Ms. Ingrid Ferrell, Director Executive Secretary Division Public Service Commission of West Virginia PO Box 8 12 Charleston, WV 25323

Transcription

1 November 1 3 h, Via Hand Delivery Ms. Ingrid Ferrell, Director Executive Secretary Division Public Service Commission of West Virginia PO Box 8 12 Charleston, WV Re: Case No. 17- Elk Valley Public Service District Kanawha County, West Virginia Rule 42T Application to Increase Sewer Rates and Charges Dear Ms. Ferrell, I have enclosed on behalf of ELK VALLEY PUBLIC SERVICE DISTRICT, the original and twelve (12) Copies Of its RULE 4211 APPLICATION TO INCREASE ITS SEWER RATES AND CHARGES. Please file the enclosed Application and distribute the additional copies to the appropriate parties at the Commission. Thank you in advance for your attention to this matter, and please contact me should you have any questions. MISlrmf Enclosure (s) cc: Timothy Chapman, EVPSD John Blackwell, CPA

2 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON CASE NO PSD-42T ELK VALLEY PUBLIC SERVICE DISTRICT Kanawha County, West Virginia Rule 42T application to increase sewer rates and charges APPLICATION FOR RATE INCREASE Elk Valley Public Service District (the District ), respectfully applies to the Commission to increase the District s current rates and charges for sewer service. In support, the District states as follows: 1. The name and address of Applicant is: Elk Valley Public Service District, 100 Bream Drive, Elkview, West Virginia 25071, Phone number (304) The District is a public corporation, public service district and political subdivision of the State of West Virginia, organized and existing pursuant to the provisions of Chapter 16, Article 13A of the West Virginia Code. The District provides sewer service to approximately 4585 customers within its service territory located entirely within Kanawha County, West Virginia. 3. The 2016 flash flood devastated large portions of the District s service area. Not only did it destroy large sections of the District s collection system, it had a tragic and dramatic effect on its customers. Many customers residences were destroyed or made permanently unlivable. Many of these customers left the area. Thus, a drastic reduction in the District s gross revenue occurred. The District still has the basic operating expenses; however, it does not have the revenue to cover them.

3 The District has deferred this much needed rate increase in order to focus on restoring service to customers via fixing and replacing large portions of its system. This deferment can no longer occur. The District must operate on a financially basis and without this increase it will go deeper into debt. 4. The District has determined that, in order for it to meet its ongoing operation and maintenance expenses, debt obligations and working capital requirements it is necessary for the District to seek an across the board increase in its sewer rates and charges. This will result in approximately $225,949 in additional gross revenue per year, which is an average increase of 9%. 5. The District Tariff Rule 42 Exhibit in support of this application is attached and incorporated by reference as Exhibit A. 6. On October 12,2017, the advance notice of filing required by West Virginia Code a was submitted (Exhibit B), and received by the Commission. 7. Included with this Application in support of the District s proposal to increase its sewer rates and charges are the following other documents: a. b. A revised Tariff Sheet is attached as (Exhibit C). Evidence of the District outstanding long-term debt is already on file with the Cornmission but can be provided upon request (Exhibit D); c. District s State of the Art Report required by the commission s General Order No. 245-WS is already on file but is also enclosed (Exhibit E); d. A Report on Tariff Change which shows the proposed estimated annual effect on revenue, which report is in the form prescribed by the Commission s Tariff Form No. 2 (Exhibit F); and

4 e. A Public Notice of Change in Rates Upon Application With Proposed Effective Date, which notice is in the form prescribed by the Commission s Tariff Form No. 8 (Exhibit G). 8. In order that the District will not experience financial distress, it respectfully requests that the Commission expeditiously approve the District s proposed increased sewer rates and charges. WHEREFORE, Elk Valley Public Service District prays that this Commission allow the District s proposed increase in its sewer rates and charges relief that this Commission may deem just and proper. 017 ELK VALLEY PUBLIC SERVICE DISTRICT By Counsel ESQ. (WVSB #11174) 300 Summers Street, Suite 1500 Charleston, WV (304) (0) VERIFICATION AND EXHIBITS ATTACHED

5 ELK VALLEY PSD RATE INCREASE TABLE OF CONTENTS Exhibit A Exhibit B Rule 42 Financial Exhibit Notice of Filing Letter Exhibit C Revised Tariff Sheets - P. S. C. W. Va. No. 12 Exhibit D Outstanding Long-Term Bond Debt Resolutions ( LTBD ) Copies already in File with Commission (But also Available upon Request) Exhibit E Exhibit F State of the Art Report Pursuant to General Order No. 245-WS Tariff Form No. 2 Exhibit G Tariff Form No. 8

6 STATE OF WEST VIRGINIA COUNTY OF KANAWHA, to-wit: I, W. LAWRENCE WAGONER, as Chairman for ELK VALLEY PUBLIC SERVICE DISTRICT, named in the foregoing APPLICATION FOR SEWER RATE INCREASE being duly sworn, say that the facts and allegations contained therein are true, except so far as they are therein stated to be on information, I believe thein to be true. ELK VALLEY P SERVICE DISTRICT Taken, subscribed and sworn to before me this 25 day of October, 2017 by W. LAWRENCE WAGONER, as the Chairman for the ELK VALLEY PUBLIC SERVICE DISTRICT. My Commission expires on the 4 dayof )~Qv~Y. be(,2017

7 EXHIBIT A Rule 42 Financial Exhibit

8 October 12,2017 Com m issio ne rs Elk Valley Public Service District 100 Bream Drive Elkview, WV Pennsylvania Avenue, Charleston, WV P.O. Box 12328, Charieston, WV Telephone Fax Cellular jblackwell@suddenenkmail.com Dear Commissioners: Transmitted herewith are the Rule 42 Exhibits for the proposed emergency rate increase to correct the debt coverage deficiencies noted in last year's Annual Report and audit. The District's Annual report covering the twelve months ended June 30,2016, reported operating revenues of $2,588,279. Due to the flooding that occurred during June of 2016, the District has lost a significant number of users, and has seen declining overall consumption which is really the reason that has created this new rate case. During the year ended June 30,2016 the District showed an average customer base of 4,684 users for the twelve months then ended. For the period ending June 30,2017, that 12-month average has fallen to less than 4,585 or an average of 99 users. As a result of this decline, the District saw an operating revenue drop of $77,012 to only $2,511,267 for the year. This is nearly $loo,ooo lower than the total of $2,607,299 in operating revenue from the fiscal year ended June 30,2015. The District also operated under 3 tariffs during the year which makes the continued loss of revenue even more troublesome given the tariff increases granted by the WV Public Service Commission during this period. This exhibit also addresses additional chemical expenses that were not included in the test year or going level year since the flood as per the District Budget. In reviewing salary and wages for the test year ( ) and going level year ( , I have determined that after removing the amounts for FEMA flood related overtime, wages are pretty much as they were during the test year and have not been adjusted. The revenue adjustment that was made pro-forma results in an additional $225,949 being generated which represents a increase. This will bring the rate from the current service charge of $21.50 and per 1,000-gallon rate of $7.02 to service charge of $23.44 and a per 1,000-gallon rate of $7.65. This will result in a minimum bill of $23.44 and a 4,500-gallon flat rate charge of $57.87 (currently $53.09). These comparisons can be seen on Schedule D Schedule 3 on page 23 of the Exhibit. If you have any questions or need additional information, please let me know at your convenience. J Blackwell, CPA

9 SERVI T RULE 42 FISCAL YEAR ENDED JUNE 30,2016 JOHN D. BLA KWFl I, CPA PO Box Charleston, West Virginia Phone: (304) Fax: (304) October 12, 201 7

10 TABLE OF CONTENTS STATEMENT PAGE NUMBER A Statement of Net Income Schedule 1 - Detail of Operating Revenues Schedule 2 - Detail of Operation and Maintenance Expenses Schedule 3 - Depreciation, Depletion, and Amortization Schedule 4 - Taxes Other Than Federal Income Taxes Schedule 6 - Other Income Schedule 7 - Other Income Deductions B Plant In Service and Contributions Schedule 1 - Plant in Service Schedule 8 - Accumulated Provision for Depreciation Schedule 10 - Contributions in Aid of Construction Schedule 12 - Customer Deposits C DebVEquity Capital D Bill Analysis Schedule 1 - Per Books Rates Schedule 2 - Going Level Rates Schedule 3 - Pro-Forma Rates Tariff Schedule 1 - Per Books Schedule 2- Proposed Schedule 3 - Comparison of Tariffs F Comparative Balance Sheets Schedule 2 - Cash Flow Analysis Schedule 3 - Capital Additions Calculation G Detail of Adjustments Schedule 1 - Going Level Schedule 1 - Pro - Forma

11 ELK VALLEY PUBLIC SERVICE DISTRICT STATEMENT OF NET INCOME For the year ended June STATEMENT A Per Going Level Going Pro Forma STATEMENT OF NET INCOME Reference Books Adiustments Level Adiustments Pro Forma Operating Revenues SCH I 2,588,279 (77,012) 2,511, ,949 2,737,217 Total Operating Revenue 2,588,279 (77,012) 2,511, ,949 2,737,217 Operating Revenue Deductions: Operation and Maintenance Expenses SCH 2 1,224,792 10,703 1,235,495-1,235,495 Depreciation and Amortization: SCH 3 1,495,527 1,495,527 1,495, Taxes Other Than Federal Income Tax SCH 4 38,301 38,301 38,301 Total Deductions Operating Income/( Loss) - 2,758,620 10,703 2,769,323 2,769,323 (1 70,34 1 ) (87,7 1 4) (258,055) 225,949 (32,106) Non Operating income: Other Income SCH 6 7,666 (5,700) 1, ,966 - Other Income Deductions SCH 7 373,006 (1 7,297) 355, ,709 Net Income/(Loss) (535,681 ) (76,117) (61 1,798) 225,949 (385,849) Page 1

12 ELK VALLEY PUBLIC SERVICE DISTRICT DETAL OF OPERATING REVENUES For the year ended June 30,2016 Statment A Schedule 1 PSC & Per Going Level Adj Going ProForma Adj Level Adiustments No Pro Forma Books Adiustments No - Operatinq Revenue Sales of Wastewater Residential Revenues 2,183,200 (31,656) (1) 2,151, ,639 (7) 2,345, Commercial Revenues 295,559 (48,774) (1) 246,785 22,211 (7) 268, Industrial Revenues Revenues from Public Authorities 44,042 7,108 (1) 51,150 4,604 (7) 55,754 Total Measured Revenues 2,522,801 (73,321 ) 2,449, ,453 2,669,933 Other Operating Revenues Forfeited Discounts 62,898 (2,823) (2) 60,075 5,496 (7) 65, Other Wastewater Revenues 2,580 (867) (3) 1,713 1,713 Total Other Operating Revenue 65,478 (3,690) 61,788 5,496 67,284 Total Operating Revenue 2,588,279 (77,012) 2,511, ,949 2,737,217 Page 2

13 ELK VALLEY PUBLiC SERVICE DISTRICT DETAIL OF OPERATION AND MAINTENANCE EXPENSES For the year ended June 30,2016 STATEMENT A SCHEDULE 2 PSC && Collectins Exoenses Per Going Level Adj Going ProForma Adj && Adiustments & Level Adiustments & Pro Foma Operations 701.I Salaries and Wages - Employees Materials and Supplies Total Operations Expenses 74,635 74,635 74,635 8,031 8,031 8,031 82,666 82,666 82,666 ' Maintenance Materials and Supplies Total Collecting Expense 49,734 49,734 49, , , ,400 PumDina Ewenses Operations Salaries and Wages - Employees 74,635 74,635 74, Materials and Supplies 25,754 25,754 25, Rental of BuildinglReal Property 4,000 4,000 4,000 Total Operations Expense 104, , ,389 Maintenance Materials and Supplies 16,516 16,516 16,516 Total Pumping Expenses 120, , ,905 Treatment & Disposal ExDenses Salaries and Wages - Employees 74,635 74,635 74, Purchased Power 193, (4) 194, , Chemicals 32,442 13,809 (5) 46,251 46, Materials and Supplies 16,215 16,215 16, Maintenance Expense Treatment & Disposal Transportation Expenses 40,820 40,820 40, Miscellaneous Expenses 7,876 7,876 7,876 Total Treatment & Disposal 365,897 14, , ,594 Customer Account ExDenses Materials and Supply Expense Contractural Services Bad Debt Expense Total Billing & Collection Expense 186, , ,838 5,092 5,092 5, , , ,930 Administrative & General ExDenses Salaries and Wages Employees Salaries and Wages - Officers and Directors Employee Pension Plan and Benefits Materials and Supplies Contractural Services Insurance Advertising Expense Miscellaneous Expenses Total Administrative and General Expenses Total Operation & Maintenance Expense 111, , ,955 7,200 7,200 7,200 90,274 (3,994) (6) 86,280 86,280 12,116 12,116 12,116 39,034 39,034 39,034 72,967 72,967 72, ,724 79,724 79, ,660 (3,994) 409, ,666 1,224,792 10,703 1,235,495 1,235,495 Page 3

14 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF DEPRECIATION AND AMORTIZATION EXPENSE For the year ended June 30,2016 STATEMENT A SCHEDULE 3 DESCRIPTION Structures and Improvements: Collection 8, Transmission System Structures Pumping System Structures General Plant Structures Treatment Plant Structures STANDARD WEST VIRGINIA Per RATES Books 2-4% 2-4% 2-4% 2-4% Plant and Equipment: Service Connections and Accessories Transmission Mains and Accessories Distribution Equipment and Accessories Other Equipment 2-3% 2-3% 2-3% 2-3% Pumping System Plant Equipment: Electric Pumping Equipment IO - 20% General Plant: Office Equipment Transportation Equipment Tools and Shop Expense Miscellaneous General Plant Total General Plant 10-20% 20% 10-20% 20% Total Utility Plant $ 54,081,878 Total Amortization Total Depletion Total Depreciation 1,475,493 1,475,493 $ 1, Page 4

15 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF TAXES OTHER THAN FEDERAL INCOME TAX For the year ended June 30,2016 STATEMENT A SCHEDULE Per Going Level Adj Going ProForma Adj Books Adiustments & - Level Adiustments & Pro forma Taxes Other than Income Taxes PSC FEE WV DEP FICNMEDICARE UNEMPLOYMENT Total Taxes Other Than income Taxes 8,544 5,369 24,137 8,544 5,369 24,137 8,544 5,369 24, ,301 38,301 38,301 Page 5

16 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF OTHER INCOME For the year ended June 30,2016 STATEMENT A SCHEDULE 6 PSC - Acct Per Going Level Adj Going ProForma Adj Books Adiustments No - Level Adiustments No Pro Forma 419 Interest Income 414 Gain or Loss on Disposition of Property 4,435 4,435 4,435 4,435 4, Page 6

17 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF OTHER INCOME DEDUCTIONS For the year ended June 30,2016 STATEMENT A SCHEDULE 7 PSC - Acct Per Going Level Books Adiustments Adj p& Going Level Pro-Forma Adiustments Pro-Forma Interest on Long-Term Debt Interest on Customer Deposits 360,097 (4,63h) 355, , Total 360,256 (4, , ,617 Page 7

18 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF UTILITY PLANT IN SERVICE For the year ended June 30,2016 STATEMENT B SCHEDULE 1 PSC &t DESCRIPTION 2016 BALANCE ADDITIONS BALANCE BEGINNING (RETIREMENTS) END OF OF YEAR CHANGES - YEAR AVERAGE BALANCE Collections Plant Land and Land Rights Structures and Improvements Collections Sewers - Force Service to Customers Other Plant and Misc. Equipment Total Collection Ptant 69, ,041 70, , , ,533 21,528,270 21,528,270 21,528, ,475 7, , , , , ,160 22,815,413 7,854 22,823,267 22,819,340 System Pumping Plant Land and Land Rights Structures and Improvements Pumping Equipment Other Plant and Misc. Equipment Total System Pumping Plant Treatment and Disposal Plant Land and Land Rights Structures and Improvements Power Generation Equipment Treatment and Disposal Equipment Plant Sewers Outfall Sewer Lines Others Plant and Misc. Equipment Total Treatment and Disposal 336, , , , , ,260 4,668,146 12,306 4,680,452 4,674,299 1,539,546 1,539,546 1,539,546 6,919,870 12,306 6,932,176 6,926, ,193 7,142,476 2,370,428 4,260,433 2,856,337 57, , ,193 7,142,476 7,142,476 2,370,428 2,370,428 4,260,433 4,260,433 2,856,337 2,856,337 57,707 57,707 1,436,740 1,436,740 1,436,740 18,257,314 18,257,314 18,257,314 Page 8

19 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF UTILITY PLANT IN SERVICE For the year ended June 30,2016 STATEMENT B SCHEDULE General Plant Land and Land Rights Structures and Improvements Office Furniture and Equipment Transportation Equipment Tools, Shop and Garage Equipment Laboratory Equipment Communications Equipment Other Tangible Plant Total General Plant 114,083 4,611,535 59, , ,016 93,473 45,837 4,108 35,093 6,089,281 4, ,083 4,611,535 59, , ,016 93,473 49,945 35,093 6,093, ,083 4,611,535 59, , ,016 93,473 47,891 35,093 6,091,335 Total Wastewater Plant Construction Work in Progress Total Utility Plant in Service 54,081,878 24, ,830 (599,703) 54,717,708 (575,435) 54,106,146 54,094,012 36, ,979 54,142,273 54,429,991 Page 9

20 ELK VALLEY PUBLIC SERVICE DISTRICT ACCUMULATED PROVISION FOR DEPRECIATION For the year ended June 30,2016 STATEMENT B SCHEDULE 8 Descrbtion Balance Balance Beginning End Average Of Year Additions Of Year Balance 108 Accumulated Depreciaton of Utility Plant in Service 26,194,604 1,475,493 27,670,097 26,932,35 1 Total Accumulated Provision for Depreciation 26,194,604 1,475,493 27,670,097 26,932,351 Page 10

21 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF CONTRIBUTIONS IN AID OF CONSTRUCTION For the year ended June 30,2016 STATEMENT B SCHEDULE 10 DescriPtion Balance Balance Beginning End Average Of Year Additions Of Year Balance 271.O Contributions in Aid of Construction Less: Amortized Contributions Net Contributed Capital 24,097,250 2,000 24,099~2~0 24,098,250 24,097,250 2,000 24,099,250 24,098,250 Page 11

22 ELK VALLEY PUBLIC SERVICE DISTRICT CUSTOMER DEPOSITS For the year ended June 30,2016 STATEMENT B SCHEDULE 12 Description Balance Balance Beginning End Average Of Year Additions Of Year Balance CUSTOMER DEPOSITS 235 CUSTOMER DEPSOSITS Total Customer Deposits 49,253 (841) 48,412 48,833 49,253 (841) 48,412 48,833 Page 12

23 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF DEBT CAPITAL YEAR ENDING JUNE 30,2016 STATE M E NT C SCHEDULE 1 Debt Holder - PER BOOKS WDA Series A WDA Series B WDA Series A WDA Series B WDA Series A WDA Series A Original Oustanding Interest & Principal for yr Debt Nominal Date Date of Amount per Balance Coverage Sinking Service of Issue Maturity of Loan Sheet Rate Rqrment Fund Interest Principal Reserve Req. Totals 8/20/ /1/2026 5,227,400 3,221, % 115% FUNDED 273, , ,107 8/20/ /1/2026 1,282, , % 115% FUNDED 33,742 33,742 7/12/ /1/2029 1,388, , % ' 115% FUNDED 79,493 36, ,368 7/12/ /1/ ,701 23, % 115% FUNDED 1,650 1,650 10/1/ /1/ ,061,117 15,050, % 115% 602,040 60, ,626 3/13/ /1/1944 1,416,459 1,361, % 115% 7,496 43,929 4,670 56,095 Total Debt Service 27,438,230 21,000, , ,235 65,256 1,318,588 1,253,332 Debt Holder - GOING LEVEL Original Oustanding Interest & Principal for yr Debt Nominal Date Date of Amount per Balance Coverage Sinking!%Nice of issue Maturity of Loan Sheet Rate Rqrment Fund 1 nte r est Principal Reserve Req. Totals WDA Series A 8/20/ /1/2026 5,227,400 3,032, % 115% FUNDED 258, , ,107 WDA Series B 8/20/ /1/2026 1,282, , % 115% FUNDED 33,741 33,741 WDA Series A 7/12/ /1/2029 1,388, , % 115% FUNDED 76,506 39, ,368 WDA Series /12/ /1/ ,701 21, % 115% FUNDED 1,650 1,650 WDA Series A 10/1/ /1/ ,061,117 14,448, % 115% 602,040 60, ,330 WDA Series A 3/13/ /1/1944 1,416,459 1,317, % 115% 11,926 44,169 5,088 61,183 Total Debt Service 27,438,230 20,089, , ,126 65,378 1,323,379 Page 13

24 Elk Valley Public Service District DETAIL OF DEBT CAPITAL For the years ending after June 30,2016 Statement C Schedule 2 LONG TERM DEBT - PRO FORMA - YEAR PRINCIPAL INTEREST Admin Fee TOTAL , , , , ,591 5,438,174 4,100,991 3,250,510 3,256, , ,007, , , , , , ,394 69,514 12,846 6,736 1,045 2,623,763 49,188 49,188 49,188 49,188 49, , , , ,941 13,722 1,243,426 1,320,401 1,319,204 1,315,751 1,315,751 1,315,751 6,650,509 4,416,446 3,509,297 3,509, ,518 24,874,812 Page 14

25 ELK VALLEY PUBLIC SERVICE DlSTRiCT BILL ANALYSIS - PER BOOKS STATEMENT D Schedule 1 RESIDENTIAL PER BOOKS Number of Gallons Minimum Total Bills (000) Rate Revenue Tarifffrom Jury 2015 to lune 2016 Service Charge 52, ,086, Consumption Charge (per 1,000 gallons) ,133, Revenue per Analysis 2,220, Total Revenue per Analysis Correction Factor Residential Revenue 168,703 2,220, ,220, COMMERCIAL PER BOOKS Tariff from July 2015 to June 2016 Service Charge Consumption Charge (per 1,000 gallons) Revenue per Analysis Revenue per Analysis Correction Factor Commercial Revenue 3, , , , , PUBLIC AUTHORITIES PER BOOKS Tariff from July 2015 to June 2016 Service Charge Consumption Charge (per 1,000 gallons) Revenue per Analysis , , , Revenue per Analysis Correction Factor Industrial Revenue 44, , TOTAL REVENUE PER BOOKS Page 15

26 ELK VALLEY PUBLIC SERVICE DISTRICT BILL ANALYSIS - GOING LEVEL For the year ended June 30,2016 Statement 0 Schedule 2 RESIDENTIAL GOING LEVEL Number of Gallons Minimum Total Bills (000) Rate Revenue Tar# from July 2016 to December 2016 Service Charge , Consumption Charge (per 1,000 gallons) , Revenue per Analysis 1,118, Correction Factor Tariff from July 2016 to December 2016 Residential Revenue 1,115, Tar.lff from January 2017 to Aprfl2017 Service Charge Consumption Charge (per 1,000 gallons) , , Revenue per Analysis 711, Correction Factor Residential Revenue 709, Tariff from Moy la June Service Charge Consumption Charge (per 1,000 gallons) , , Revenue per Analysis 366, Correction Factor Residential Revenue 364, TOTAL RESIDENTIAL GOMG LZVEL Service Charge Consumption Charge (per 1,000 gallons) Revenue per Analysis Correction Factor Residential Revenue ,086, ,109, ,195, ,190, COMMERCIAL GOING LEVEL Number of Gallons Minimum Total Bills (000) Rate Revenue Turi'from July 2016 to December 20J6 Service Charge Consumption Charge (per 1,000 gallons) Tariff from July 2016 to December 2016 Tarifffrom January to April Revenue per Analysis Correction Factor Commercial Revenue , , , , Service Charge Consumption Charge (per 1,000 gallons) Revenue per Analysis Correction Factor , , , Page 16

27 ELK VALLEY PUBLIC SERVICE DISTRICT BILL ANALYSIS - GOING LEVEL For the year ended June 30,2016 Commercial Revenue 74, Statement D Schedule 2 Tarifl from Muy to June 2027 Service Charge Consumption Charge (per 1,000 gallons) TOTAL COMMEUCIAL GOING LEVEL Revenue per Analysis Correction Factor Commercial Revenue , , , , Service Charge , Consumption Charge (per 1,000 gallons) , Revenue per Analysis 245, Correction Factor Commercial Revenue 245, Public Authority GOING LEVEL Number of Gallons Minimum Total Bills (000) Rate Revenue Tarifffrth Juiy 2016 to December 2016 Service Charge Consumption Charge (per 1,000 gallons) Tariff from July 2016 to December 2016 Tarifl from January to April 2017 Revenue per Analysis Correction Factor Public Authority Revenue , , , ' , Service Charge Consumption Charge (per 1,000 gallons) Tur@from May 2011 to June 2017 Revenue per Analysis Correction Factor Public Authority Revenue , , , , Service Charge Consumption Charge (per 1,000 gallons) TOTAL PUBLIC AUTHORITY GOING LEVEL Revenue per Analysis Correction Factor Public Authority Revenue , , , Service Charge Consumption Charge (per 1,000 gallons) Revenue per Analysis Correction Factor Commercial Revenue , , , , TOTAL ELK V A ~ GOiNG Y LEVEL 2,485, Page 17

28 ELK VALLEY PUBLIC SERVICE DISTRICT BILL ANALYSIS - PRO FORMA For the year ended June 30,2016 Statement D Schedule 3 RESIDENTIAL PRO FORMA Service Charge Consumption Charge (per 1,000gallons) COMMERCIAL PRO FORMA Revenue per Analysis Correction Factor Residential Revenue Number of Gallons Minimum Total Bills (000) Rate Revenue 51, ,217, , ,243, ,460, ,396,107 Service Charge Consumption Charge (per 1,000 gallons) Revenue per Analysis 2, , Correction Factor Commercial Revenue 266,079 Public Aut>orities PRO FORMA Service Charge Consumption Charge (per 1,OOO gallons) Revenue per Analysis , , , ,923.7a Correction Factor Public Authority Revenue 54,825 TOTAL REVENUE PRO-FORMA 2,717,010 Page 18

29 STATEMENT D SCHEDULE 1 CURRENT TARIFF YEAR ENDED JUNE 30,2016 ELK VALLEY PUBLIC SERVICE DISTRICT RULE 42 EXHIBIT APPLICABILITY Applicable within the entire territory served. AVAILABILITY Available for general domestic, commercial service, and industrial service RATES (Customers with metered water supply) Customer Charge: Commodity Charge: $ per customer per month $ 7.02 per 1,000 gallons of water used per month MINI~UM CHARGE No bill will be rendered for less than $21.50 per month, which is equal to the monthly customer charge. FLAT RATE CHARGE (Customers with non-metered water supply) Equivalent to 4,500 gallons of water, $53.09 DELAYED PAYMENT PENALTY The above schedule in net. On all accounts not paid in full within twenty (20) days, ten percent (1 0%) will be added to the net current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate. SERVICE CONNECTION FEE $250 INCREMENTAL COST OF WASTEWATER TREATMENT $1.16 per 1,000 gallons is to be used when the bill reflects unusual water consumption which can be attributed to eligible leakage on the customer's side of the meter. This rate shall be applied to all such consumption above the customer's historical average usage. DlSCONNECT/RECONNECT/ ADMIN FEE Whenever water service has been disconnected for non-payment of sewer bills, a disconnection fee of $20.00 shall be charged. Whenever water service which has been previously disconnected or otherwise withheld for nonpayment of sewer bills is reconnected, a fee of $20.00 shall be charged. TOWN OF CLENDENIN PUBLIC UTILITY EXCISE TAX Pursuant to an Ordinance of the Town of Clendenin, passed October 27,1997, there is hereby imposed on all customers residing within the Town Limits of Clendenin, a 2% excise tax on comsumption or use of the services of Elk Valley Public Service District, to be collected by Elk Vally and remitted to the Town of Clendenin. Page19

30 STATEMENT D SCHEDULE 1 CURRENT TARIFF YEAR ENDEDJUNE 30,2016 ELK VALLEY PUBLIC SERVICE DISTRICT RULE 42 EXHIBIT SEWER SURCHARGE 1. The connection of surface drains to the sanitary sewer system is prohibited. Surface drains shall include surface water, groundwater and water from roof drains, downspouts, storm sewers or similar facilities. 2. A surcharge shall be added to the customer's sewer bill where evidence exists of roof drains downspouts, storm sewers or similar facilities connected to the sanitary sewer system 3. The surcharge shall be calculated in accordance with the following formula: S A R C S = Ax R x x C - The surcharge in dollars - The area under roof andlor the area of any other water collection surface connected to the sanitary sewer, in square feet - The measured monthly rainfall, in inches A conversion factor to change inches of rain x square feet of surface to thousands of gallons of water - The District's approved rate per thousand gallons of metered water usage 4. The surcharge will not be imposed unless and until the customer is notified by certified mail, return receipt requested, or by hand delivery, that it has been established by smoke testing, dye testing, or on-site inspection that rain or other surface water is being introduced into the sanitary sewer system at the cusomer's location, and that the customer has not acted within thirty (30) days from receipt of such notice to divert the water from the sanitary sewer system. 5. The surcharge will be calculated for each calendar month, beginning with the first full month after the expiration of the thirty (30) day period hereinbefore described, and will be added to the next regular monthly billing Page20

31 STATEMENT D SCHEDULE 1 PROPOSED TARIFF YEAR ENDEDJUNE 30,2016 ELK VALLEY PuaLic SERVICE DISTRICT RULE 42 EXHIBIT APPL ICABI LIP' Applicable within the entire territory served. AVAILABILITY Available for general domestic, commercial service, and industrial service RATES (Customers with metered water supply) Customer Charge: Commodity Charge: $ per customer per month $ 7.65 per 1,000 gallons of water used per month MINIMUM CHARGE No bill will be rendered for less than $23.44 per month, which is equal to the monthly customer charge. FLAT RATE CHARGE (Customers with non-metered water supply) Equivalent to 4,500 gallons of water, $57.87 DELAYED PAYMENT PENALTY The above schedule in net. On all accounts not paid in full within twenty (20) days, ten percent (10%) will be added to the net current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate. SERVICE CONNECTION FEE $250 INCREMENTAL COST OF WASTEWATER TREATMENT $1.16 per 1,000 gallons IS to be used when the bill reflects unusual water consumption which can be attributed to eligible leakage on the customer's side of the meter. This rate shalt be applied to all such consumption above the customer's historical average usage. DlSCONNECT/RECONNECT/ ADMIN FEE Whenever water service has been disconnected for non-payment of sewer bills, a disconnection fee of $20.00 shall be charged. Whenever water service which has been previously disconnected or otherwise withheld for nonpayment of sewer bills is reconnected, a fee of $20.00 shall be charged. TOWN OF CLENDENIN PUBLIC UTILITY EXCISE TAX Pursuant to an Ordinance of the Town of Clendenin, passed October 27, 1997, there is hereby imposed on all customers residing within the Town Limits of Clendenin, a 2% excise tax on comsumption or use of the services of Elk Valley Public Service District, to be collected by Elk Vally and remitted to the Town of Clendenin. Page2 1

32 STATEMENT D SCHEDULE 1 PROPOSED TARIFF YEAR ENDED JUNE 30,2016 ELK VALLEY PUBLIC SERVICE OISTRICT RULE 42 EXHIBIT I. The connection of surface drains to the sanitary sewer system is prohibited. Surface drains shall include surface water, groundwater and water from roof drains, downspouts, storm sewers or similar facilities. 2. A surcharge shall be added to the customer's sewer bill where evidence exists of roof drains downspouts, storm sewers or similar facilities connected to the sanitary sewer system 3. The surcharge shall be calculated in accordance with the following formula: S A R C S = Ax R x x C - The surcharge in dollars - The area under roof and/or the area of any other water collection surface connected to the sanitary sewer, in square feet - The measured monthly rainfall, in inches A conversion factor to change inches of rain x square feet of surface to thousands of gallons of water - The District's approved rate per thousand gallons of metered water usage 4. The surcharge will not be imposed unless and until the customer is notified by certified mail, return receipt requested, or by hand delivery, that it has been established by smoke testing, dye testing, or on-site inspection that rain or other surface water is being introduced into the sanitary sewer system at the cusomer's location, and that the customer has not acted within thirty (30) days from receipt of such notice to divert the water from the sanitary sewer system, 5. The surcharge will be calculated for each calendar month, beginning with the first full month after the expiration of the thirty (30) day period hereinbefore described,*and will be added to the next regular monthly billing Page22

33 For the year ended lune 30,2016 SCHEDULE 3 Rates Service Charge Per 1,000 Gallons Current Pro - Forma Increased Increase Tariff Proeosed Dollars Percentage - $ $ $ 1.94 $ 7.02 $ 7.65 $ 0.63 Minimum Charge Per month $ $ $ 1.94 Flat Rate Charge (Customers with non-metered water supply) Per month (4,500 Gallons) Water Disconne~ion/Reconnection/Admistrative Fees Disconnection Reconnect ion Tap Fee Tap fee (Within a certificate proceeding) Tap fee (Outside a certificate proceeding) Leak Adjustment Per 1,000 gallons $ $ % $ $ % $ $ % $ $ % % % Page 23

34 ELK VALLEY PUBLIC SERVICE DISTRICT COMPARATIVE BALANCE SHEETS June 30,2015 and 2016 STATEMENT F Balance Beginning OfYear Balance End Increase u r or Decrease UTILITY PLANT Utility Plant In Service (501A-5016) Construction Work in Progress (504A-504E) Less Reserves for Depreciation, Amortization Net Wastewater Plant ,005 54,188,447 70,442 (26,194,604) (27.670,097) (I,475,493) ,518,350 (1,405,051) OTHER PROPERTY AND INVESTMENTS Other Investments (125) Sinking Funds (126.1) Depreciation Funds (126.2) Other Special Funds (127) Total Other Property and Investments 413, ( ) ,330,996 19, ,169 52, ,636 15,623 (94.013) 2,351,220 2,205,211 (146,009) CURRENTANOACCRUEDASSETS Cash (131) ,382 (3,411) Special Deposits ( ) 66,169 67,639 1,470 Customer Accounts Receivable (141) Other Accounts Receivable (142) Less Accum Provision for Uncollectible Accounts Net Receivables 412, , ,631 63,644 1,105 (32.978) (38,069) (5,091) 379, , Prepayments Other Current and Accrued Assets (bonds receivable) Total Current and Accrued Assets 493, , DEFERRED DEBITS Unamortized Debt Discount and Expanse ,764 59,803 Total Deferred Debits 63, , Total Assets and Other Debit6 30,831,857 29,406,981 (I,424,876) Page 24

35 ELK VALLEY PUBLIC SERVICE DISTRICT COMPARATIVE BALANCE SHEETS June 30,2015 and 2016 STATEMENT F Balance Beginning Balance End Of Year Increase or Decrease CAPITAL STOCK AND SURPLUS Earned Surplus (15,886,524) (16,396,352) ( ) LONG TERM DEBT Misc. Long-Term Debt Bonds Total Long Ten Debt 6,905 20,999, ,088,415 20,095,319 (91 1,106) ( ) CURRENT AND ACCRUED LIABILITIES Notes Payable Accounts Payable Customer's Deposits Taxes Accrued Interest Accfued Matured Long Term Debt and Interest Other Current and Accrued Liabilities Total Current and Accrued Liabilities , , , ,705 1,616, , , ,758 1,610,724 (67.878) (841) 221 (4,407) 21,871 45,053 (5,981) CONTRIBUTIONS IN AID OF CONSTRUCTION Contributions in Aid of Construction 24,097,250 24,099, Total Liabilities and Other Credits Total Liabilities and Equity 46,720,381 45,805,293 (9% 5,088) 30, ,406,941 (1,424,916) Page 25

36 ELK VALLEY PUBLIC SERVICE DISTRICT CASH FLOW ANALYSIS For the year ended June 30,2016 STATEMENT F SCHEDULE 2 Going Level Pro Forma Per Books Adjustments Going Level Adjustments Pro Forma Available Cash Residential service Commercial Service industrial Service Public Authority Forfeited Discounts Other Wastewater Revenues Total Cash Available Cash Requirements: Operating and maintenance expenses Taxes other than income taxes Total Cash Requirements before debt service Cash Available for Debt Service (A) Debt Service Requirements WV WDA A WV WDA B WV WDA A WV WDA B WV WDA A WV WDA * 2014 A PElA NOTE Subtotal Debt Service (6) Remaining cash surplus (deficit) Cash surplus available for capital additions Renewal and replacement reserve (2.5%) of Total Cash available Depreciation Reserve Funding Cash surplus available for capital additions 2,183,200 (31,656) 2,151, ,639 2,345, ,559 (48,774) 246,785 22, , ,042 7,108 51,150 4,604 55,754 62,898 (2,823) 60,075 5,496 65,571 2,580 (867) 1,713 1,713 2,588,279 (77,012) 2,511, ,949 2,737,217 1,224,792 10,703 1,235,495 1,235,495 38,301 38,301 38,301 1,263,093 10,703 1,273,796 1,273,796 1,325,186 (87,714) 1,237, ,949 1,463, , , ,652 33,741 33,741 33, , , ,608 1,650 1,650 1, , , ,040 50,874 50,874 50,874 3,452 3,452 3,452 1,270,017 1,270,017 1,270,017 55,169 (32,545) 225, ,404 64,707 62,782 5,649 68,430 65,378 65,378 65,378 (74,916) (160,705) 59,596 Coverage Ratio (A/B) Page 26

37 ELK VALLEY PUBLIC SERVICE DISTRICT CAPITAL ADDITIONS CALCULATION YEAR ENDING JUNE 30,2016 STATEMENT F SCHEDULE TOTAL Gross Additions 1,460, , , , , ,205, Debt (1,416,459.00) - Gain from disp of Uti1 plant (5,700.00) - CIAC (1,250.00) (1,750.00) (96,250.00) NET 1,454, (1,347,210.00) 115, (3,000.00) 389, (298,773.00) (229,147.00) (1,416,459.00) (5,700.00) (401,023.00) 382, CC Index Adjusted Net Additions 1,507, (1,432,084.23) 125, , (263,060.76) 373, Avg. Additions 1 74, Page 27

38 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF ADJUSTMENTS For the year ended June 30,2016 STATEMENT G SCHEDULE 1 Adjustment Number Goina Level Adiustments Increase (Decrease) Statement (1) Wastewater Sales - Measured Rev - Reisdential Wastewater Sales - Measured Rev - Commerical (48,7 74) Wastewater Sales - Measured Rev - Pub Auth. (31,656) A Schedule 1 7,108 $ (73,323)?j Per Books Adjustment Going Level after adjustment 2,522,801 (73,323) 2,449,478 To adjust per books to going level revenues for Fiscal Year. Flooding in June 2016 has seen a decrease of nearly 100 users on average in residential and commercial users during the going level period. This follows a drop in revenue from test year which was the test year used for the existing rate tariff Other Operating Rev. - Forfeited Discounts (2,823) A Schedule 1 Per Books Adjustment Going Level after adjustment 62,898 (2,823) 60,075 To adjust forfeited discounts based on the drop in going level revenue. _- (3) Other Operating Revenue - Other Wastewater Rev. (867) A Schedule 1 Per Books Adjusment Going Level after adjustment 2,580 To adjust other wastewater revenue to going level amounts (4) Purchased Power 888 A Schedule 2 Per Books Adjustment Going Level after adjustment 193, ,797 To adjust purchased power to reflect going level usage. There was no change in AEP tariff since test year. Page 28

39 ELK VALLEY PUBLIC SERVICE DISTRICT DETAIL OF ADJUSTMENTS For the year ended June 30,2016 STATEMENT G SCHEDULE 1 Adjustment Number Goinn Level Adiustments Increase ldecrease) Statement I (5) Chemicals 13,809 A Schedule 2 Per Books Going level for 4 loads of calcium per load 32,442 38,920 Going level additional chemicals 7,331 Total Going Level Chemicals after adjustment 46,251 Going Level Adjustment 13,809 I i During test year the District was was at a decreased inventory level for chemicals due and did not reorder due to the flooding conditions at the plant which also caused storage problems. It is expected that the District will require 4 loads of calcium nitrate as well as additional treatment chemicals going forward. (6) Employee Pension & Benefits 37,164 A Schedule 2 I Total Going Level Payroll 356,557 Adjustment to remove FEMA OT from GL Payroll (18,704) Adjusted going level payroll 337,853 Per books retirement 41,158 Going Level adjustment to reduce from 12-11% (3,994) Going Level retirement 37,164 i Pro - Forma Adiustments (7) Wastewater Sales - Measured Rev - Reisdential Wastewater Sales - Measured Rev. Commerical Wastewater Sales - Measured Rev - Pub Auth. 193,639 A Schedule 1 22,211 4,604 $ 220,453 Going Level 2,449,480 Adjustment Pro - Forma after adjustment 2, To reflect an increase in revenues generated by the rates and changes in the proposed tariff (See Statement D Schedule 3) Page 29

40 EXHIBIT B Notice of Filing Letter

41 October 12, Via Hand Deliverv Ms. Ingrid Ferrell, Director Executive Secretary Division Public Service Commission of West Virginia PO Box 812 Charleston, WV WM OL'F 72 ZQ'iT psc EXEC SEC EPd RE: ELK VALLEY PUBLIC SERVICE DISTRICT NOTICE OF INTENT TO FILE SEWER RATE CASE Dear Ms, Ferrell, Pursuant to West Virginia Code a, Elk Valley Public Service District, hereby notifies the Commission that it intends to file a rate case to increase rates for its sewer system no sooner than thirty (30) days from the date of this filing. Respectfully Submitted, ELK VALLEY PUBLE SERVICE DISTRICT 300 Summers Street, Suite 1500 Charleston, West Virginia (304) mis@,goodwingoodwin.com MISlrmf cc: EVPSD John Blackwell, CPA

42 EXHIBIT C Revised Tariff Sheets - P.S.C. W,VA. CODE R

43 P.S.C. W. Va. No. 10 Canceling P.S.C. W. Va. No. 9 ELK VALLEY PUBLIC SERVICE DISTRICT, a public utility OF ELKVIEW, WEST VIRGINIA RATES, RULES AND REGULATIONS FOR FURNISHING SEWERAGE AND SEWAGE DISPOSAL SERVICE In area embraced by the Elk Valley Public Service District, at Clendenin, Elkview, Pinch, Mink Shoals, Big Chimney, Meadowbrook and in Elk River area near Charleston, West Virginia Filed with THE PUBLIC SERVICE COMMISSION Of WEST VIRGINIA Issued,2017 Effective for service rendered on and after, -, 201 7, or as otherwise provided herein. Issued by authority of an order of The Public Service Commission of West Virginia in Case No PSD - 42T Dated or as otherwise provided herein Issued by ELK VALLEY PUBLIC SERVICE DISTRICT, a public utility By: It s: Manager

44 ELK VALLEY PUBLIC SERVICE DISTRICT P.S.C. W. Va. No. 10 Original Page No. 1 RULES AND REGULATIONS I. Rules and Regulations for the Government of Water Utilities, adopted by the Public Service Commission of West Virginia, and now in effect, and all amendments thereto And modifications thereof hereafter made by said Commission.

45 SCHEDULE I APPLICABILITY Applicable throughout entire territory served AVAILABILITY Available for general domestic, coinmercial and industrial service (I) (I) RATES (Customers with metered water supply) Service Charge: $23.44 per month Usage Charge: $7.65 per thousand (1000) gallons water usage/month MINIMUM CHARGE No bill will be rendered for less than $23.44 per month, which is the equivalent of the monthly customer charge. (11) FLAT RATE CHARGE (Customers with non-metered water supply) Equivalent of 4,500 gallons of water usage - $57.87 per month. DELAYED PAYMENT PENALTY The above schedule is net. On all accounts not paid in full when due within twenty (20) days, ten percent (10%) will be added to the net current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate. RETURNED CHECK CHARGE A service charge equal to the actual bank fee assessed to the sewer utility up to a maximum of $25.00, will be imposed upon any customer whose check for payment of charges is returned by the bank due to insufficient funds. (12) INCREMENTAL COST OF WASTEWATER TREATMENT $1.16 per 1,000 gallons is to be used when the bill reflects unusual water consumption, which can be attributed to eligible leakage on the customer s side of the meter. This rate shall be applied to all such consumption above the customer s historical average usage. (13) Indicates increase

46 SCHEDULE I (Continued) DISCONNECT/RECONNECT/ADMINISTRATIVE FEES Whenever water service has been disconnected for nonpayment of sewer bills, a disconnection fee of $20.00 shall be charged. Whenever water service which has been previously disconnected or otherwise withheld for non-payment of sewer bills is reconnected, a fee of $20.00 shall be charged. TOWN OF CLENDENIN PUBLIC UTILITY EXCISE TAX Pursuant to an Ordinance of the Town of Clendenin, passed October 27, 1997, there is hereby imposed on all customers residing within the Town limits of Clendenin, a 2% excise tax on consumption or use of the services of Elk Valley Public Service District, which is to be collected by Elk Valley Public Service District and remitted to the Town of Clendenin. SERVICE CONNECTION FEE A service connection fee of $ will be charged for each new customer or relocation of an existing customer.

47 SCHEDULE I1 SURCHARGE FORMULA TO BE APPLIED IN CASES WERE SURFACE DRAINAGE IS CONNECTED TO THE DISTRICT S SANITARY SYSTEM APPLICABILITY 1. The Connection of surface drains to the sanitary sewer system is prohibited. Surface drains shall include surface water, groundwater from roof drains, downspouts storm sewers or similar facilities. 2. A surcharge shall be added to the customer s sewer bill where evidence exists of roof drains downspouts, storm sewers or similar facilities connected to the sanitary sewer system. 3. The surcharge shall be calculated in accordance with the following formula: S A S =AxRx x C - the surcharge in dollars - the area under roof andor the area of any other water collection surface connected to the sanitary sewer, in square feet - the measured monthly rainfall in inches R a conversion factor to change inches of rain X square feet of surface to thousands of gallons of water c - the District s approved rate per thousand gallons of metered water usage 4. The surcharge will not be imposed unless and until the customer is notified by certified mail, return receipt requested, or by hand delivery, that it has been established by smoke testing, dye testing, or on-site inspection that rain or other surface water is being introduced into the sanitary sewer system at the customer s location, and that the customer has not acted within thirty (30) days from receipt of such notice to divert the water from the sanitary sewer system. 5. The surcharge will be calculated for each calendar month, beginning with the first full month after the expiration of the thirty (30) day period hereinbefore described, and will be added to the next regular monthly billing.

48 SCHEDULE I11 SURCHARGE FORMULA TO BE APPLIED TO A CUSTOMER PRODUCING UNUSUAL WASTE The charge for the treatment of unusual waste will be calculated on the basis of the following formula: Ci = VoVi + BoBi + SoSi Ci = vo = Vi = Bo = Bi = so = Si = Charge to unusual users per year Average unit cost of transport and treatment chargeable to volume, in dollars per gallons Volume of waste water from unusual users, in cubic feet per year Average unit cost of treatment, chargeable to Biochemical Oxygen Demand (BOD) in dollars per pound Weight of BOD from unusual users, in pounds per year Average unit costs of treatment (including sludge treatment) chargeable to total solids, in dollars per pound Weight in total solids from unusual users, in pounds per year When an unusual user is to be served, a preliminary study of wastes, and the cost of transport and treatment thereof, will be made. Waste containing material which, in judgment of the Elk Valley Public Service District, should not be introduced into the sewer system need not be handled by it. The results of this preliminary study will be used to determine the feasibility of the proposed sewer service and the charge thereof, based upon the formula set out above. Thereafter, unusual sewage will be monitored on a regular basis and at the conclusion of each fiscal year, based on the investigation aforesaid and audit of the Elk Valley Public Service District records, new costs figures will be calculated for use in the above formula. The cost of establishing the monitoring facilities shall be paid by the unusual user. Based on these audited figures, additional billings covering the past fiscal year will be made for payment by each unusual user, or refbnd by the Elk Valley Public Service District, as the case may be. Such audited figures will then be used for the preliminary billing for the next fiscal year, at the end of which an adjustment will be made as aforesaid.