Rate hearing occurs while West Virginia-American remains under scrutiny – WV MetroNews

Over the next few days, West Virginia’s Public Service Commission will consider a significant rate increase request by the state’s biggest water company.

The rate increase request has drawn extra scrutiny over the past few weeks after a water line broke resulting in pressure that pierced a gas distribution line, knocking out gas service for hundreds of residents of Charleston’s West Side.

Some residents of Charleston’s West Side have written letters specifically asking for a break on costs.

“Many people both directly and indirectly affected by this gas shutoff have had significant disruptions to their lives and suffered personal and economic harm. To increase their rates in the middle of the expensive winter utility months is shocking and adds insult to injury,” wrote Charleston resident Crystal Rider in a letter similar to other recent submissions. 

Charleston Mayor Amy Goodwin and members of City Council also filed a request for rate relief for the affected residents. The city officials asked either for outright rejection of the rate increase or delayed implementation for West Side residents.

“While this small action would not make West Side residents whole, it would at least allow them to avoid another drastic rate increase, as they are still recovering from a severe service interruption that was costly to them,” the city officials wrote.

Commissioners are set to hear evidence in the rate case for West Virginia-American Water Company starting at 9:30 a.m. Tuesday and possibly continuing until Thursday.

West Virginia-American Water is asking for an increase of just over $41 million — about 22.5 percent across the board to customers.

So, proposed monthly bill increases for the average residential customer using 3,000 gallons a month would be $18.95. For the average commercial customer using 16,000 gallons per month, the bump would be $101.08. And the increase would be $2,476.85 for the average industrial customer using 650,000 gallons a month.

The water company contends the rate increase reflects the cost of investments in water and wastewater upgrades that have been made since 2020 — plus upgrades projected through February 2025. Those investments total about $340 million.

“The most significant driver of this rate case is the Company’s ongoing infrastructure investment, which accounts for more than two thirds or approximately $36 million of our total requested revenue rate increase,” stated Robert Burton, president of West Virginia-American Water in written testimony.

“The Company’s aged infrastructure must be regularly replaced so that it can continue to provide its customers with safe, adequate, and reliable utility service. A majority of this investment supports the replacement of aging infrastructure in both its water and wastewater systems.”

The investments are necessary to keep water and wastewater service safe and reliable, Burton wrote.

“Such investments cannot be avoided and are in the long-term best interests of our customers. If such investment is not made, our customers will be adversely impacted in the long run as costs will increase even more.”

A public hearing early last month drew criticism from customers about the potential rate increase.

Written filings have also resulted in criticism of the proposal.

“I think we pay enough in utilities a lot of us barely making it as it is,” wrote Brenda Hill, a Nitro resident. “I think all the utility companies need to stop with raising everything, at least until we are out of the recession.”

Kanawha County Commission President Kent Carper, in written testimony, said the rate increases are unsustainable to average citizens.

“These demands are not only astronomical but also entirely unreasonable — it is nothing more than rate shock,” Carper wrote.

“The financial stability of West Virginians are at stake, and they must contend with the daunting challenge of balancing essential needs while under siege from inflated utility bills.”

County commission representatives from other parts of the state also filed protests.

“The Fayette County Commission strongly opposes this impractical and detrimental proposed rate increase request from West Virginia American Water and requests that it be denied,” wrote officials there.  

In Mercer County, commissioners wrote, “When local news agencies reported the rate increases West Virginia-American Water is seeking this year, the tone
of desperation and futility spread throughout the county.

“This commission recognizes that West Virginia-American’s cost of doing business and providing excellent service to Mercer County businesses and citizens has most likely increased. However, it is this commission’s hope that the WV Public Service Commission will recognize the adverse impact that the proposed rate hike will have upon citizens and seek out a compromise that reflects the challenges that our people are currently facing.”