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WELLSBURG -- The West Virginia Public Service Commission has offered mediation concerning a fee dispute over sanitary fees involving a local community.
According to information provided by the PSC, the Brooke County Public Service District filed a formal complaint against the City of Wellsburg on July 28 concerning a sanitary rate increase adopted by the city in December 2024. The increase included the city's resale rate and was implemented through a three-step process over a 14-month period.
The PSD is a customer of the city, transmitting its wastewater collections to the Wellsburg sanitary treatment facility.
"The Complaint alleges the City failed to properly notify the District of the sewer resale rate increase in violation of W.Va. Code 8-11-4(a)(2) and 16-13-16(g); and Rule 23 of the Commission’s Rules for the Construction and Filing of Tariffs," notes information from the PSC.
Brooke County PSD officials have requested that the sewer ordinance be invalidated, with the city then ordered to issue a credit for "all charges under the Sewer Ordinance, and direct the City to immediately cease charging the increased rates in the Sewer Ordinance."
According to the PSC, Wellsburg officials filed a response on Aug. 7.
"The Answer contains general admissions and denials but provides no specific responses to the allegations in the Complaint, detail of billings and payments under the wholesale rate, or the basis for the increased rates adopted in the December 2024 ordinance."
A notice of mediation was filed Aug. 11. In a follow-up letter issued by the PSC Monday, the mediation was scheduled for 11 a.m. Sept. 11, through a teleconference.
Under state code, "any complaint filed with the commission by a resale or wholesale customer of a municipally owned water and/or sewer utility having less than 4,500 customers or annual combined gross revenue of less than $3 million concerning rates, fees, or charges applicable to such resale or wholesale customer shall be filed within 30 days of the enactment by the governing body of the political subdivision of an ordinance changing rates, fees, or charges for such service."
The commission then has 120 days from the filing to resolve the complaint, unless a decision to "toll" the deadline is made.
"The Commission finds that it does not have the necessary information to resolve the issues presented by the Complaint. Specifically, the City failed to provide any details regarding the basis for its wholesale rates, the notice provided to the District, or the amounts billed to the District and paid by the District since the effective date of the rates approved in the 2024 ordinance."
"At this time, additional information is required from Wellsburg. Wellsburg should file information regarding the notice provided to the District regarding the ordinance procedure and the rates that would apply to the District. Wellsburg must also file the records showing the monthly amounts billed to the District, including volumes billed, amounts billed and payments by the District, including payment dates. Wellsburg must also file the financial support showing the basis for the wholesale rates approved in the 2024 Ordinance. The rate justification can include a class cost of service study for wholesale service, or a history of functional cost increases since the prior rate changes and an evaluation of the relative prior and current pro rata responsibilities of the wholesale class to functional cost categories to demonstrate that the relationship between the 2024 Ordinance wholesale rates and rates to other customers can be presumed to be relatively cost-justified."
The city must provide the information within 30 days of the conclusion of mediation if the mediation is unsuccessful.
The PSD also has been asked to "brief the legal and factual basis for the requested relief, including the basis upon which the Commission may set aside, invalidate, or otherwise decline to enforce the municipal rate ordinance adopted December 20, 2024, and order reimbursement of amounts paid pursuant to that ordinance beginning in January 2025."