The Register-Herald, Beckley, West Virginia

Local News

September 3, 2008

Hearing scheduled on Beckley Water Co.’s proposed 20% rate hike

By Fred Pace

A Sept. 10 hearing has been scheduled regarding a proposed 20 percent increase in water rates filed by Beckley Water Co. with the state Public Service Commission.

Beckley Water President Jack Vickers said in March that inflationary factors are the driving force behind the proposed increase.

“The cost of fuel, chemicals and other supplies have skyrocketed over the past few years,” Vickers said then.

Douglas Ramsden, the water company’s vice president and treasurer, said increases in insurance costs are also a factor in the rate increase request.

“Both the company’s health and commercial insurance costs have increased significantly,” Ramsden said. “Most utility companies are in the same situation and have applied and received relief, or are in the process of preparing applications for relief.”

Beckley Water is seeking an overall increase of 20.42 percent. However, the residential increase would amount to approximately 21.29 percent, according to the filing. That would increase the average residential bill by $5.65 a month.

Rates for resale customers varies based on usage, according to the filing.

The water company wanted the increase to be effective April 21, but instead the PSC suspended rates and charges and referred the matter to the state Division of Administrative Law Judges.

“Deputy Chief Administrative Law Judge Ronnie Z. McCann will convene a hearing in this matter in the Circuit Court, Room B, Second Floor, Raleigh County Courthouse, 215 Main Street, Beckley, West Virginia, on Wednesday, Sept. 10, at 10 a.m.,” the legal advertisement announcing the hearing stated.

On March 28, West Virginia American Water Co. was granted a 14.9 percent increase. That action increased the company’s average residential customer bill, approximately 3,800 gallons a month, from $34.90 to $40.12.

Beckley Water proposed increased rates and charges would produce approximately $1,976,986 annually in additional revenue, according to the filing.

Strict, new U.S. Environmental Protection Agency regulations and requirements have also placed a hardship on water utility companies nationwide, Vickers added.

“Meeting these new requirements has proved to be very costly,” he said. “It’s not like a new water line extension in which the company picks up new revenue with new customers to pay for the expenditure. These are non-revenue bearing expenditures.”

A complete copy of the public notice of change in rates is available at the water company office at 119 S. Heber St. in Beckley.

— E-mail: fpace@register-herald.com

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