PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON CASE NO. 17-0466-W-CN WEST VIRGINIA-AMERICAN WATER COMPANY Lewis County, West Virginia Application for a certificate of convenience and necessity to construct certain additions and improvements to its Weston and Webster Springs systems in Lewis and Webster Counties, West Virginia. NOTICE OF FILING On April 14, 2017, West Virginia-American Water Company (WVAWC) filed a duly verified application for a certificate of convenience and necessity to construct certain additions and improvements to its Weston and Webster Springs systems in Lewis and Webster Counties. WVAWC plans to construct certain facilities that will allow it to (1) decommission its antiquated Webster Springs Plant by connecting the customers that it currently serves to the Weston Plant and (2) make necessary upgrades to expand its Weston Plant. WVAWC seeks certificates for both components of the project in its application. WVAWC asserts that the project is a better approach than constructing a new treatment plant in Webster Springs, in part because the Weston plant upgrades would still need to be made under that scenario. The application is on file with and available for public inspection at the Public Service Commission, 201 Brooks Street, in Charleston, West Virginia. The estimated cost of the Project is $20.8 million to be expended during a four-year period: $6.1 million for the Weston plant upgrades and $14.7 million for the facilities to interconnect the two systems. WVAWC does not propose a change in base rates upon completion of the project and, instead, is requesting an alternative phase-in cost recovery mechanism in Case Number 17-0787-W-DSIC that was filed for Commission approval of a Distribution System Improvement Charge (DSIC). The project is estimated to take four years to construct. When the project is complete, based on the WVAWC estimates and proposed cost recovery phase-in method, it is expected that the aggregate total project-related revenue requirement will be $3,017,000, or an increase of approximately 2.05%. The total increase granted will not exceed this estimate unless further notice is provided. The estimated additional revenue requirement by customer class will be as shown below. The following project-related increases are expected to be fully reflected in rates after substantial completion of the project based on the phase-in cost recovery mechanism requested by WVAWC unless otherwise ordered: Monthly Residential ($) INCREASE $ 0.97 (%) INCREASE 2.05% Commercial ($) INCREASE $ 5.04 (%) INCREASE 2.05% Industrial ($) INCREASE $103.06 (%) INCREASE 2.05% Resale ($) INCREASE $234.39 (%) INCREASE 2.05% Other Public Authority ($) INCREASE $12.83 (%) INCREASE 2.05% Resale customers of WVAWC include Flatwoods Canoe Run PSD, Bluefield Valley Water Company, Queen Shoals PSD and South Putnam PSD. The increases shown are based on averages of all customers in the indicated class. Individual customers may receive increases that are greater or less than average. Furthermore, the requested rates and charges among the various classes of customers are only a proposal and are subject to change (increases or decreases) by the Public Service Commission in its review of this filing. In a certificate proceeding, the Commission approves rates that go into effect upon substantial completion of the project or otherwise recovered as ordered by the Commission. In this case, WVAWC asked the Commission to approve a different form of rate recovery, whereby customers will be required to pay for this project through a Distribution System Improvement Charge (DSIC) that is developed in a separate proceeding. Further, the DSIC is subject to annual adjustments. The Commission will determine in this proceeding whether to allow the alternative rate approach that WVAWC proposed. Anyone desiring to protest or intervene 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, including any associated rate increases, or to 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's 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 25323. In the absence of substantial protest received within thirty (30) days of this publication, the Commission may waive formal hearing and grant the application based on the Commission's review of the evidence submitted with the application. #54486 8-2; 2017
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