Published: March 19, 2008 03:32 pm            

PSC approves water rate hike

It will cost many state water customers more to turn on their taps beginning next week.

On Wednesday, the state Public Service Commission approved a 14.9 percent rate increase for West Virginia American Water customers. The decision marked the settlement of a WVAW rate case that was filed last June, when the company originally sought a 24.9 percent hike for 166,000 customers in 19 counties, including Fayette, Kanawha, Raleigh, Mercer and Summers.

The rate case focused on the recovery of increased operating costs on the more than $411 million of capital invested in water facilities, according to a company press release. It marked the first rate change since July 2005.

The proposal drew complaints from numerous state residents, including those in Fayette County. Del. John Pino, D-29th District, worked with local residents to present petitions opposing the hike to the PSC.

At a public hearing in December, Pino said the increase would create undue hardships on many of his constituents. Instead, he suggested linking the rate hike to boosts in Social Security payouts over the past three years (the time period since the last water rate increase).

“I cannot face seniors, pensioners, widows, those on fixed incomes, the unemployed and the under-employed, the true demographics of my district, without voicing these concerns,” he said at the time. “14.9 percent is too large of an increase.”

“As the state’s infrastructure system ages, a significant amount of work has to be done to make improvements and strengthen our network of water treatment facilities,” West Virginia American Water President Wayne Morgan said this week. “Since 2004, West Virginia American Water has invested more than $63.8 million in its facilities, providing high quality water to more West Virginians than ever.”

The settlement, which was reached among the company and the PSC and other parties, calls for an increase of $14.5 million, or an overall 14.93 percent increase over current tariff rates.

Examples of projects completed across the state during that time include:

-- Water main replacement and reinforcement;

-- Water meter upgrades that are more accurate and can be read more efficiently;

-- Water quality equipment and treatment improvements to comply with state and federal regulatory requirements; and

-- Investments to facilities to maintain high service to customers.

For the average residential customer, the settlement will result in an increase of $5.10 per month. The new rates will become effective next week.

“Even with this rate adjustment, at about a penny a gallon, water will remain a good value for our customers,” said Morgan.

Customers may contact American Water’s call center toll free at 800-685-8660 with additional questions.

West Virginia American Water is the largest investor-owned water utility in the state, providing water services to more than 572,000 people.

        

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