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. CASE NO. 17-0787-W-DSIC WEST VIRGINIA-AMERICAN WATER COMPANY Petition for approval of the 2018 Infrastructure Replacement Program surcharge mechanism. NOTICE OF DSIC FILING & HEARING On June 15, 2017, West Virginia-American Water Company (WVAWC) filed an application for approval of a Distribution System Improvement Plan and Charge (Application) pursuant to the direction of the Public Service Commission of West Virginia (Commission) in its February 24, 2016 Order that resolved WVAWC's 2015 rate application, Case Nos. 15-0675-S-42T and 15-00676-W-42T. WVAWC proposes to implement a Distribution System Improvement Charge (DSIC), under which it would invest approximately $29.9 million for infrastructure replacement and system upgrades in 2018 throughout WVAWC's entire 19-county service area. The DSIC primarily would cover the replacement of transmission and distribution mains, valves, hydrants, and service lines, but in the future is proposed to apply to other categories of utility plant replacements, improvements and extensions of service. The $29.9 million in proposed 2018 DSIC investment includes $5 million for 2018 costs associated with a new interconnection from WVAWC's Weston Treatment Plant to its Webster Springs service territory. WVAWC intends to seek recovery of additional costs associated with this project in future DSIC filings. The projects proposed for 2018 are identified in the Application, which is on file and available for public inspection at the Commission's offices at 201 Brooks Street, in Charleston, West Virginia, and may be viewed on the Commission's website, www.psc.state.wv.us. WVAWC proposes to recover costs associated with these investments through a separate rate component on customer bills, calculated as a percentage of the total monthly bill for service (comprised of both the minimum meter charge and the volumetric rate component). WVAWC projects that if the program and rate component are approved as requested, the average monthly bill for its various classes of customers will be changed on January I, 2018, as follows: Residential $ Increase $1.56 % Increase 3.28% Average Usage 3,204 gallons per month Commercial $ Increase $8.06 % Increase 3.28% Average Usage 16,702 gallons per month Industrial $ Increase $164.89 % Increase 3.28% Average Usage 605,167 gallons per month Sale for Resale $ Increase $375.02 % Increase 3.28% Average Usage 1,601.287 gallons per month 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. Each class may receive an increase greater or less than stated here. The requested rates and charges are only a proposal and are subject to change (increases or decreases) by the Public Service Commission in its review of this filing. WVAWC filed a separate certificate application for the proposed interconnection project, which has been assigned Case No. 17-0466-W-CN. WVAWC did not propose to increase rates related to the interconnection project in the certificate case, but instead requested cost recovery related to the interconnection project through the DSIC rate that will be established in Case No. 17-0787-W-DSIC. The Commission set a procedural schedule, including a hearing date to receive evidence on both the Certificate Application and the DSIC Application for October 11, 2017, and continuing daily thereafter on October 12 and October 13, 2017, if necessary. The hearing will begin at 9:30 a.m. October 11, 2017, in the Howard M. Cunningham Hearing Room at the Commission's offices at 201 Brooks Street, Charleston, West Virginia. Anyone desiring to protest or intervene in Case No. 17-0787-W-DSIC should file a written protest or request to intervene that briefly states 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 and must be filed within 30 days following the date of this publication unless otherwise modified by Commission Order. The Commission also will receive public comments at the beginning of the hearing. All written protests or requests to intervene should state the case name and number and be addressed to Ingrid Ferrell, Executive Secretary, P.O. Box 812, Charleston, West Virginia 25323. Public comments may also be filed online at http://www./osc/state/wv/us/scripts/onlinecomments/default.cfm by clicking on the "Formal Case" link. WEST VIRGINIA-AMERICAN WATER COMPANY LH-55065 8-23-17
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