CHARLESTON -- The West Virginia Public Service Commission has recommended a request for $5 million be awarded to assist the Hancock County Public Service District in its planned acquisition of the Newell Company's wastewater services.
As part of its session Monday, the PSC recommended the West Virginia Infrastructure and Jobs Development Council award the $5 million requested by the Hancock County PSD, using funds from its Distressed Utilities Account, as well as for the PSD and Newell Company to prepare all closing documents and complete the acquisition within 30 days of receiving the funds.
The order follows more than three years of requests and hearings, which began in December 2020 when The Newell Company, which had been owned and operated by the Fiesta Tableware Co., asked to be declared a distressed or failing utility. The PSC made its declaration in 2022, with an order issued in February 2023 for the Hancock County PSD to take over wastewater operations and the Tomlinson PSD to take over water operations.
According to a copy of the order, issued Monday by the WVPSC, the Hancock PSD "diligently pursued funding to pay the acquisition price of $1,361.079 and to acquire funding in the amount of $9,146,879 to make necessary repairs to the Newell wastewater system," also citing an October 2023 engineering review which "determined that 99% of Newell's wastewater lines would have to be repaired." increasing the total cost for the Hancock PSD from $10,507,958 to $15,499,089.
Hancock PSD officials requested additional funds from the WVIJDC, with the request tabled during an October IJDC meeting and later denied.
In issuing its order, the PSC stated, "It has been over a year since the Commission directed Hancock PSD to pursue the grant funding for the acquisition of Newell's wastewater system. The Commission understands that applying for an obtaining grant funding, especially in the amount needed by Hancock PSD to acquire the system and make repairs, takes time. However, the Commission found that Newell was a failing utility nearly two years ago and we have concerns about the quality and reliability of services Newell's wastewater customers are currently receiving."
The Newell Company has provided sewer services for 425 customers in the county.
In addition to the $5 million from the Distressed Utilities fund, the Hancock PSD has applied for, or received, a series of grants and loans through the IJDC, the Clean Water State Revolving Fund, the U.S. Department of Agriculture, the state Water Development Authority, and local grants.