PSC holds public hearing on West Virginia American Water rate proposal

CHARLESTON, W.Va. — The fourth public comment hearing on a proposed rate increase from West Virginia American Water Company took place Tuesday in Charleston.

The utility requested a rate increase of $32.7 million earlier this year for water customers and $218,027 for sewer customers.

According to Laura Martin, the external affairs manager for West Virginia American Water, said this will be an average rate increase of $10.22 a month per customer.

“The Public Service Commission evaluates every rate request. They go line by line to see if it’s reasonable, if it’s prudent (and) if those investments are prudent things to do,” she said. “For our customers, rates are the only way that we can reinvest into our system.”

Reinvestment is something West Virginia American Water is hoping to do with the new funds; Martin said the money will go toward improving the system, with projects dependent on the age of the infrastructure and need to upgrade utility property.

“Another interesting component of this case is not just the capital investment needs and the investment that’s already been made, but also the phenomenon we’ve seen year after year of declining population and declining consumption,” she said. “The needs for system improvements continue to increase while the number of customers continues to decrease.”

West Virginia American Water customers began seeing declines in their bills in September in light of savings from the federal tax law.

Jackie Roberts, the state’s consumer advocate, said West Virginia American Water is requesting too much money.

“They already have an extraordinary mechanism for some infrastructure improvements,” she said. “Infrastructure is important. We can’t deny that. There will have to be some adjustment for that.”

The new rates, if approved, would go into effect Feb. 24, 2019.

A final public hearing will be held Oct. 22 at the Cabell County Courthouse in Huntington.





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