NOTE: This story has been revised to clarify that the recommended decision came from the administrative law judge assigned to the case.
MORGANTOWN – Customers of Preston County Public Service District No. 1 would see a small rate hike, pending Public Service Commission concurrence with a recommended decision handed by an administrative law judge on Monday.
ALJ Cecelia Jarrell approved the staff’s recommendation filed in December.
What stands out, however, in the ALJ’s 18-page recommended decision are her comments on the public protests about alleged mismanagement by the PSD1 board. The recommended decision devotes just over seven pages to the public complaints and the March 9 public hearing she presided over in in Kingwood.
“Given the level of public interest in this case, it is very disappointing that none of the district’s board members were present at the hearing,” Jarrell said. “Their conspicuous absence would seem to lend credibility to the allegations regarding the board’s unresponsiveness.”
The new monthly residential rate would increase from $57.03 for the first 3,000 gallons to $57.81. This represents a 1.37% increase – 78 cents per month.
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, in its 2024 annual report, had total annual water operating revenues of $1,305,625. The rate increase will bring in an additional $19,859 the district needs to cover operating expenses, debt service and contributions to its state-mandated Cash Working Capital Reserve fund for emergencies.
“The staff-recommended rates and charges are sufficient, but not more than sufficient, to produce the level of revenue required by Preston County Public Service District No. 1, to cover all operation and maintenance expenses, debt service, taxes and necessary capital additions,” Jarrell noted.
The PSC received 55 letters of protest against the rate-increase request, filed last August. Had customers not filed the letters of protest, she said, the hearing would not have been held, given that PSD1 didn’t object to the staff recommendation.
In recounting the hearing, Jarrell remarked on the testimony of two PSD1 customers who have been vocal in their criticism since last October.
“Both customers made serious unsubstantiated accusations but showed genuine concern regarding the management and operation of the district. They both felt that the problems they alleged were directly impacting the rates being paid by customers, which are already higher than the rates being paid by customers of other neighboring water utilities,” she said.
“It was clear that the district’s customers are dissatisfied with the current board and its operation and management of the utility,” she continued. “Based upon the public comment, the customers were looking for answers and they want change.”
Jarrell emphasized that many of the allegations made at the public hearing were beyond the PSC’s scope of review. This is a rate case and the PSC hasn’t initiated a General Investigation into the district.
“Some of the issues raised would be properly within the authority of the County Commission, the County Prosecuting Attorney or the State Auditor’s Office,” she wrote. “The Public Service Commission’s focus in this case was upon the need for a rate increase, and not necessarily the operations and management of the district.”
Jarrell also noted that while it has broad regulation powers over the district, no one has petitioned the PSC to conduct a General Investigation over the district.
Jarrell concludes with an order and says parties may file written exceptions, supported by a brief, within 15 days of the order. If no exceptions are filed, the order will “become the order of the commission, without further action or order, five days following the expiration of the 15 day time period, unless it is ordered stayed by the commission.” The new rates take effect upon the order becoming official.
