The Public Service Commission will be holding a public hearing on WV American Water's proposed 28% rate increase:
Monday, October 26th
Public Service Commission (201 Brooks St.)
Be there at 5:30pm to be one of the people that packs the PSC and share your water story! (Hearing begins at 6:00pm.)
If you are frustrated by WV American Water's high rates, poor service and frequent main breaks, now is your chance to tell your story to the PSC Commissioners!
The Public Service Commission is required to rule on the proposed rate increase by February 2016. Rates are set to cover the utility's costs plus whatever the PSC determines to be a "reasonable" return (profit) on the company's investments. We are calling on the PSC to take a more active look at how the water company is investing money.
A couple weeks ago, Advocates for a Safe Water System filed testimony in the rate case highlighting WV American Water's flawed priorities. That testimony, written by Fred Stottlemyer (former manager of the Putnam Public Service District) notes that:
- The water company will take nearly 400 years to replace water mains at the current rate - and the proposed rate increase won't increase the rate of main replacement.
- The water company plans to spend more on meter replacement than on main replacement in the next two years
- The water company is able to capitalize and earn a profit on any segment of water main that it replaces in response to a leak. In other words, the water company is earning a profit on many of its leak repairs.
- The water company does not appear to have prioritized main replacement projects needed to improve reliability
Mr. Stottlemyer asked the Public Service Commission to order a management audit of the company's investment priorities. Read the testimony here.