Lincoln PSD Up For Sale To W.Va. American Water

Lincoln County Public Service District (PSD) customers may soon see their rates go up, but service should improve as well with the sale of the financially troubled water utility.  

A proposed settlement filed with the Public Service Commission of West Virginia on Wednesday urged the sale of the Lincoln PSD to West Virginia-American Water Co. (WVAWC) for $12.9 million. 

The agreement calls for water rates for Lincoln customers to match those of West Virginia American customers over a 24-month period. They would be set at 83% at closing; changing to 92% in a year; and eventually reaching 100%. 

The district provides service to 2,532 customers primarily in Lincoln County, but with coverage in areas of Kanawha and Boone counties.  

The Lincoln County Commission (LCC) would receive payment after $5.7 million of the purchase price was subtracted for debt repayment and $432,500 was paid to The Thrasher Group for engineering work. 

In a joint petition filed by WVAWC and the LCC last year, they said the PSD “faces considerable cost and expense to continue operating the assets.” The county commission decided it was in the public’s best interest to dissolve the district and convey the assets to WVAWC. 

In addition to WVAWC, LCC, and the district, the settlement proposal was signed by PSC legal staff, the Consumer Advocate Division, The Thrasher Group, and the West Virginia Water Development Authority. 

As part of the settlement, the parties asked the PSC to cancel an evidentiary hearing scheduled for July 23. 

More information on this case can be found on the PSC website: www.psc.state.wv.us. Click on “Case Information” and access Case No. 25-0681-W-PC.