MALDEN PUBLIC SERVICE DISTRICT, A public utility, Kanawha County. Rule 42T application to increase Sewer rates and charges.

Transcription

1 CASE NO PSD-42T MALDEN PUBLIC SERVICE DISTRICT, A public utility, Kanawha County. Rule 42T application to increase Sewer rates and charges. PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON Entered: December 10,2015 RECOMMENDED DECISION This Recommended Decision grants increased rates for providing sanitary sewer service as set forth below. BACKGROUND On August 17, 2015, Malden Public Service District (Malden PSD) filed revised tariff sheets reflecting increased rates and charges of approximately sixteen percent for providing sewer treatment services for 3,358 customers in Kanawha County. Malden PSD attached a completed Tariff Form 2, Tariff Form 8 and a Tariff Rule 42 Financial Exhibit' to its filing. On September 4, 2015, the Commission suspended the revised tariff sheets and referred this matter to its Division of Administrative Law Judges (ALJ) for a Recommended Decision. On September 16, 2015, Malden PSD filed (i) an affidavit attesting to publication of a notice of this matter in the Gazett , a newspaper of general circulation in Kanawha County, (ii) a copy of a press release and (5) a completed Tariff Form 6. Also on September 16,2015, the Commission modified the deadlines for processing of this matter. On September 18, 2015, Malden PSD filed a revision to certain adjustments within its Tariff Rule 42 Financial Exhibit. On September 22, 2015, Staff filed an initial memorandum requesting that Malden PSD file additional financial information and noting that Malden PSD would seek a tolling of the statutory deadline. 1 Rules for the Construction and Filinr of Tariffs, 150 C.S.R. Series 2 (Tariff Rules). Public Service Commission of West Virginia

2 On September 23,2015, the presiding ALJ scheduled this matter for an evidentiary hearing on November 3,2015. Also on September 23, 2015, Malden PSD requested that the Commission to11 the running of the statutory deadline in this matter for thirty-two days. On September 29, 2015, Malden PSD filed additional information addressing the concerns identified in the September 22,2015 Staff Memorandum. On October 6, 2015, the Commission (i) toiled the running of the statutory deadline in this matter as requested and (ii) adjusted the deadlines for a Recommended Decision and a report from Staff. On October 15, 2015, Malden PSD moved to continue the hearing scheduled for November 3, It cited the extended deadlines granted by the Commission and noted that Staff did not object to the continuance. On October 16, 2015, the presiding ALJ rescheduled the evidentiary hearing in this matter for December 7, On November 17,20 15, Staff recommended that the Commission approve revised rates for Malden PSD that it projected would generate an additional $9,630 per year, or 0.59 percent. Staff observed that Malden PSD already complies with the reserve requirement of W.Va. Code l(k). It also recommended an increased leak adjustment rate. Finally, Staff recommended that the Commission reject the fee changes Malden PSD proposed. On December 1, 2015, Malden PSD filed a letter (i) stating that it did not object to the Staff recommendation, (ii) requesting cancellation of the scheduled evidentiary hearing and (iii) requesting a final order in this matter at the earliest opportunity. On December 2, 2015, the presiding ALJ cancelled the scheduled evidentiary hearing based on the representations within the December 1,2015 Letter. The Commission has also received five protests to the rates Malden PSD proposed in this matter. DISCUSSION The Staff Report filed on November 17,2015, determined that Malden PSD was operating at going level with a cash surplus of $65,840 on an annual basis. (Staff Tariff Rule 42 Financial Exhibit Statement F at Schedule 2.) Malden PSD currently has debt service coverage of percent at going level, but is required to maintain debt service coverage of at least 110 percent. Thus, Staff recommended increased rates that it projected to generate an additional $9,630 per year, or 0.59 percent. I1 Fkbhc Service Commission of West Vugmia 2

3 Rate Schedule Staff Recommended Malden PSD as filed Increase by Debt Service Available for percentage Coverage Plant Additions 0.59 percent $75,470 over approved percent rates percent $321,619 over approved percent rates Considering the Staff determination that Malden PSD is not meeting its bond coverage.equirements and the agreement between the parties, it is reasonable to adopt the increased rates ind charges Staff proposed for sanitary sewer service provided by Malden PSD as the final rates n this proceeding. The revised leak adjustment rate and tariff language changes Staff.ecommended are also reasonable. (W.Va. Code a, Tariff Rule 20.) Malden PSD will file in original and six copies of revised tariff sheets reflecting the rates and charges approved in this hder with the Commission Tariff Office within thirty days of the Recommended Decision iecoming a final Commission Order. (See. Tariff Rule 1.) The revised tariff sheets will also 'eflect that they are issued under the authority of the Commission in this proceeding. (Tariff Rule?l.) FINDINGS OF FACT 1. Malden PSD filed revised tariff sheets reflecting increased rates and charges to provide ianitary sewer service in portions of Kanawha County. (Application.) 2. Malden PSD is not meeting the coverage requirements of its debt obligations at going evel. (November 17,2015 Staff Recommendation at Statements C and F.) Pubhc Semce Commission of West Vug~tlla 3

4 3. Staff recommended an increase of 0.59 percent that it projected to generate an additional $9,630 and provide debt service coverage of percent. (November 17, 2015 Staff Recommendation.) 4. The rates and charges Staff recommended provide a surplus that exceeds the five-year average of net plant additions of $33,390. (Id. at Statement F, Exhibit 1.) 5. Malden PSD meets the reserve requirements of W.Va. Code (k). (November 17,20 15 Staff Report.) 6. The rates Staff recommended will allow Malden PSD to meet its bond obligations. (Id. at Exhibit 1.) 7. Malden PSD provided its customers with notice of this matter as prescribed by Tariff && 23. (September 16,2015 Filings.) 8. Malden PSD has no objection to the Staff recommendations contained in the November 17,2015 StaffReport. (December 1,2015 Letter.) 9. The Commission received five protests to the rates Malden PSD initially requested. CONCLUSIONS OF LAW 1. The rates and charges reflected in Appendix A to this Order are (i) just and reasonable and (ii) allow Malden PSD meet its debt service coverage obligations. (W.Va. Code a(c), Tariff Rule 20.) 2. The Commission has not received substantial protest in this matter to justify further hearing regarding the disposition recommended by all parties. 3. Malden PSD will file an original and six copies of a tariff reflecting the rates and charges approved in Appendix A of this Recommended Decision. The tariff sheets should also reflect that the charges were approved by this Recommended Decision. (Tariff Rules 1 and 2 1.) ORDER IT IS THEREFORE ORDERED that the rates and charges within Appendix A to this Recommended Decision are approved for use by Malden PSD for all sanitary sewer service rendered on or after the effective date of this Recommended Decision. hbhc Service Commission of West V qma 4

5 IT IS FURTHER ORDERED that within thirty days of the effective date of this Order, Malden PSD shall file an original and six copies of revised tariff sheets reflecting the sanitary sewer rates approved by this Recommended Decision. IT IS FURTHER ORDERED that on the effective date of this Recommended Decision, this matter is removed from the active docket of Commission cases. 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 written 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. If no exceptions are filed, this Order shall become the Order of the Commission, without hrther action or order, five days following the expiration of the fifteen day time period, unless it is ordered stayed by the Commission. Any party may request waiver of the right to file exceptions by filing an appropriate petition in writing with the Executive Secretary. No such waiver, however, will be effective until approved by order of the Commission. MJM:s:lc ac.docx Matthew J. Minn P y Deputy Chief Administra ve Law Judge Publtc Semce Comnussion of West Vxgma 5

6 APPENDIX A Page 1 of 5 MALDEN PUBLIC SERVICE DISTRICT CASE NO PSD-42T APPROVED TARIFF SCHEDULE I APPLICABILITY Applicable within the entire territory served. AVAILABILITY OF SERVICE Available for metered general domestic, commercial and industrial (except unusual industrial waste) and resale sewer service. RATES (customers with metered water supply) First 2,000 gallons used per month $10.07 per 1,000 gallons All over 2,000 gallons used per month $10.07 per 1,000 gallons MINIMUM CHARGE No bill will be rendered for less than $20.14 per month. FLAT RATE CHARGE (Customers with non-metered water supply) Equivalent of 4,500 gallons of water usage, $45.32 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. WATER DISCONNECT-RECONNECT FEES Whenever water service has been disconnected for non-payment of sewer bills in conjunction with a water service termination agreement with West Virginia-American Water Company, a disconnection fee of $25.00 shall be charged. Whenever water service, which has been previously disconnected or otherwise withheld for non-payment of a sewer bill in conjunction with a water service termination agreement with West Virginia-American Water Company, is reconnected, a reconnection fee of $25.00 shall be charged. Fubhc Service Comrmssion of West Vuguua

7 APPENDIX A Page 2 of 5 SCHEDULE I (Continued) 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 pre-construction tap fee will be invalid after the completion of construction adjacent to the 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. 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. LEAK ADJUSTMENT $1.33 per 1,000 gallons 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 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. Pubbc Service Commission of West Vugma

8 APPENDIX A Page 3 of 5 SCHEDULE 2 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 water from unusual users, in gallons per year Bo = average unit cost of treatment, chargeable to Biochemical Oxygen Demand (BOD), in dollars per pound Bi = 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 from unusual users, in pounds per year When an unusual user is to be served, a preliminary study of its wastes, and the cost ol transport and treatment thereof, will be made. Waste containing materials which, in the judgmeni of the Malden 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 feasibility of the proposed sewer service and the charge therefore, based upon the formula set out above. Thereafter, unusual sewage will be monitored on a regular basis and at the conclusion oj each fiscal year, based on the investigation aforesaid and audit of the Malden Public Service District records, new cost figures will be calculated for use in the above formula. The cost ol establishing the monitoring facilities shall be paid by the unusual user. Based on these auditec figures, additional billings covering the past fiscal year will be made for payment by each unusua user, or refund given by the Malden Public Service District, as the case may be. Such auditec figures will then be used for the preliminary billing for the next fiscal year, at the end of which ar adjustment will be made as aforesaid. Pubhc Service Commtsslon of West Vuguua

9 APPENDIX A Page 4 of 5 SCHEDULE 3 SURCHARGE FOR ROOF DRAINS CONNECTED TO THE MALDEN PUBLIC SERVICE DISTRICT SANITARY SEWERAGE SYSTEM 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 utility in accordance with the Rules 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 xr 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., = A conversion factor to change inches of rain x square feet of surface water to thousands of gallons of water. C = The utility s approved rate per thousand gallons of metered water usage. The utility shall not impose the surcharge unless and until the customer has been 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 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 exist. Failure to pay the surcharge andor 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. Pubhc Service Comrmsszon of West Vugmia

10 APPENDIX A Page 5 of 5 SCHEDULE 4 APPLICABLE INSIDE AND OUTSIDE OF THE LIIMITS OF THE MALDEN PUBLIC SERVICE DISTRICT When the amount of sanitary sewage discharged into the Malden wastewater treatment system andor transmission and/or treatment system by certain industrial 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 formula will be used whereby such plant or plants will pay the Malden Public Service District a sewer charge calculated at fifty (50) gallons of water per each employee at the plant each working each day. APPLICABILITY Applicable in the entire territory served. SCHEDULE 5 AVAILABILITY Available for wastewater and leachate haulers. RATES Commoditv Charae - 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 delivering wastewater and leachate. Actual capacity shall be determined or verified by the District. DELAYED PAYMENT PENALTY The above tariff 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. 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. Pubbc Service Commission of West Vuguua