PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON

Transcription

1 , PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON Entered by the Public Service Commission of West Virginia, in the City of Charleston on the 3'd day ofoctober CASE NO S-PC-CN CITY OF OAK HILL Petition for consent and approval of acquisition of utility assets of Arbuckle Public Service District and Application for a certificate of convenience and necessity for a wastewater system improvement project. COMMISSION ORDER On September 30,2016, the City of Oak Hill filed a duly verified Petition for consent and approval of acquisition of utility assets of Arbuckle Public Service District and Application for a certificate of convenience and necessity for a wastewater system improvement project. Pursuant to , W.Va. Code, IT IS ORDERED that the City of Oak Hill give notice of the filing of said application, by publishing a copy of the attached Notice of Filing once in a qualified newspaper as provided in W.Va. Code et seq., published and of general circulation in counties where service is provided, making due return to this Commission ofproper certification of publication within thirty (30) days from the date of publication. IT IS FURTHER ORDERED that in the absence of substantial protest received within the stated thirty (30) day period, the Coinmission may waive formal hearing and render its decision on the application based on the evidence submitted with the application and the Commission's review thereof. A True Copy, Teste,., ~ /'>..., ~, ;,,,:<<',;+4. i e:,.<r. Ingrid Fenell, Executive Secretary IFkg s.doc

2 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON CASE NO S-PC-CN CITY OF OAK HILL Petition for consent and approval of acquisition of utility assets of Arbuckle Public Service District and Application for a certificate of convenience and necessity for a wastewater system improvement project. NOTICE OF FILING On September , the City of Oak Hill (City) filed a duly verified application for a certificate of convenience and necessity to construct a project (Project) to upgrade its existing Minden Road and Route 6 1 wastewater treatment plants, decommission the wastewater treatment plant of the Arbuckle Public Service District (District), construct transmission facilities to send wastewater froin District customers to the Minden Road Plant, and construct improvements to the CiQ s collection system. The City s certificate application was coupled with apetition for approval to acquire substantially all of the sewer utility assets of the District, which would occur upon closing on funding for the Project, which the City estimates will occur by May, The application is on file with and available for public inspection at the Public Service Commission, 201 Brooks Street, in Charleston, West Virginia. The City estimates that construction will cost approximately $23.625,000. It is proposed that the construction will be financed by a $1,000,000 grant from the West Virginia Infrastructure and Jobs Development Council (IJDC), an $8,625,000 IJDC loan payable over 40 years at 1% interest, and a 3 8 year West Virginia Department of Environmental Protection State Revolving Fund loan in the amount of $14,000,000 at 0% interest and a.5% administrative fee. The City adopted an ordinance on May 23, 2016 which included the following increased rates to go into effect upon substantial completion of the Project: On May , the City Council adopted increased sewer rates and charges which included the following rates to become effective upon substantial completion of this project. The City s current rates were enacted and became effective on July 8, 2016, in accordance with the Public Service Commission s rules for municipal rate change: 2

3 SCHEDULE I Applicable in entire territory served beginning July 8, Available for general domestic, commercial and industrial service. RATES_ (Customers with Metered Water Supply) First 2,000 gallons $13.80 per 1,000 gallons Next 38,000 gallons $10.80 per 1,000 gallons All over 40,000 gallons $ 9.10 per 1,000 gallons FLAT RATE CHARGE (Customers With Non-Metered Water Supply) Equivalent of 4,000 gallons of water usage, $49.20 per month. MINIMUM CHARGE Each customer shall pay a minimum charge of $27.60 per month which is tle equivalent of 2,000 gallons. LEAK ADJUSTMENT $8.00 per 1,000 gallons of water 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 consumptionabove the customer s historical average usage. ARBUCKLE SURCHARGES (Customers within the area formerly served by Arbuckle PSD) Each customer shall pay two surcharges per month for a period of 10 years from thedate the customer became a customer of the City of Oak Hill $5.00 per customer per month $2.50 per 1,000 gallons used SCHEDULE I1 Applicable in entire territory served upon substantial completion of the 2016 certificate project. Available for general domestic, coinniercial and industrial service. 3

4 MTES (Customers With Metered Water Supply) First 2,000 gallons $15.70 per 1,000 gallons Next ' 38,000 gaiions $12.30 per 1,000 gallons All over 40,000 gallons $10.30 per 1,000 gallons FLAT RATE CHARGE (Customers With Non-Metered Water Supply) Equivalent to 4,000 gallons of water usage, $56.00 per month. MINIMUM Charge Each customer shall pay a minimum charge of $ per month which is the equivalent of 2,000 gallons. LEAK ADJUSTMENT $8.00 per 1,000 gallons of water 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. ARBUCKLE SURCHARGES (Customers within the area formerly served by Arbuckle PSD) Each customer shall pay two surcharges per month for a period of 10 years from the date the customer became a customer of the City of Oak Hill $5.00 per customer per month $2.50 per 1,000 gallons used SCHEDULE Ill Applicable in entire territory served beginning May 1,2014. Available for general domestic, commercial and industrial service. 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 current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate. DISCONNECTIRECONNECTIADMINISTRATIVE FEES Water service will not be restored until all past due sewer bills have been paid in full and all accrued penalties plus a disconnection charge of $50.00 have been paid. There shall be a $50.00 reconnection charge paid prior to restoration of water service which has been previously disconnected for any reason. 4

5 In the event that City staff or agent collect money at the customer's residence in order to stop disconnection, an administrative fee of $50.00 shall be paid in addition to other charges to prevent disconnection. RETURNED CHECK CHARGE A service charge of $25.00 will be imposed upon any customer whose check for payment of charges is returned by the bank for any reason. SEWER SERVICE CONNECTION CHARGE The following charges are to be made whenever the City installs a new tap to serve an applicant. A tap fee of $ will be charged to all customers applying for new service before construction is completed adjacent to the customer's premises in connection with a certificate proceeding before the Commission. This pre-construction tap fee will be invalid after completion of construction adjacent to an applicant's premises that is associated with a certificate proceeding. A tap fee of $500.00, or the greater of the actual cost of the connection (solely determined by the City), will be charged to customers applying for service outside a certificate proceeding before the Commission for each new tap to the system. EFT. ACH. CREDIT CARD AND DROP BOX PAYMENTS A service charge will be imposed on EFT, ACH, Credit Card or Drop Box payments. The amount shall be equal to the actual charges to the City from the financial institution for processing payment. SECURITY DEPOSIT Not to exceed two-twelfths (211 2) of the average annual usage of the customer applicant's specific customer class, or fifty dollars, whichever is greater. This fee may be changed by applicable statutory provisions. SCHEDULE IV Applicable in entire territory served beginning May 1,2014. 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 City's sewer system. 5

6 Wherever the City has discovered that a customer's roof drain, downspout, storm sewer. or other similar facilities conducting surface water have been connected with the City's sewer system and such customer has failed to take appropriate action within thirty (30) days of receipt of a demand by the City 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=AxRx xc 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 A conversion factor to change inches ofrain x square feet of surface to thousands of gallons of water. C - The City's approved rate per thousand gallons of metered water usage. NOTICE TO CUSTOMER The City shall not impose the surcharge unless, and until, the customer has been notified by certified mail, return receipt requested, or by hand delivery, that is has been established by smoke testing, dye testing, or on-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. MONTHLY CHARGE: TERMINATION The surcharge shall be calculated and imposed for each month that the condition continues to exist. 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 and Regulations of the Public Service Commission of West Virginia. SCHEDULE V Applicable in entire territoly served beginning May 1,2014. SURCHARGE FORMULA TO BE APPLIED IN THE CASE OF USERS 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 = Charge to unusual users per year. Vo = Average unit cost of transport and treatment chargeable to volume, in dollars per gallon. Vi = Volume of waste from unusual users, in gallons per year. 6

7 Bo = Average unit cost of treatment, chargeable to Biochemical Oxygen Demand (BOD) in dollars per year Bi = Weight of BOD froin unusual users in pounds per year. So = Average unit costs of treatment (including sludge treatment chargeable to total solids), in dollars per pound. Si = Weight of total solids from unusual users, in pounds per year. When an unusual user is to be served, a preliminary study of its wastes, and the cost of transport and treatment thereof, will be made at the owner's expense. Waste containing material which. in the judgment ofthe City, 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 service and the charge thereof, based upon the formula set out above. Thereafter, unusual sewage service will be monitored on a regular basis and the conclusion of each fiscal year, based on the investigation aforesaid and the audit of the City records, new cost figures will be calculated for use in the above formula. The cost of establishing the monitoring facilities shall be paid for 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 refund given by the City, as the case may be. Such audited figures will then be used for the preliminary billing for the next year, at the end of which an adjustment will be made aforesaid. SCHEDULE VI Applicable in entire territory served beginning May 1,2014 AVAlL ABILITY Available for industrial service. Where the amount of sanitary sewage discharged into the City's wastewater collection andor treatment system by certain industrial plant or plants cannot be accurately determined by the use of the plant's water meter or meters, and said plant cannot install a flow meter to measure such waste, a special (50) gallons of water per each employee at the plant each working day. SCHEDULE VI1 Applicable in entire territory served beginning May 1,2014. Available for wastewater and leachate haulers. RATES Commodity Charge - Each customer shall pay a commodity charge of $50.00 per 1,000 gallons per load. Load will be the actual capacity of the truck or other transport method 7

8 delivering wastewater and leachate. Actual capacity shall be determined, or verified solely, by the City. DELAYED PAYMENT PENALTY The above schedule is net. On all current usage billings not paid in full when due, 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. RETURNEDCHECKCHARGE A service charge of $25.00 will be imposed upon any customer whose check for payment of charges is returned by the bank for any reason. SCHEDULE VI11 Applicable in entire territory served beginning May 1, Available for general domestic, commercial, industrial service, wastewater and leachate haulers. MUNICIPAL EXCISE TAX SURCHARGE The Municipality listed below, having imposed a Public City Tax computed on the basis of 2% of revenues from sewer sales by the City of Oak Hill's sewer City within the corporate limits of such municipality, shall be billed as a "surcharge" to the customers receiving service within said corporate limits. The City is required to collect the City Tax pursuant to West Virginia Code 8-13-Sa. Customers receiving sewer service within the corporate limits of the specified municipality shall pay a surcharge based on the following surcharge rates: Municipality City of Oak Hill Surcharge Rate 2% of the gross amount billed The Schedule I1 rates represent the following project-related increases over present rates for current Sanitary Board customers: ($3 INCREASE INCREASE (%I Residential (3,327 Gallons) $ % Commercial (12,276 Gallons) $ % Industrial (11,650 Gallons) $ % Public Authority (19,595 Gallons) $ % 8

9 The Schedule TI rates represent the following project-related increases over rates which the Sanilary Board will charge current District customers following acquisition of the District s sewer assets: ($) INCREASE Residential (3,900 gal.) $ 6.65 Cominercial(37,OOO) $ Industrial (86,000 gal.) $ (%) INCREASE 10.6% 11.2% 10.8% The City has no resale customers. These rate increases related to the project will produce approximately $881,326 annually in additional revenue, an increase of 40.7%. The City s acquisition of the assets of the Arbuckle Pubtic Service District will result in the following rate change for current Arbuckle PSD customers (parentheses indicate a decrease): (%) INCREASE Residential (3,900 gal.) $13.54 Commercial (37,000) $35.72 Industrial (86,000 gal.) $(45.55) (??) INCREASE 27.4% 7.7% (3.1?6) The changes shown are based on averages of all customers in the indicated class. Individual customers may receive changes that are greater or less than average. Anyone desiring to protest or intervene in this Certificate proceeding should file a written protest or request to intervene within thirty (30) days following the date of this publication unless otherwise modified by Commission order. Failure to timely protest or request to intervene can affect your right to protest aspects of this certificate case or participate in future proceedings. All protests or requests to intervene should briefly state the reason for the protest or request to intervene. Requests to intervene must comply with the rules on intervention set forth in the Commission Rules of Practice and Procedure. All protests and requests to intervene should be addressed to Ingrid Ferrell, Executive Secretary, P.O. Box 812, Charleston, West Virginia In the absence of substantial protest received within thirty (30) days of this publication, the Coininission may waive formal hearing and grant the application based on Commission review of the evidence submitted with the application. 9