Rate Hike Story Archives - West Virginia Public Broadcasting

Failing Boone-Raleigh Sewage District Taken Over, Rate Hikes On The Way

West Virginia American Water (WVAW) completed its acquisition of Boone-Raleigh public service district’s sewage Wednesday. The 380 customers served by the utility will have a change in their billing as well. Under WVAW, the average customer using 3,400 gallons of water a month will be paying around $6 more for sewage.

West Virginia American Water (WVAW) completed its acquisition of Boone-Raleigh public service district’s sewage Wednesday.

The acquisition comes after the Boone-Raleigh sewage utility was deemed to be a failing wastewater system by the Public Service Commision (PSC) and owed $1.2 million in debt. The PSC looked to WVAW to take over the utility because it was close by and had the capacity to take over.

Government and External Affairs Manager Megan Hannah said West Virginia American Water began metering water Wednesday morning.

“Boone-Raleigh read their meters for the last time, so customers will receive a final bill from Boone-Raleigh Public Service District in the month of November,” Hannah said. “Starting today, those customers will have a meter read from West Virginia American Water, and they will receive their first bill from us in December.”

Hannah said WVAW has plans to invest hundreds of thousands of dollars into the sewage system to bring it up to state standards.

“Certainly, with any transition, we know that there could be some hiccups. So, we have communicated with our customers that we appreciate their patience as we go through this transition process,” she said.

The 380 customers served by this utility will have a change in their billing as well. Under WVAW, the average customer using 3,400 gallons of water a month will be paying around $6 more for sewage.

Currently WVAW is waiting for a decision from the PSC that would increase its customers’ bills for water and sewage. If approved by the PSC residents in the Boone-Raleigh public service district would see an increase of around $27 for the average user, from what they were paying before the acquisition.

However the PSC is also considering an income-based program that would issue discounts to low-income utility users on a sliding scale. This, if approved, would be a stackable discount with the existing 20 percent off that is applied to utility users who receive assistance from Department of Health and Human Resources programs.

“We do want to be cognizant of the fact that our customers are feeling the pressure everywhere when it comes to the prices that they’re paying,” Hannah said. “So, we have proposed this low-income discount program to the Public Service Commission as part of our rate case, which will essentially follow federal poverty guidelines. So based on household income.”

Jefferson County Citizens Discuss Water Utility Buyout, Solar Farm At Public Hearings

Jefferson County citizens voiced their opinions at a Public Service Commission hearing Monday on a potential buyout that would see West Virginia American Water purchase four local water and sewer utilities.

Updated on Wednesday, Feb. 8, 2023 at 10:19 a.m.; Thursday, Feb. 9 2023 at 4:00 p.m.

These include Jefferson Utilities, Inc., Valley Water and Sewer Services, East Jefferson Sewer Services and Shenandoah Junction Public Sewer, Inc.

PSC staff estimated the buyout would increase local rates by as much as 47 percent for water and 56 percent for sewer.

The overwhelming opinion of the locals present at the hearing, including Shepherdstown resident Michael Keefe, was that such an increase would be unfair to customers.

“We’re concerned that if the rate increases go up so much, that many residents in the lower income would not be able to pay for it, or we’ll have to cut back so much on water usage that it’s detrimental to their family plan and sanitation,” Keefe said.

Previously, PSC staff recommended that West Virginia American Water establish a five-year schedule to slowly bring customers’ rates in line with the company’s existing rates.

“I think even doing these rates over time, as what was suggested, I don’t believe in that, because then it just couches for more,” fellow local and ratepayer advocate Jacquelyn Milliron said. “It hides the fact that more rate increases just get put on top.”

Those in favor of the buyout argued that as a larger company, West Virginia American Water has more resources and infrastructure to help better serve the area.

“We understand that customers are facing a lot of different situations and circumstances in their own lives,” said Megan Hannah, Senior Manager of Government and External Affairs for the company. “We do want to make sure customers know that there are many, many customer assistance programs that we offer to help those that are struggling, those that are in need. And that is not a program that’s offered currently by JUI or any other utility here in the Eastern Panhandle.”

From Water To Watts

Also discussed in a separate PSC hearing earlier in the day was the creation of a 99 megawatt solar energy farm owned by Rippon Energy on an estimated 740 to 860 acres of land in the county. Rippon cited a $125 million investment in the project that would go towards creating an in-state workforce, and that ratepayers would not be affected as a result.

Residents in favor cited solar as a renewable energy source, with some local farmers who had volunteered their land to be used saying they should have a voice in what they use their land for. Residents opposed were concerned about the efficiency of solar energy, the loss of farmland and potential waste from the facility going into the nearby Potomac and Shenandoah rivers.

The Public Service Commission held an evidentiary hearing for the West Virginia American Water case Jan. 25 and plans to hold a similar hearing for the solar farm facility Feb. 23. As of the Monday hearing, no statutory deadline for either case’s final decision has been scheduled.

Editor’s Note: This story was updated to clarify the statuses and dates of both cases’ evidentiary hearings and the projected amount of acres the solar farm will be built upon.

Regulators Approve Rate Hikes for Mon Power, Potomac Edison

West Virginia regulators have approved a $96.9 million rate increase for Mon Power and Potomac Edison to cover the utilities’ fuel and other costs.

The Public Service Commission also has approved a separate rate hike of nearly $36.7 million to cover the cost of the First Energy subsidiaries’ vegetation management system.

Both rate increases approved this week will be effective Jan. 1.

Mon Power and Potomac Edison said Wednesday in a news release that the rate increases will add about $9 to the monthly bill of a typical residential customer using1,000 kilowatt-hours of electricity.

Both rate increases were negotiated by the utilities and the PSC staff, the Consumer Advocate Division, West Virginia Energy Users Group and the West Virginia Citizen Action Group.

Advocacy Group Seeks to Intervene in W.Va. Water Rate Case

An advocacy organization formed after a 2014 chemical spill has filed a petition to intervene in West Virginia American Water’s rate case.

The state’s biggest water utility is seeking Public Service Commission approval for a 28 percent rate increase. The company attributes the proposed increase to $105 million in system improvements since 2012 and $98 million in projects planned through February 2017.

Advocates for a Safe Water System said it filed a petition to intervene with the PSC on Friday. The organization said in the petition that any changes in rates should improve the safety of the water system and “otherwise promote the public interest.”

The organization was formed after the chemical spill sullied the utility’s water for 300,000 people for days.

W.Va. Utility Seeks 28 Percent Rate Increase

West Virginia’s biggest water utility wants to increase its rates by 28 percent.

On Thursday, West Virginia American Water announced a $25.5 million case to increase rates with the Public Service Commission.

The company attributes the proposed increase to $105 million in system improvements since 2012 and $98 million in projects planned through February 2017.

West Virginia American Water says the increase doesn’t include costs from the January 2014 chemical spill, which sullied its water for 300,000 people for days.

If approved, the average family using 3,256 gallons per month would see their monthly water bill increase from $41.27 to $52.90.

The minimum bill for 1,500 gallons would increase from $23.20 to $30.06.

The PSC has up to 300 days for review. New rates wouldn’t be effective before February 2016.