MORGANTOWN – Preston County Public Service District No. 1 has moved to dismiss a complaint against it, filed with the Public Service Commission by one of its customers.
Michelle Hatch, of Reedsville. Who has been a leading critic of the PSD1 board, filed the complaint on April 21, alleging misconduct and mismanagement. She is seeking a general investigation.
PSD1 filed its response and motion to dismiss on Friday.
Not counting two cover sheets, Hatch’s complaint spans 83 pages. Her complaint letter fills 6 ½ pages and the rest is attachments submitted as evidence.
Hatch cites states codes PSD1 allegedly failed to follow and other alleged misdeeds, including failure to report suspected fraud, failure to try to recover funds, misconduct, neglect of duty, incompetence, colluding by having “little meetings” at the chairman’s house with an employee, violation of open meetings law, falsifying paperwork and meeting minutes, signing falsified paperwork and minutes, and failing to follow PSC Records Preservation and Retention Policy.
The recent allegations by the Complainant have been so vehement that the West Virginia State Auditor’s Public Integrity and Fraud Unit (the “PIFU”) began a forensic audit of the District in the Fall of 2025. The District has provided the PIFU with most, if not all, of its financial records. Not to mention, District employees and board members have had numerous meetings with the PIFU’s investigation team. At this time, the PIFU’s forensic audit of the District remains ongoing and the District’s access to its financial records remains limited.
This is the second formal complaint filed. PSC staff are also investigating allegations submitted by Arthurdale resident Penny Nicholson, who once worked for PSD1.
PSD1’s Friday response notes that Hatch’s complaint is similar in substance to Nicholson’s – the two admitted at Tuesday’s board meeting that they are working together – and PSD1’s response is similar to the one it filed in Nicholson’s case.
PSD1 tells the PSC: “The recent allegations by the complainant have been so vehement that the West Virginia State Auditor’s Public Integrity and Fraud Unit (PIFU) began a forensic audit of the district in the Fall of 2025.”
PSD1 says it has provided PIFU with most, if not all, of its financial records. “Not to mention, district employees and board members have had numerous meetings with the PIFU’s investigation team. At this time, the PIFU’s forensic audit of the District remains ongoing and the District’s access to its financial records remains limited.”
PSD1 says none of the allegations involve the district’s provision of utility service. “Indeed, there is no allegation that the district is failing to provide safe and reliable water service to its customers. And there is no allegation that the District is improperly billing its customers for water service. In sum, the complaint includes no allegations over which the commission has jurisdiction.”
PSD1 denies it has violated any PSC regulation or any state law.
The proceeding has referred to the Division of Administrative Law Judges for a decision to be rendered on or before Nov.17.
Nicholson filed her complaint on March 10 and PSC staff filed its initial memorandum on April 8, informing the PSC it is investigating the matter.
