West Virginia American Water Seeks Rate Increase to Cover Infrastructure Upgrades

West Virginia American Water filed an application with the Public Service Commission of West Virginia (PSC) to adjust its rates for water and wastewater service. The company is seeking a base water rate increase to produce additional revenues of $32.69 million per year, and an increase in wastewater rates to produce additional revenues of $220,000 per year.

According to the company, the rate increases are needed to cover approximately $200 million in system improvements to replace and upgrade aging infrastructure and factor in usage and population declines across the region.

“The vast majority of the costs we incur to provide water service to our customers are fixed costs and do not vary with the volume of water we sell,” West Virginia American Water President Brian Bruce said. “Unfortunately, these usage and population declines do not lessen the company’s need to renew and replace aging infrastructure and satisfy increasingly stringent drinking water regulations. This case demonstrates that we have been good stewards of our customers’ monthly water payments and have kept our operating expenses relatively flat for the past 10 years byworking more efficiently, improving processes, utilizing technology, and leveraging economies of scale.”

The PSC will conduct an extensive review of the company’s rate application and has up to 300 days to review the filing. Any new rates established by the PSC will not be effective prior to Feb. 28, 2019.

 

 

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