Source: February 27, 2015 Read More →

PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON

PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON

CASE NO. 15-0260-W-CN

TOWN OF HARMAN
Application for a certificate of convenience and necessity for the construction, operation and maintenance of a waterline extension and improvement project and for approval of the financing thereof.

NOTICE OF FILING

On February 24, 2015, the Town of Harman (Town) filed an application for a certificate of convenience and necessity for the construction, operation and maintenance of a waterline extension and improvement project and for approval of the financing thereof.

The project consists of the construction of waterline extensions, installation of a new radio telemetry system, installation of two booster pump stations, rehabilitation of an existing 158,000 gallon storage tank, construction of a new 105,000 gallon storage tank, upgrading of the Town’s water plant’s two high service pumps, monitoring equipment and electrical facilities, as well as construction of a new production well.

In the event the project funding requires deductions to the project, a hydropneumatic booster pump station and associated water line would be eliminated for an approximate savings of $150,000.00. Should extra funds remain which would permit addition to the project, temporary power equipment would be installed.

The total estimated project cost is $5,935,000.00, to be funded through a WVIJDC Loan of $3,435,000.00 at 0{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} interest for a term of 40 years; a WVIJDC grant in the amount of $1,000,000.00; a Small Cities Block Grant (SCBG) of $1,300,000.00; and a Water Development Authority (WDA) Grant Anticipation Note (GAN) of $200,000.00.

On November 5, 2014, the Town Council adopted the following increased water rates and charges, which covers the cost associated with this project, to become effective upon completion of the project or upon commencement of payment of debt service associated with said project, whichever occurs first:

RATE SCHEDULE 1

APPLICABILITY
Applicable to all customers served by the Town’s water system prior to the completion of the Town’s 2014-2015 water extension project.

AVAILABILITY OF SERVICE
Available for general domestic, commercial, and industrial water service.

METERED RATES (Customers with metered water supply)

First 2,000 gallons used per month $17.49 per 1,000 gallons
Next 4,000 gallons used per month $16.54 per 1,000 gallons
Next 4,000 gallons used per month $13.13 per 1,000 gallons
Next 10,000 gallons used per month $12.37 per 1,000 gallons
All over 20,000 gallons used per month $11.57 per 1,000 gallons

MINIMUM CHARGE
No bill will be rendered for less than $34.98 per month which is the equivalent of 2,000 gallons of water:

5/8 inch meter $ 34.98 per month
3/4 inch meter $ 52.47 per month
1 inch meter $ 87.45 per month
1-1/2 inch meter $ 174.90 per month
2 inch meter $ 279.85 per month
3 inch meter $ 559.70 per month
4 inch meter $ 874.53 per month
6 inch meter $ 1749.06 per month
8 inch meter $ 4197.74 per month

RATE SCHEDULE 2

APPLICABILITY
Applicable to all customers connecting to the Town’s 2014-2015 water extension project.

AVAILABILITY OF SERVICE
Available for general domestic, commercial, and industrial water service.

RATES (Customers with metered water supply)

Commodity Charge
First 2,000 gallons used per month $17.49 per 1,000 gallons
Next 4,000 gallons used per month $16.54 per 1,000 gallons
Next 4,000 gallons used per month $13.13 per 1,000 gallons
Next 10,000 gallons used per month $12.37 per 1,000 gallons
All over 20,000 gallons used per month $11.57 per 1,000 gallons

Customer Charge
Each customer shall pay a customer charge of $11.00 per month.

MINIMUM CHARGE
No bill will be rendered for less than $34.98 per month which is the equivalent of 2,000 gallons of water plus the monthly customer charge:

5/8 inch meter $ 34.98 per month
3/4 inch meter $ 52.47 per month
1 inch meter $ 87.45 per month
1-1/2 inch meter $ 174.90 per month
2 inch meter $ 279.85 per month
3 inch meter $ 559.70 per month
4 inch meter $ 874.53 per month
6 inch meter $ 1749.06 per month
8 inch meter $ 4197.74 per month

RATE SCHEDULE 3

The following fees and charges shall be applicable to all water customers served under Rate Schedules 1 and 2 above:

RETURNED CHECK CHARGE
A service charge equal to the actual bank fee assessed to the Town or 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 FEE – $20.00
To be charged whenever the supply of water is turned off for violations of rules, non-payment of bills or fraudulent use of water.

TAP FEE
The following charges are to be made whenever the Town 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 Public Service Commission for each new tap to the system.

LEAK ADJUSTMENT
$1.25 per 1,000 gallons is to be used when a bill reflects unusual consumption which can be attributed to eligible leakage on customer’s side of the meter. This rate shall be applied to all such consumption above the customer’s historical usage.

DEPOSIT
As of the date of passage, the applicable provision of WV Code section 8-19-12a(a)(2):

“The municipality or governing body, but only one of them, may collect from all new applicants for service a deposit of $50 or two twelfths of the average annual usage of the applicant’s specific customer class, whichever is greater, to secure the payment of the water service rates, fees and charges, in the event they become delinquent as provided in this section. In any case where a deposit is forfeited to pay service rates, fees and charges which were delinquent and the user’s service is disconnected or terminated, no reconnection or reinstatement of service may be made by the municipality or governing body until another deposit equal to $50 or a sum equal to two twelfths of the average usage for the applicant’s specific customer class, whichever is greater, is remitted to the municipality or governing body. After twelve months of prompt payment history, the municipality or governing body shall return the deposit to the customer or credit the customer’s account with interest at a rate as the Public Service Commission may prescribe: Provided, That where the customer is a tenant, the municipality or governing body is not required to return the deposit until the time the tenant discontinues service with the municipality or governing body. Whenever any rates, fees, rentals or charges for services or facilities furnished remain unpaid for a period of twenty days after the same become due and payable, the user of the services and facilities provided is delinquent and the user is liable at law until all rates, fees and charges are fully paid. The municipality or governing body may, under reasonable rules promulgated by the Public Service Commission, shut off and discontinue water services to a delinquent user of water facilities ten days after the water services become delinquent regardless of whether the municipality or governing body utilizes the security deposit to satisfy any delinquent payments: Provided further, That nothing contained within the rules of the Public Service Commission shall be deemed to require any agents or employees of the municipality or governing body to accept payment at the customer’s premises in lieu of discontinuing service for a delinquent bill.”

As of the date of passage, the applicable provision of the PSC Water Rules, Rule 4.2.a.1:

… For a municipal water system only, the deposit shall not be more than either fifty dollars ($50) or two-twelfths (2/12) of the average annual usage of the applicant’s specific customer class, whichever is greater … .”

This tariff, in accordance with the above cited statutory language and PSC Water Rules, produces a security deposit for residential customers of $50.00.

The Town of Harman has no water resale customers.

The increased rates and charges related to the project will produce approximately $129,243.00 annually in additional revenue, an increase of 156.59{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}. The average monthly bill for the various classes of customers will be changed as follows:

($) Increase {4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} Increase

Residential $8.73 18.5{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}
Commercial $128.10 18.5{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}

The increases shown are based on averages of all customers in the indicated class. Individual customers may receive increases that are greater or less than average.

Anyone desiring to protest or intervene in this certificate proceeding should file a written protest or request to intervene within thirty (30) days following the date of this publication unless otherwise modified by Commission order. Failure to timely protest or intervene can affect your right to protest aspects of this certificate case or participate in future proceedings. All protests or requests to intervene should briefly state the reason for the protest or request to intervene. Requests to intervene must comply with the rules on intervention set forth in the Commission Rules of Practice and Procedure. All protests and requests to intervene should be addressed to Executive Secretary, P.O. Box 812, Charleston, West Virginia 25323.

In the absence of substantial protest received within thirty (30) days of this publication, the Commission may waive formal hearing and render its decision based on Commission review of the evidence submitted with the application.
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