WSAZ Investigates | PSC hears proposed surcharge hike - WSAZ

WSAZ Investigates | PSC hears proposed surcharge hike

CHARLESTON, W.Va. (WSAZ) - West Virginia American Water Company has two increases pending before the state Public Service Commission -- an increase in the base rate that you pay for water every month, along with an increase in its surcharge for infrastructure.

That surcharge -- known as the Distribution System Improvement Charge -- was the focus of an evidentiary hearing Monday at PSC headquarters.

Combined, a customer’s bill could increase by approximately $17 to $25 a month, depending on how much water a household uses.

A WSAZ Investigation -- the High Cost of H2O-- has found the cost of that service has been steadily increasing West Virginia American Water’s monthly water bill -- doubling since 2005.

West Virginia American Water says its surcharge funds improvements to the system, including water lines and fire hydrants.

Robert Williams, director for the state’s Consumer Advocate Division, argued Monday surcharge is not a long-term fix for upgrading the company’s old water lines.

“We’ve seen rates double without really seeing the problem solved,” he testified. “If we keep going that route to fund all of these upgrades, we’re still not making a dent in the problem, but if we keep putting it on the backs of the ratepayers, it’s going to be unaffordable.”

A West Virginia American Water engineer, Michael Raymo, disagreed telling commissioners the surcharge has been effective in reducing consumer complaints in areas where the surcharge pays for improvements.

However, Raymo also also pointed out West Virginia American maintains 4,700 miles of water line, but the surcharge upgrades just 15 miles each year.

“If you start to look at the pockets that we have replaced, again it’s only 15 miles a year, you will see improvement,” he testified. “You will see a reduction in non-revenue water. You’ll see fewer call outs, and those customers, I would say, would say that it is working.”

The Consumer Advocate also has taken issue with how the money from the surcharge is being spent. Williams said he believes the funds should only be used to pay for water lines, services, meters and hydrants -- not economic development projects and new water tanks.

“Those are just reasonable investments that the company should be making already, that shouldn’t need the advanced, early recovery and accelerated recovery on the investment to be able to do it,” he testified.

If approved, West Virginia American proposes changes to the surcharge take effect in two phases -- one in January, the second in March of next year.

The Public Service Commission ordered closing arguments -- on the surcharge -- to be filed later this month. A final decision could come before the end of the year.

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