REVISED NOTICE OF APPLICATION TO CHANGE RATES

LEGAL ADVERTISEMENT LEGAL ADVERTISEMENT PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON CASE NO. 15-0211-PSD-19A KANAWHA FALLS PUBLIC SERVICE DISTRICT, a public utility, Gauley Bridge, Fayette County, Rule 19A application to increase sewer rates and charges. REVISED NOTICE OF APPLICATION TO CHANGE RATES On February 10, 2015, Kanawha Falls Public Service District (Kanawha Falls) requested revised rates for providing sanitary sewer services in portions of Fayette County under Rule 19-A of the Commission Rules for the Construction and Filing of Tariffs, 150 C.S.R. Series 2. It also represented that it is currently experiencing financial deficiencies in its operations. Commission Staff has reviewed the application and recommended decreased rates and charges designed to initially reduce annual revenue by $148,638 or 13.98 percent, with a further total reduction of $163,476 or 15.38 percent below current rates after two years. Staff also recommended revised leak adjustment rates and changes to certain tariff provisions. The current rates are as follows: APPLICABILITY Applicable within the entire territory served. AVAILABILITY Available for general domestic, commercial, industrial and sale for resale sewer service. RATES (customers with metered water supply) First 3,000 gallons used per month $10.84 per 1,000 gallons Over 3,000 gallons used per month $6.49 per 1,000 gallons MINIMUM BILL No bill will be rendered for less than $21.68 per month. FLAT RATE CHARGE (customers with non-metered water supply) $35.77 per month BULK TREATMENT RATES Wastewater treatment for Armstrong Public Service District, Deepwater Public Service District and the City of Smithers will be billed at the rate of $4.47 per 1,000 gallons of metered water usage within the Districts and City. Wastewater treatment for Elkem Metals Company will be billed at the rate of $4.02 per 1,000 gallons of metered water used per month. Wastewater treatment for the Prison Authority will be billed at the rate of $4.76 per 1,000 gallons. Minimum Bill $21,420 per month, based upon consumption of 4,500 M gallons used per month. RESALE CREDIT (Applicable only to the City of Smithers) $577.50 per month will be credited against the respective bill rendered to the City of Smithers for debt incurred by the City as part of the Kanawha Falls project. This credit will remain in effect until the indebtedness associated with the respective project is satisfied. (Matures in 2033). 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. TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant. A tap fee of $50.00 will be charged to customers applying for service before construction is completed adjacent to the customer’s premises in connection with a certificate proceeding before the Commission. This pre-construction tap fee will be invalid after the completion of construction adjacent to the applicant’s premises that is associated with a certificate proceeding. A tap fee of $300.00 will be charged to customers applying for service outside of a certificate proceeding before the Commission for each new tap to the system. LEAK ADJUSTMENT $0.64 per 1,000 gallons is to be used when a bill reflects unusual consumption which can be attributed to eligible leakage on the customer’s side of the meter. This rate shall be applied to all such consumption above the customer’s historical average usage. RETURNED CHECK CHARGE A service charge equal to the actual bank fee assessed to the sewer utility up to 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. APPLICABLE INSIDE AND OUTSIDE OF THE CORPORATE LIMITS OF THE KANAWHA FALLS Where the amount of sanitary sewage discharged in the Kanawha Falls waste treatment system by certain industrial plant or plants cannot be accurately determined by the use of the plant’s water meter or meters, and said plant cannot install a flow meter to measure such waste, a special formula will be used whereby such plant or plants will pay the Kanawha Falls Public Service District a sewer charge calculated at fifty (50) gallons of water per employee at the plant each working day. The Staff-recommended rates and tariff provisions are as follows: Staff Recommended Step 1 Rates (Effective for two years) APPLICABILITY Applicable within the entire territory served. AVAILABILITY Available for general domestic, commercial, industrial and sale for resale sewer service. RATES (customers with metered water supply) First 3,000 gallons used per month $9.33 per 1,000 gallons All Over 3,000 gallons used per month $5.58 per 1,000 gallons MINIMUM CHARGE No bill will be rendered for less than $18.66 per month. FLAT RATE CHARGE (customers with non-metered water supply) $30.78 per month BULK TREATMENT RATES Wastewater treatment for Armstrong Public Service District, Deepwater Public Service District and the City of Smithers will be billed at the rate of $3.85 per 1,000 gallons of metered water usage within the Districts and City. Wastewater treatment for Elkem Metals Company will be billed at the rate of $3.46 per 1,000 gallons of metered water used per month. Wastewater treatment for the Prison Authority will be billed at the rate of $4.10 per 1,000 gallons. Minimum Bill $18,450 per month. RESALE CREDIT (Applicable only to the City of Smithers) $577.50 per month will be credited against the respective bill rendered to the City of Smithers for debt incurred by the City as part of the Kanawha Falls project. This credit will remain in effect until the indebtedness associated with the respective project is satisfied. (Matures in 2033). 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. TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant. A tap fee of $50.00 will be charged to customers applying for service before construction is completed adjacent to the customer’s premises in connection with a certificate proceeding before the Commission. This pre-construction tap fee will be invalid after the completion of construction adjacent to the applicant’s premises that is associated with a certificate proceeding. A tap fee of $300.00 will be charged to customers applying for service outside of a certificate proceeding before the Commission for each new tap to the system. LEAK ADJUSTMENT $0.77 per 1,000 gallons is to be used when a bill reflects unusual consumption which can be attributed to eligible leakage on the customer’s side of the meter. This rate shall be applied to all such consumption above the customer’s historical average usage. RETURNED CHECK CHARGE A service charge equal to the actual bank fee assessed to the sewer utility up to 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. SECURITY DEPOSIT Not to exceed two-twelfth (2/12) of the average annual usage of the applicant’s specific class, or fifty dollars, whichever is greater. This fee may be changed by applicable statutory provisions. APPLICABLE INSIDE AND OUTSIDE OF THE BOUNDARIES OF THE KANAWHA FALLS PUBLIC SERVICE DISTRICT Where the amount of sanitary sewage discharged in the Kanawha Falls waste treatment system by certain industrial plant or plants cannot be accurately determined by the use of the plant’s water meter or meters, and said plant cannot install a flow meter to measure such waste, a special formula will be used whereby such plant or plants will pay the Kanawha Falls Public Service District a sewer charge calculated at fifty (50) gallons of water per employee at the plant each working day. The proposed rate decrease represents the following percentage change for each rate class: Service Type – Percentage Decrease Average Monthly Decrease Residential – 13.93{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $4.62 (based on 3,100 gal. per month) Commercial – 13.96{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $6.35 (based on 5,000 gal. per month) Industrial – 13.93{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $834.06 (based on 1.49 mil gal. per month) Public Authority – 13.87{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $2,970.00 (based on 3.32 mil gal. per month) Resale – 13.87{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $971.85 (based on 1.57 mil gal. per month) Staff Recommended Step 2 Rates (effective after two years) APPLICABILITY Applicable within the entire territory served. AVAILABILITY Available for general domestic, commercial, industrial and sale for resale sewer service. RATES (customers with metered water supply) First 3,000 gallons used per month $9.18 per 1,000 gallons All Over 3,000 gallons used per month $5.50 per 1.000 gallons MINIMUM CHARGE No bill will be rendered for less than $18.36 per month. FLAT RATE CHARGE (customers with non-metered water supply) $30.29 per month BULK TREATMENT RATES Wastewater treatment for Armstrong Public Service District, Deepwater Public Service District and the City of Smithers will be billed at the rate of $3.79 per 1,000 gallons of metered water usage within the Districts and City. Wastewater treatment for Elkem Metals Company will be billed at the rate of $3.40 per 1,000 gallons of metered water used per month. Wastewater treatment for the Prison Authority will be billed at the rate of $4.03 per 1,000 gallons. Minimum Bill $18,135 per month. RESALE CREDIT (Applicable only to the City of Smithers) $577.50 per month will be credited against the respective bill rendered to the City of Smithers for debt incurred by the City as part of the Kanawha Falls project. This credit will remain in effect until the indebtedness associated with the respective project is satisfied. (Matures in 2033). 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. TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant. A tap fee of $50.00 will be charged to customers applying for service before construction is completed adjacent to the customer’s premises in connection with a certificate proceeding before the Commission. This pre-construction tap fee will be invalid after the completion of construction adjacent to the applicant’s premises that is associated with a certificate proceeding. A tap fee of $300.00 will be charged to customers applying for service outside of a certificate proceeding before the Commission for each new tap to the system. LEAK ADJUSTMENT $0.77 per 1,000 gallons is to be used when a bill reflects unusual consumption which can be attributed to eligible leakage on the customer’s side of the meter. This rate shall be applied to all such consumption above the customer’s historical average usage. RETURNED CHECK CHARGE A service charge equal to the actual bank fee assessed to the sewer utility up to 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. SECURITY DEPOSIT Not to exceed two-twelfth (2/12) of the average annual usage of the applicant’s specific class, or fifty dollars, whichever is greater. This fee may be changed by applicable statutory provisions. APPLICABLE INSIDE AND OUTSIDE OF THE BOUNDARIES OF THE KANAWHA FALLS PUBLIC SERVICE DISTRICT Where the amount of sanitary sewage discharged in the Kanawha Falls waste treatment system by certain industrial plant or plants cannot be accurately determined by the use of the plant’s water meter or meters, and said plant cannot install a flow meter to measure such waste, a special formula will be used whereby such plant or plants will pay the Kanawha Falls Public Service District a sewer charge calculated at fifty (50) gallons of water per employee at the plant each working day. The proposed rate decrease represents the following percentage change for each rate class: Service Type Percentage Decrease Average Monthly Decrease Residential – 15.31{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $5.08 (based on 3,100 gal. per month) Commercial – 15.30{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $6.96 (based on 5,000 gal. per month) Industrial – 15.42{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $923.43 (based on 1.49 mil gal. per month) Public Authority – 15.34{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $3,285.00 (based on 3.32 mil gal. per month) Resale – 15.2 1{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c} $1,065.90 (based on 1.57 mil gal. per month) The Kanawha Falls Public Service District has objected to the Staff-recommended rates. The rates approved by the Commission may be more than, less than or the same as recommended by Commission Staff. Anyone desiring to protest or intervene should file a written protest or request to intervene within ten days following the date of publication unless otherwise modified by Commission Order. Requests to intervene must comply with the Commission rules on intervention set forth in the Commission Rules of Practice and Procedure. All protests and intervention requests should be addressed to Ingrid Eerrell, Executive Secretary, P.O. Box 812, Charleston, WV 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 not be approved. In addition, anyone desiring an evidentiary hearing in this matter must demand the hearing in the protest letter. If no substantial protest is received, the Commission may approve the Staff-recommended rates without hearing. KANAWHA FALLS PUBLIC SERVICE DISTRICT 7-13-MON-2-FT; LG 312