MORGANTOWN – The Public Service Commission has ordered a public hearing on the rate-increase request filed by Preston County Public Service District No. 1.
“Given the level of protests, the matter should be set for hearing,” the PSC said in its order.
The hearing is set for 6 p.m. March 9 in the Preston County Courthouse in Kingwood.
PSD 1 filed for the rate increase in August, but didn’t specify an amount it was seeking.
The letters of protest started coming in on Oct. 10 and involve allegations of financial mismanagement by the board, poor water quality and embezzlement. These issues are being discussed in a private social media group and residents have attended PSD1 meetings to air grievances since the letters started coming.
No charges have been filed concerning the alleged embezzlement.
As of Friday, 55 letters of protest had been filed with the PSC.
On Dec. 10, PSC staff filed a rate-increase recommendation to the PSC.
PSD1 serves about 1,540 customers in the Arthurdale area. Residential customers would see their monthly bill increase by 78 cents, based on the staff recommendation.
The residential rate would increase from $19.01 per 1,000 gallons for the first 3,000 gallons used ($57.03 total) to $19.27 per 1,000 gallons – $57.81 for 3,000 gallons. The represents a 1.37% increase.
Commercial rates, based on an average of 7,400 gallons, would increase by $1.62 or 1.34%. Industrial rates, based on an average of 78,200 gallons, would increase by $9.38 or 1.33%.
PSD1 said in its 2024 annual report it had total annual water operating revenues of $1,305,625. The proposed rate increase would bring in an additional $19,859.
Staff also recommended that PSD1 include a Cash Working Capital Reserve increment of $114,604, which is 8.3% of sales and forfeited discounts. The PSC noted in its order that PSD1 has been allotted $557,010 of reserve funds since the PSC began requiring this.
The PSC said the utilities analyst reviewed PSD1’s reserve accounts and determined “disbursements from the accounts did not meet the requirement to use funds for extraordinary and non recurring expenditures.”
