CHARLESTON, W.Va. — West Virginia American Water filed an application Friday with the state Public Service Commission seeking approval for what it called an Infrastructure Replacement Program.
The company is seeking cost recovery on $32.5 million of its planned $107 million of capital investments in 2016 and 2017 through the plan with a separate charge on customers’ bills effective Jan. 1, 2017.
The surcharge, if approved, would be a percentage of monthly bills, resulting in an increase of nearly a 2 percent increase, or 89 cents for the average residential customer.
“The true benefit of an IRP to our customers is the elimination of large, cyclical rate increases that reflect cost recovery of multiple years of company investments all at one time,” company President Jeff McIntyre said. “An IRP also allows for an up-front regulatory review of our proposed infrastructure replacement projects each year, and then provides a way for customers who benefit from these investments to make very small payments each month toward these investments.”
The proposed program aims to upgrade infrastructure in seven categories of facilities, including water mains, meters, valves, hydrants, as well as certain plant, tank and booster station investments.
The PSC will conduct a review of the application, and the company has requested that an order be issued within a six-month period.
If approved, the company expects to file its annual IRP plan by July 1 of each year.
The Kanawha County Commission, and the cities of Charleston and Nitro have attempted to halt the surcharge request. WVAWC serves customers in parts of 17 West Virginia counties.
WVAWC has already increased its rates 15 percent for the average customer, which the PSC approved earlier this year.