CHARLESTON, W.Va. — An agreement has been reached regarding West Virginia American Water’s request for an infrastructure replacement program, which would increase the average residential customer bill by 52 cents a month, according to a news release from the company.
The agreement between the water company, the state Public Service Commission staff and the Consumer Advocate Division says $29 million is needed for system-wide improvements and the program, known as a Distribution System Improvement Charge, should go into effect at the beginning of 2017, pending approval from the PSC. The rate increase would occur before improvements would be made.
“The purpose of a DSIC is to address the national challenge of aging infrastructure by directing additional investment to areas where improvements are needed, with a particular focus on main replacement,” West Virginia American President Jeffrey McIntyre said in the release. “Along with the other parties, we hope that the Commission will accept this agreed-upon proposal as a fair and reasonable resolution of the request with the best interest of our customers at its center.”
The improvements, for which customers would pay a 1.09 percent surcharge, include $11 million in water main replacement projects and $7 million to construct two new water storage tanks to improve reliability on the west end of its Kanawha Valley distribution system, according to the release.
“Reasonable people understand the economic climate and realize that you must live within your means. However, the water company continues to want more — and to take more — out of the pockets of the public,” Kanawha County Commissioner Dave Hardy said in testimony filed with the PSC.
The PSC staff said in September that infrastructure improvements must be addressed eventually, even if that means a rate increase. The Consumer Advocate Division has been lobbying for a lower surcharge.
Replacing West Virginia American’s entire water system would cost $1.71 billion, according to PSC staff testimony. The company serves roughly 550,000 West Virginians.
Reach Max Garland at [email protected], 304-348-4886 or follow @MaxGarlandTypes on Twitter.