PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON COMMISSION REFERRAL ORDER

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1 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON At a session of the PUBLIC SERVICE COMMISSION OF WEST VIRGINIA in the City of Charleston on the loth day of December CASE NO PSD-19A HUNDRED-LITTLETON PUBLIC SERVICE DISTRICT, a public utility, Hundred, Wetzel County. Rule 19A application to increase sewer rates and charges and Request for Emergency Interim Rate Increase. COMMISSION REFERRAL ORDER The Commission approves the use of emergency interim rates and refers this case to the Division of Administrative Law Judges. BACKGROUND On October 3 1, 20 18, Hundred-Littleton Public Service District (Hundred- Littleton) filed an application to increase its sewer rates and charges and also requested emergency interim rates alleging that it is operating at a cash flow loss of $13,749 and has failed to pay annual debt service and the annual obligation into the reserve account. Hundred-Littleton proposed an interim increase of 43.4 percent. On November 13, 2018, Commission Staff filed an Initial Joint Staff Memorandum Including Recommendation for Interim Rates. Staff recommended the Commission approve the 43.4 percent emergency interim rate increase as proposed by Hundred Littleton. The interim rates will generate approximately $46,929 in additional annual operating revenue. DISCUSSION Hundred-Littleton is in need of emergency rate relief to avoid further financial distress. The Commission will order the emergency interim rates effective on and after the date of this order subject to refund pursuant to its authority under W.Va. Code a. The Cornmission will refer this matter to the ALJ Division for further proceedings.

2 FINDINGS OF FACT 1. Hundred-Littleton filed an application to increase its sewer rates and requested emergency rate relief. Application. 2. The District is in need of emergency financial relief in the form of emergency interim rates subject to refund. Joint Staff Memorandum, November 1 3, CONCLUSION OF LAW Consistent with the Staff analysis that shows financial distress in the absence of interim rates and the Commission s authority under W.Va. Code a, it is reasonable to grant interim rates subject to refund and refer this matter to the ALJ Division for further proceedings. ORDER IT IS THEREFORE ORDERED that an emergency interim rate increase, as reflected on the interim tariff sheets attached as Appendix A, is approved for Hundred- Littleton Public Service District, effective for bills rendered on and after the date of this Order. IT IS FURTHER ORDERED that the emergency interim rate authorized herein is subject to refund in the event the Commission finally determines that the rates are not cost justified. IT IS FURTHER ORDERED that within thirty days of the date of this Order, Hundred-Littleton Public Service District shall file an original and six copies of its revised tariff sheets reflecting the emergency interim rates approved in this Order. IT IS FURTHER ORDERED that Hundred-Littleton Public Service District publish the Notice of Emergency Interim Rate Increase, attached as Appendix B, one time in a newspaper published and of general circulation in the county where it provides service. This notice must be published as soon as possible but no later than seven days after the date of this Order. Hundred-Littleton Public Service District shall file the affidavit of publication immediately upon receipt. IT IS FURTHER ORDERED that this proceeding be referred to the Division of Administrative Law Judges for a decision to be rendered on or before June 28,2019. IT IS FURTHER ORDERED that Commission Staff shall file its report with the Commission on or before February 8,

3 IT IS FURTHER ORDERED that the applicant, as required by the Commission Rules for the Construction and Filing of Tariffs, 150 C.S.R. 2, Rule 8.2.f., shall mail separate notices to each individual customer of the requested rate increase on or before January 9, IT IS FURTHER ORDERED that the applicant shall provide the Commission with the appropriate certificate evidencing the mailing of separate notice on or before January 24, IT IS FURTHER ORDERED that if the participants desire an extension of the foregoing decision due date, they may seek an extension only on formal application to the C orniniss ion. IT IS FURTHER ORDERED that the Executive Secretary of the Commission serve a copy of this Order by electronic service on all parties of record who have filed an e-service agreement, by United States First Class Mail on all parties of record who have not filed an e-service agreement, and on Staff by hand delivery. A True Copy, Teste, LFH/sc ~ Ingrid Ferrell Executive Secretary

4 HUNDRED-LITTLETON PUBLIC SERVICE DISTRICT (sewer) CASE NO PSD- 19A APPROVED INTERIM TARIFF APPLICABILITY Applicable within the entire territory served. APPENDIX A Page 1 of 3 AVAILABILITY Available for general domestic, commercial and industrial service and sale for resale water service. (1,O) RATES (Customers with metered water supply) $ per 1,000 gallons (1,O) MINIMUM CHARGE No bill will be rendered for less than per month (1,O) FLAT RATE CHARGE (customers with non-metered water supply) Equivalent of 3,500 gallons of water usage, $57.58 per month TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant. A tap fee of $ will be charged to customers applying for service before construction is completed adjacent to the customer s premises in connection with a certificate proceeding before the Commission. This preconstruction tap fee will be invalid after the completion of construction adjacent to an applicant s premises that is associated with a certificate proceeding. A tap fee of $ will be charged to customers applying for service outside of a certificate proceeding before the Commission for each new tap to the system. DELAYED PAYMENT PENALTY The above schedule is net. On all accounts not paid in full when due, ten percent (10%) will be added to the net amount shown. This delayed payment penalty is not interest and is to be collected once for each bill where it is appropriate.

5 APPENDIX A Page 2 of 3 ETURNEDCHECKCHARGE 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. MUNICIPAL EXCISE TAX SURCHARGE The municipalities listed below, having imposed public utility tax computed on the basis of two percent of the revenues from sewer sales by the Hundred- Littleton Public Service District sewer utility within the corporate limits of such municipalities, shall be billed as a surcharge to the customers receiving service within said corporate limits. The sewer utility is required to collect the utility tax pursuant to West Virginia Code G8-13-5a. Customers receiving sewer service within the corporate limits of the specified municipality shall pay a surcharge based on the following rates. Town of Hundred 2% LEAK ADJUSTMENT $3.53 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. SECURITY DEPOSIT Not to exceed two-twelfths (2/12) of the average annual usage of the applicant s specific customer class, or fifty dollars, whichever is greater. This fee may be changed by applicable statutory provisions. (I) Indicates increase (0) Indicates omission in text

6 APPENDIX. A Page 3 of 3 SURFACE OR GROUND WATER SURCHARGE An additional amount shall be charged where surface or ground water is introduced into the sanitary system where evidence of a violation exists. Surcharge formula to be applied in cases where surface drainage is connected to the utility's sewer system. Applicability Whenever the utility has discovered that a customer's roof drain, downspout, storm sewer or similar facilities conducting surface water have been connected to the utility's sewer system, and such customer has failed to take appropriate action within thirty (30) days of receipt of a demand by the District in accordance with the Rules and Regulations of the Public Service Commission, to eliminate such connection, a surcharge will be imposed upon the customer calculated on the basis of the following formula: S= A x R x x C S = The surcharge in dollars. A = The area under roof and/or The area of any other water collection surface connected to the sanitary sewer, in square feet. R = The measured monthly rainfall, in inches = C = A conversion factor or 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. The utility should not impose the surcharge unless and until the customer has been notified by 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 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. Said surcharge shall be calculated and imposed for each month that said condition continues to ex Failure to pay the surcharge and or correct the situation shall give rise to the possible termination of water service in accordance with the Rules of The Public Service Commission of West Virginia.

7 APPENDIX B Page 1 of 1 CASE NO PSD- 19A HUNDMD-LITTLETON PUBLIC SERVICE DISTRICT, a public utility, Hundred, Wetzel County. Rule 19A application to increase sewer rates and charges and Request for Emergency Interim Rate Increase. NOTICE OF EMERGENCY INTERIM RATE INCREASE On October 3 1, 20 18, Hundred-Littleton Public Service District (Hundred-Littleton) filed an application requesting a water rate increase. To qualify for the optional rate procedure for small utilities established by Rule 8.2 (Old Rule 19-A) of the Public Service Cornmission Rules for the Construction and Filing of Tariffs (Tariff Rules), 150 C.S.R. 2, the annual gross revenue of the utility must not exceed $1,000,000. On the recommendation of Cornmission Staff, the Commission approved an emergency interim rate increase of 43.4 percent for Hundred-Littleton effective for bills rendered on and after December 10, The specific rates approved are as follows: RATES (Customers with metered water supply) $16.45 per 1,000 gallons MINIMUM CHARGE No bill will be rendered for less than per month FLAT RATE CHARGE (customers with nonmetered water supply) Equivalent of 3,500 gallons of water usage, $57.58 per month This emergency interim rate increase is applicable to all customers of Hundred-Littleton. The emergency interim rates are subject to refund if not justified by an ongoing Staff audit and final decision in this matter. Customers may review the specific emergency interim rate changes at the District s office. These rates are interim rates only and may be increased, decreased or left unchanged at the conclusion of this rate case. During the course of this proceeding the Staff of the Commission will recommend final rates for use by the District. Those rates will be published at a later date and may be protested at that time. HUNDRED-LITTLETON PUBLIC SERVICE DISTRICT