requirement
to calculate a single DSIC rate that is the same percentage adder for both
water and wastewater customers.
WVAWC projects that if rate increments are approved as requested, the current
4.23% DSIC/WSIC adder will be increased to 7.01%, representing an increase of
approximately 2.78% for average monthly usage bills. The average monthly bill
for its various classes of water and sewer customers will change as follows:
Water Service DSIC Rate of 7.01%
Customer Class $ Increase % Increase Average Usage
Residential $1.94 2.78% 3,000 gallons per month
Commercial $10.31 2.78% 16,000 gallons per month
Industrial $252.79 2.78% 650,000 gallons per month
Other Public Authority $43.80 2.78% 33,000 gallons per month
Sale for Resale $1,509.74 2.78% 5,652,000 gallons per month
Wastewater Service WSIC Rate of 7.01%
Customer Class $ Increase % Increase Average Usage
Residential $2.00 2.78% 3,000 gallons per month
Commercial $9.56 2.78% 16,000 gallons per month
Industrial $378.49 2.78% 650,000 gallons per month
Other Public Authority $19.46 2.78% 33,000 gallons per month
Sale for Resale $ N/A 2.78% 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. The new DSIC rate increment will become effective as ordered by the
Commission.
The Commission set a hearing date on the Application which will begin at 9:30
a.m. on November 6, 2024, 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 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 at http://www.psc.state.wv.us/scripts/onlinecomments/default.
cfm by clicking the “Formal Case” link.
WEST VIRGINIA-AMERICAN WATER COMPANY
7-31-1tm