Five Things From West Virginia American Water's Testimony to the PSC Regarding the Elk River Spill

In May, the Public Service Commission of West Virginia opened a general investigation into West Virginia American Water’s response to January chemical…

In May, the Public Service Commission of West Virginia opened a general investigation into West Virginia American Water’s response to January chemical spill at Freedom Industries. The investigation followed heavy scrutiny from the public over the water company not shutting down their intake along the Elk River downstream of the spill.

As part of the investigation, West Virginia American Water was required to submit testimony to the PSC outlining the company’s actions after becoming aware of the spill, a chronological listing of test results for MCHM as well as a narrative describing the process and factors used to decide whether to shut down their intake. The company was also asked to provide a description of agencies and external entities consulted following the spill, and a description of alternative sources of water treatment or supplemental sources of treated or finished water.

Here are five things to from West Virginia American Water’s testimony to the PSC:

1. West Virginia American Water Continues to Defend Their Position on Not Shutting Down the Intake

In testimony to the PSC, along with an attached statement prepared for the U.S. Chemical Safety Board, West Virginia American Water officials said it would have been a minimum of 45 days to get the water system back to full operations if they had shut the Kanawha Valley Treatment Plant down after the spill.  

Company president Jeffrey McIntyre and engineering manager Brett Morgan explained that the issuance of the “do not use” order was decided over shutting down the intake. According to testimony from both McIntyre and Morgan, the decision was made in cooperation with West Virginia Department of Health and Human Resources’ Bureau for Public Health. 

“Based on the Company’s familiarity and experience with the complexities of the Kanawha Valley system, the consensus reached with BPH was that a shutdown would have deprived the public of these basic aspects of water service for a considerable period of time,” Morgan said.

2. Average Wait Time for Calls to the Parent Company’s National Call Center was 18 Seconds

Aside from the toll free line to answer questions about the lifting of the “do not use” order by zones, West Virginia American Water’s parent company made changes at its national call center in Illinois. WVAW President Jeff McIntytre said calls to this location were designated “#1 priority” and  the average speed of answer for West Virginia customers from January 12 through January 19 to that location was 18 seconds.

3. Nearly 5,000 Water Samples Were Collected from January 9 to March 31

West Virginia American Water’s testimony indicated testing was conducted by at least eight labs. 2,235 samples were collected at the Kanawha Valley Treatment Plant and an additional 2,490 were collected throughout the distribution system.  As of February 25, concentrations of MCHM were below detectable levels (2 parts per billion), which was 500 times lower than the CDC’s recommended drinking water screening level threshold for the chemical (1 parts per million).

4. The Company Says No Treatment Alternatives or Sources of Treated Water Were Available

Brett Morgan, West Virginia American Water’s Engineering Manager, provided testimony regarding alternative treatment or water sources that the company may have been able to provide. He said the Kanawha Valley Treatment Plant is WVAW’s only treatment facility for the areas affected for more than 40 years. 

“The Elk River is the sole source of raw water to the Plant, and the Company did not have any workable options to consider on an emergency basis for temporary or permanent alternative sources of raw water following the Freedom Industries spill,” said Morgan in his portion of the testimony.

Morgan explained that there are a number of interconnections that allow West Virginia American Water the ability to help other smaller utilities but, he argued that none those facilities–alone or all together–could have replaced treatment and production at WVAW’s Kanawha Valley Treatment Plant.

5. Social Media Played a Significant Role for West Virginia American Water

“Liking” your local water utility may not be common practice for most but, West Virginia American Water used social media to help spread the word on the initial “do not use” order that was implemented after the Elk River spill. According to McIntyre’s testimony, West Virginia American Water saw a significant increase in reach on social media from the days before the spill to the days after, as their average Facebook total reach went from about 800 to 62,000. 

As the investigation continues, here’s a look at the procedural timeline for the case:

For now, you can take read West Virginia American Water’s entire testimony and view the additional exhibits here:

Public Service Commission Warning of Utility Scan

West Virginia’s Public Service Commission is warning residents about a scam by callers who claim to represent utility companies.

The PSC says a Parkersburg-area man reported that he had been bilked out of about $1,500 by a caller claiming to represent Appalachian Power Company.
 
Perpetrators of the scam threaten to shut off utility service unless a delinquent bill is paid within hours. They instruct customers to go to a store, obtain a pre-paid debit card, load money onto the card and use it to pay the bill over the phone. Scammers create a sense of legitimacy by making the utility’s name and phone number appear on the victims’ caller ID.
 
The PSC says legitimate utility employees would not specify a payment method.
 

Group Weighs in on APCo's Bid for W.Va. Power Plant

  West Virginia Citizen Action Group is asking state regulators to postpone a ruling on Appalachian Power’s request to acquire the remaining portion of a coal power plant.

The group said it filed a motion with the Public Service Commission on Monday asking it to order the company to look at buying other power plants instead.

Appalachian Power and Wheeling Power are asking to buy half of the Mitchell coal-fired generating plant in Moundsville.

West Virginia Citizen Action Group wants regulators suspend the case until the companies produce an economic analysis of the cost of purchasing plants for sale by Duke Energy and AES Corporation in Ohio.

The group says the move would protect ratepayers by having the company look at possible less expensive options to the Mitchell plant.

PSC Orders Power Companies to Stop Estimating Bills

The state Public Service Commission has ordered Mon Power and Potomac Edison to implement monthly meter readings and billings following customer complaints.

The PSC released an order Wednesday in an investigation into the billing, meter reading and customer service practices of the FirstEnergy subsidiaries.
 
Under the order, the companies must implement monthly meter readings and billings as quickly as possible, but no later than July 1, 2015.
 
It also requires the companies to maintain adequate staff to perform the readings and to submit monthly reports to the commission through December 2015.
 
Citizens’ groups said customers complained about receiving multiple and contradictory bills in the same month, among other issues.
 
Mon Power and Potomac Edison serve about 520,000 customers in 37 West Virginia counties.
 

W.Va. Regulators Won't Revisit Felman Power Rate

  State regulators aren’t going to revisit a special electricity rate for an idled manufacturer in Mason County.

The Public Service Commission on Wednesday denied two petitions asking it to reconsider the special rate. The PSC’s order says its April 3 decision will remain in effect.

The special rate plan would enable Felman Production to buy electricity from Appalachian Power at as much as $9 million per year off its full rate. The discounted rate would be calculated each month, based on commodity prices and the costs of raw materials used in production.

Felman has said the plan would allow its silicomanganese plant in New Haven to operate when commodity markets are weak.

The PSC’s Commission Advocate Division and the West Virginia Energy Users Group filed the reconsideration petitions.

Supreme Court Upholds PSC Approved Power Plant Sale

The West Virginia Supreme Court has sided with the state Public Service Commission on a decision to allow the sale of a Harrison County power plant.

The PSC approved the sale of Harrison Power Station in October 2013. In the deal, Mon Power would obtain about 80 percent ownership of the plant from Allegheny Energy Supply and become its sole owner.

In return, Allegheny would receive about 8 percent ownership of the Pleasants Power Station, becoming its sole owner as well, and $257 million. Mon Power has said they will pass the cost of the merger on to its consumers in their electricity rates.

The Citizen Action Group appealed the PSC’s decision, saying the price markup ruling violates stipulations of the merger agreement and contradicts commission policy.

The merger agreement CAG cites includes requirements for Mon Power to increase employment, invest in economic development, aid low income customers, increase energy efficiency programs, as well as other stipulations.

In a written opinion Wednesday, members of the state’s highest court disagreed with CAG and affirmed the original PSC approved agreement.

The transaction between Mon Power and Allegheny Energy, both First Energy subsidiaries, has already closed, but Mon has not yet increased rates for customers.
 

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