CHARLESTON, W.Va. — It is left to the West Virginia Public Service Commission to approve or deny the sale of Bluefield’s sewer assets to West Virginia American Water Company.
The PSC opened an evidentiary hearing on Tuesday to assess WVAWC’s proposed acquisition of assets that the company does not describe as distressed but says are deteriorating.
“This one would not qualify by the legal definition of a distressed or failing utility; however, like many utilities in the state, it does have aging infrastructure, and that is a concern for the municipality,” WVAWC director of business development Brooks Crislip said in the hearing.
WV American Water plans to purchase the system for more than $34 million, more than $30 million of which is for assets located in West Virginia. The remaining assets are located across state lines in the town of Bluefield, VA, and operated as part of a joint system.
The existing proposal states that WVAWC would “contribute” the Virginia assets to an affiliate of the company identified as “Bluefield Valley Water Works Co.”
“West Virginia American Water, as an out-of-state entity, does not have the ability to own those assets; hence, Bluefield Valley Water Works would be the company owning those assets, just with regard to the assets in Virginia,” Crislip said.
Utility rates for Bluefield customers are currently established by an ordinance put in place in 2024 that continues through 2028. Full West Virginia American Water rates would not be paid until Jan. 1, 2029.
“The rates we’re proposing are to bring the Bluefield Valley customers under that approved ordinance in 2024, which I believe ends at the end of 2028, at which time they would be at full company rates,” WVAWC director, rates and regulatory, Scott Grace said.
WVAWC plans to leave setting the rates for both West Virginia and Virginia customers up to the PSC when the time comes. Grace cited a statute passed in Virginia that gives the West Virginia commission the power to do so.
“What we’re proposing to do is have all of the customer rates, both sides, set by the West Virginia Public Service Commission. There’s a Virginia statute specific to this situation that allows for that which has been approved,” Grace said.
Tuesday’s evidentiary hearing follows a public comment hearing held on Monday.