T ~ ~ R T PUBLIC O N SERVICE DISTRICT,

Transcription

1 P SION Entered: January 22, 2019 CASE NO PSD- 19A T ~ ~ R T PUBLIC O N SERVICE DISTRICT, a public utility, Buc~a~on, Upshur County, Rule 19A Application to increase sewer rates and charges. ~ C O M M E DECISION ~ ~ D This Decision approves the Staff recommended sewer rates and charges for use by the District for all bills rendered on and after the date this Decision becomes final. BACKGROUND On June 28, 2018, Tennerton Public Service District (District) filed with the Public Service Commission (Commission), pursuant to Rule 8.2 (formerly, Rule 19-A) of the Commission Rules for the Construction and Filing of Tariffs (Tariff Rules), an Application to change sewer rates and charges and also requesting emergency interim rates and proposed a 14.5% increase. The District stated it required a rate increase due to the need for two new lift station pumps and to pay $45,000 for past due charges owed to the City of Buckhannon for wastewater treatment. On July 17, 2018, Cornmission Staff filed an Initial Joint Staff ~e~orandum Including Interim Rate Recommendations. Staff recommended an interim rate increase that would generate additional revenue of $27,353 annually, which is a 5.71% increase over revenue generpted under the District s current rates. Staff further recommended that the interim changes and rates attached, be approved subject to refund. Staff recommended the case be referred and advised the District of the initial notice requirements of Tariff Rule 8.2. On July 25, 2018, the District filed a letter requesting items to be hrther reviewed and considered for inclusion in the final rate recommendation. On August 6,20 18, the Commission issued a Commission Referral Order that referred this matter to the Division of Administrative Law Judges for a decision to be rendered on or before February 25, 2019; ordered c om mission Staff to file its final report with the Commission on or before October 8, 201 8; an ordered the District to mail separate notice to each of its customers Public Service Cornmission

2 1 on or before September 7, 2018, and provide the appropriate ce~ificate to the Commission evi~encing the separate mailings on or before September 21, The Order also a Staff recommen ed interim rates, subject to refund, and ordered the istrict to publi file proof that pro er notice was provided. On October 3, 20 18, the District filed Tariff From No and an Affidavit of Publication for the approved emergency interim rates. On October 9, 2018, Commission Staff filed its Final Joint Staff Memorandum and Staff Report recommending a two step rate structure. Step 1 rates would generate a revenue increase of $60,129 annually, which is a 12.64% increase over rates in effect prior to this case. Step 1 rates are to take effect immediately and remain in effect for 24 months to meet the working capital reserve requirement set forth in W. Va. Code l(k). After 24 months, Staff recommended Step 2 rates will take effect which will generate a revenue increase of $24,667 annually, or a 5.18% increase over rates in effect prior to this case, and a $35,452, or 6.61%, decrease in Step 1 rates. Staff decreased the District s leak adjustment rate from $5.29 to $4.83 per thousand gallons. Staff recommended Step 1 rates will provide a surplus of $25,312, which exceeds the five year average of net plant additions, and provide a debt service coverage of %. Staff recommended Step 2 rates will provide a surplus of $25,3 19, which exceeds the five year average of net plant additions, and provide a debt service coverage of %. The surplus provided by Step 1 and Step 2 rates includes $15,000 to cover the replacement of two lift station pumps. Under Step 1 rates, the monthly bill for the average usage of 2,500 gallons for the District s residential customers will increase $2.80, or %, over prior rates. The monthly bill for the average usage of 11,000 gallons for the District s commercial customers will increase $12.32, or 12.21%. The monthly bill for the average usage of 82,600 gallons for the public authority customers will increase $92.51, or 12.21%. The monthly bill for the average usage of 250,600 gallons for the District s industrial customers will increase $280.67, or % over prior rates. Under Step 2 Rates, the monthly bill for the average usage of 2,500 gallons for the District s residential customers will increase $0.85, or 3.71%, over prior rates. The mpnthly bill for the average usage of 11,000 gallons for the District s c~mmercial customers will increase $3.74, or 3.71%. The monthly bill for the average usage of 82,600 gallons for the public authority customers will increase $28.08, or 3.71%. The monthly bill for the average usage of 250,600 gallons for the District s industrial customers will increase $85.20, or 3.7 1% over prior rates. On October 15, 2018, a Procedural Order was issued requiring the District to provide notice to its customers by posting, publishing and mailing an attached Tariff Form No. 10, and file with the Commission an affidavit of publication and a completed Tariff Form No Also, the District was directed to file the requisite Tariff Form No. 6-A. ecember 6,2018, the District filed an Affidavit of Publication. Public Sewice Commission 2

3 DISCUSSION The Staff recommended rates and charges should be approved since they are sufficient, but not more than sufficient, to cover the District s operation and maintenance expenses, debt service re~uirements, average annual additions and meet the working capital reserve requirement. F I ~ I N OF ~ S FACT 1. Tennerton Public Service District filed an Application to increase sewer rates and charges and also requesting emergency interim rates and proposed a 14.5% increase. The District 2. The District was provided an interim rate increase that would generate additional revenue of $27,353 annually, which is a 5.71% increase over revenue generated under the District s current rates. Commission Order, Aug. 6, The District provided notice of the interim rates. Filing, Oct. 3, The District serves approximately 884 customers in and around ~uc~annon, West Virginia. Final Joint Staff ~emorandum and Staff Report, Oct. 9,2018. % 6. Step 1 rates will generate a revenue increase of $60,129 annually, which is a 12.64% increase over rates in effect prior to this case. Step 1 rates are to take effect immediately and remain in effect for 24 months to meet the working capital reserve requir~ment set forth in W. Va. Code fj 24-1-l(k). Id. 7. After 24 months, Staff recomin~nded Step 2 rates will take effect and generate a rev~nue increase of $24,667 annually, or a 5.18% increase over rates in effect prior to this case, and a $35,452, or 6.61%, decrease in Step 1 rates. Id. Public Service Co~ission 3

4 9. ed Step 1 rates will Ius of $25,312, an 10. Staff recom~ended Step 2 rates will provide a surplus of $25,319, and provide a debt service coverage of %. Id. 11. The surplus provided by Staff recommended Step 1 and 2 rates exceeds the District s five-year average of net plant additions and includes $15,000 to cover the replacement of two lift station pumps. & CONCLUSION OF LAW It is appropriate to approve the Staff recommended sewer rates and charges because they provide revenue sufficient, but not more than sufficient, to cover the District s operation and maintenance expenses, debt service requirements, provide a reasonable surplus and meet the work~ng capital reserve requirement. ORDER IT IS T H E ~ F O 0 ~ ERED that the Approved Rates set forth in the attached Appendix A, be, and hereby are, approved to become effective for all bills rendered by Tennerton Public Service District on and after the date this Decision becomes a final order of the Commission. IT IS FURTHER ORDERED that Tennerton Public Service District file an original and at least six (6) copies of an appropriate tariff reflecting the rates and charges approved herein within thirty (30) days after this Decision becomes final. IT IS FURTHER ORDERED that this matter be removed from the ~o~mission s docket of open cases. I The Executive Secretary is ordered to serve this Order upon the Commission and its Staff by hand delivery, upon all parties of record who have filed an e-service agreement with the Commission by electronic service and upon all other parties by United States Certified Mail, return receipt requested. Leave is granted to the parties to file wri~en exceptions supported by a brief with the Executive Secretary of the Commission within fifteen days of the date of this Order. If exceptions are filed, the parties filing exceptions shall certify that all parties of record have been served the exceptions. Public Service Commission 4

5 Any party may request waiver of the right to file exceptions by filing an appropriate petition in writing with the ~xecutive Secretary. No such waiver, however, will be effective until approved by order of the commission. K. B. Walker Ad~inistrative Law Judge t Public Service Co~i ion 5

6 TE CASE NO PSD-19A AP~ROVED TARIFF Step 1 Rates (Effective for all services rendered on and after the date of the final order for a period of 24 months.) ~PLIC ABILITY Applicable to the entire territory served. AVAIL~ILITY Available for general domestic, com~ercial, and industrial and sale for resale water service. $10.29 per 1,000 gallons ~ I N I CHARGE ~ U ~ No bill will be rendered for less than the following: $20.58 per month, which is the equivalent of 2,000 gallons. FLAT RATE CHARGE (for customers with nonmetered water supply) Equivalent of 4,000 gallons of water usage $4 I. 16 per mont 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^ TAP FEE I The following charge is to be made whenever the utility installs a new tap to serve an applicant. A tap fee of $ will be charged to all customers who apply for service outside of a certificate proceeding before the omm mission for each new tap to the system. LEAK ADJUST~NT $4.83 per 1,000 gallons is to be used when the bill reflects unusual consumption which can be a~ributed 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. Public Service C ~~~ssion

7 TO A CUSTO ~RODUCI~~ ~ S U A ~ L A S T ~ 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 water from unusual users, in gallons per year it cost of treatment, chargeable to ~iochemical Oxygen D), in dollars per pound i = weight of BOD from 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 f'rorn 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. Waste containing materials which, in the judgment of Tennerton Public Service District, should not be introduced into the sewer system need not be handled by it. inary study will be used to deter~ine the feasi of the propos ewer service 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 utility records, new cost figures will be calcu~ated 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 refund given by the utility, 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. Public. Service Commission

8 VED T A~FF Step 2 Rates (Effective for all services rendered on and after 24 months after the final order) APPLICABILITY Applicable to the entire territory served. AVAILABILITY Available for general domestic, commercial, and industr~al and sale for resale water service. RATES (Customers with metered water supply) Each 1,000 gallons used per month $9.5 1 per 1,000 gallons rendered for less than the following: $19.02 per month, which is the (for customers with non-metered water supply) 00 gallons of water usage $38.04 per month 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. e following charge is to be made whenever the utility installs a new tap to serve an A tap fee of $ will be charged to all Customers who apply for service outside of a $ 5 certificate proceeding before the Commission for each new tap to the system. allons is to be used when the bill reflects unusual 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 custo~er s historical average usage.

9 S E ~ ~ LTO ra CUSTO E ~ DUCI~G ~ S U A WASTE L The charge for following formula: the treatment of unusual waste will be calculate Ci = VoVi+BoBi+SoSi on the basis of the Ci = vo = Vi = Bo = Bi = so = si = charge to unusual user per year average unit cost of transport and treatment c argeable to volume, in dollars per gallon volume of waste water from unusual users, in gallons per year average unit cost of treatment, chargeable to Biochemical Oxygen Demand BO^), 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 of total solids from unusual users, in pounds per year en an unusual user is to be served, a preliminary study of its wastes, and the cost of transport ind treatment thereof, will be made. Waste containing materials which, in the judgment of the rennerton Public Service District, should not be introduced into the sewer stem need not be iandled by it. e results of this ne the feasibili sewer service a erefore, based upon the for tbove. rhereafter, unusual sewage will be monitored on a regular basis and at the conclusion of each 'iscal year, based on the investigation aforesaid and audit of the utility records, new cost figures vi11 be calculated for use in the above fo~ula. The cost of establishing the monitoring facilities lhall be paid by the unusual user. ased on these audited figures, additional billings covering the Yast fiscal year will be made for ent by each unusual user, or refund given by th6 'utility, as he case may be. Such audited figures will then be used for the preliminary billing for the next iscal year, at the end of which an adjustment will be made as aforesaid. Public Service C o~issio~