CHARLESTON, W.Va. — A Kanawha County elected official is commending the state’s largest water utility for a proposal that calls for a rate decrease for its customers beginning next month.
Kanawha County Commission President Kent Carper, who has been a harsh critic of utility companies in the past for their rate increase plans, said West Virginia American Water Company has realized the best way to handle federal tax reform savings is to pass those savings directly back to its customers.
“It’s a step,” Carper said Friday. “It’s a small step but it is a step in the right direction. The water company has voluntarily proposed to reduce rates beginning in September.”
West Virginia American was able to reduce its April rate filing by $11 million dollars because of the tax overhaul bill passed by Congress. It filed a proposed settlement with the state Public Service Commission Thursday calling on a modest rate decrease of 3.5 percent. According to the company, the average customer would save about $1.60 a month for water and $2.17 a month on sewer bills.
“Is it a huge decrease? No. But it is the right step. There is more to come with the rest of the case,” Carper predicted.
The company also plans to use $3.2 million it collected from January to August of this year under the old tax rate to pay off several large one-time expenditures. It said that will help reduce the amount it’s seeking in a base rate case the PSC will make a decision next February.
Carper has criticized the plan submitted by Appalachian Power Company to use $110 million of its $235 million in tax savings to address costs for fuel and the clearing of vegetation from power lines. He softened that criticism somewhat on Friday.
“I’m beginning to see a difference in the maintenance of the lines. I’m beginning to see a difference in the outages. I think we’re making some progress there as well,” he said.
No word on when the PSC will make a decision on the West Virginia Water Company proposed settlement or one from Appalachian Power which was also filed earlier this week.