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West Virginia American Water files application on infrastructure, improvement charge By
June 30, 2021 - 10:55 pm
CHARLESTON, W.Va. West Virginia American Water Company on Wednesday filed an application with the Public Service Commission of West Virginia seeking the approval of its 2022 infrastructure replacement plan and an associated distribution system improvement charge.
The plan includes around $32.5 million of investment in infrastructure replacement and system upgrades.
The distribution system improvement charge is related to infrastructure investments approved for March 2019 through February 2022, in which the overall surcharge on customer bills will go from 6.60% to 1.87% of the proposed water rates. The average customer will see monthly bills increase by $2.34 starting next March if the commission approves the proposal.
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Residents in President Biden’s home state of Delaware – which he represented in the Senate for more than three decades – saw a $15 decrease in their utility bills in 2018, replacing the anticipated $65 increase.
The reason was the Tax Cut and Jobs Act, according to the Delaware Public Service Commission, in announcing the rate cut from Delmarva. The tax reform package that President Trump signed in late 2017, among other things, slashed the corporate tax rate from 35% to 21%.
Delaware is one of 38 states to pass along the corporate tax rate cut to customers, according to data compiled by Americans for Tax Reform. That includes the current president’s birth state, where the Pennsylvania Public Utility Commission announced in 2018 a monthly credit to customer bills for 17 electric, natural gas, and water and wastewater utilities, totaling more than $320 million.
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West Virginia-American Water Company is seeking a rate increase for water service for about 167,000 customers in 19 counties, including Fayette, Mercer, Raleigh and Summers.
According to a press release from Jackson Kelly PLLC, the increase will directly or indirectly affect customers of public service districts, regional development authorities, municipalities or other governmental subdivisions that, upon approval of the state Public Service Commission, are charged water rates in whole or part based on WVAW s rates. Those include Lashmeet PSD, Jumping Branch/Nimitz PSD, New Haven PSD and Oakvale Road PSD.
Proposed increased rates will go into effect on Feb. 25, 2022, if approved by the PSC.