Although Ridgeview News is no longer privy to County or City information except through their porch news, it appears the meeting date was changed from the regularly scheduled first Monday of the month to Wednesday, May 8th, 2024.
Several items of interest are up for discussion including the 1% sales tax addition for the city, WV American Water’s visit with the Mayor, the consolidation and the City’s rate increase request.
While the first three topics in that paragraph will have to wait for a Wednesday update, it appears there was some news received regarding the rate increase.
A letter received by the Concerned Citizens who filed the complaint had the following to say regarding the Town’s request:
Comes now the *Staff of the West Virginia Public Service Commission and for this Reply states as follows:
On April 5, 2024, the Commission entered an order explaining that it needed additional information from Grantsville to evaluate the cases.
Accordingly, the Commission ordered Grantsville to file the information:
(1) Evidence demonstrating that the increase to the wholesale
customer(s) is consistent with the current relative costs reasonably allocable to the wholesale class, or, alternatively,
(2) A class cost of service study demonstrating the rate required to cover the costs reasonably allocable to the wholesale class;
(3) An explanation of the proposed $30,000 per year built into rates to pay the town general fund, including the total amount Grantsville owes the town general fund, documentation of the circumstances giving rise to the amounts, such as formal action, minutes, or notifications of funding provided by the town general fund; and
(4) Grantsville’s backup support of the proforma adjustment to build $50,000 per year into rates for capital improvements including an historical average of capital additions.
On April 19, 2024, Grantsville filed a response to the Commission’s order, purportedly providing the required information. *Staff found that Grantsville’s response was insufficient, and Grantsville was ordered to make any objections it had to *Staff’s finding by May 1, 2024.
On May 1, 2024, Grantsville filed an objection in which it provided additional information, requested that the statutory suspension period be restarted, and argued that *Staff conducted an in-person audit to obtain the information it needs to review the Town’s rate increase.
*Staff disagrees.
Reply and Recommendation
Although petitioning utilities bears the burden of proof to support requested rate increases, Grantsville appears to suggest that *Staff audit its books to discern some evidence in support of an increase to the wholesale class. The Town was ordered to provide the information to the Commission – not to have *Staff conduct an audit, ascertain whether such information exists, and, if so, gather it and present it to the Commission on the Town’s behalf.
Further, not only did Grantsville fail to provide any evidence to support an increase of the current wholesale rate, it actually admitted that it has no such evidence (Grantsville Response to Memo Regarding Tolling of Timelines, Paragraph 8). Grantsville contends that the evidence required by the Commission does not exist because the rate increase was applied equally across all customer classes. Applying a rate increase equally across all classes does not relieve a
utility of its burden to support the allocation. Because the Town is unable to support its allocation, Staff suggests that Grantsville withdraw the current ordinance.
In a nutshell, the WV PSC Staff just told the Town of Grantsville, “No,” to their rate increase and if you could read between the lines, you can almost feel the frustration of the PSC staff, which not only didn’t get the response they desired from the Town, but the Town asked them to come and see if they could find a reason for the increase, because the Town couldn’t find it.
While the consolidation meetings seem to be moving forward with a positive outlook, the Town of Grantsville’s rate increase request/denial may spark further debate on how these systems will work to fix what ails them. Tune in Wednesday for the next installment of “As the World Turns” in Grantsville.
