An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
West Virginia American Water Receives Approval of 2022 Distribution System Improvement Charge
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary
West Virginia American Water has received approval for its 2022 infrastructure replacement program, known as the Distribution System Improvement Charge (DSIC), from the Public Service Commission of West Virginia. The approved surcharge facilitates timely cost recovery for infrastructure investments totaling $32.5 million, including upgrades to over 30 miles of water mains and service lines. Customers will see a reduced surcharge of 1.62%, averaging about $1.01 per month. This is a decrease from the prior year's average surcharge of $3.55, improving financial relief for customers while enhancing water service reliability.
Positive
Approval of $32.5 million for infrastructure upgrades.
Reduction of average surcharge from $3.55 to $1.01 benefiting customers.
Accelerated infrastructure replacement timeline from 400 to 100 years since 2017.
Negative
Average residential water customer will see a $4.90 increase in base rates effective February 25.
CHARLESTON, W.Va.--(BUSINESS WIRE)--
In an order entered on February 28, the Public Service Commission of West Virginia (PSC) granted approval for West Virginia American Water’s 2022 infrastructure replacement program, referred to as a Distribution System Improvement Charge (DSIC). The program and its associated surcharge mechanism allow the company to receive more timely cost recovery of certain infrastructure investments deemed just, reasonable, and in the public interest, which in turn enables the company to accelerate its infrastructure replacement and reliability program.
“The DSIC surcharge plays a critical role in our company’s ability to address aging infrastructure by directing additional investment to areas where improvements are most needed,” said Robert Burton, president of West Virginia American Water. “Since incorporating this minimal surcharge in 2017, we’ve significantly reduced our water main replacement rate from 400 to 100 years, and we’ve invested over $171 million to replace distribution system assets at an incredibly accelerated rate. This type of investment has a direct impact on quality of life for West Virginians and the future economic development of our great state.”
The approved DSIC, effective today, includes $32.5 million in system-wide upgrades that West Virginia American Water will make in 2022. The improvements include $18.6 million to replace or upgrade more than 30 miles of water mains; $9.2 million to replace service lines, fire hydrants, meters, and booster stations; $2.5 million to rehabilitate water storage tanks, and $2.2 million for post-acquisition investment in troubled water systems.
Accordingly, customers will pay a 1.62 percent surcharge on their monthly bills, or approximately $1.01 for the average residential customer using 3,100 gallons per month, to help fund these projects. The 2022 surcharge is a reduction on customer bills from the 2021 average residential DSIC surcharge which was about $3.55 per month. Most customers will see a prorated amount on their next bill, depending on their meter reading and billing schedule.
The program includes multiple consumer protections, such as annual reconciliations, annual and cumulative caps and earnings limits. The surcharge is calculated each year based on capital investments made annually between rate cases until rolled into the company’s rates in a future rate case. Additionally, DSIC surcharges cover investments that are not covered in customer’s base rates.
The company’s DSIC approval follows a separate PSC order issued last week in which new base rates were set for West Virginia American Water customers. Under the new rate order, the average residential water customer using 3,100 gallons will see a monthly increase of approximately $4.90 while the company’s average wastewater customer in Fayette County using 3,000 gallons will see a monthly increase of approximately $8.49. The company’s new base rates were effective on February 25.
West Virginia American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to approximately 560,000 people. With a history dating back to 1886, American Water (NYSE:AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.
What is the impact of the Distribution System Improvement Charge (DSIC) on West Virginia American Water customers?
The DSIC allows for a reduced surcharge of 1.62%, resulting in lower monthly bills, around $1.01 for the average customer, starting in 2022.
How much is being invested in infrastructure upgrades by West Virginia American Water in 2022?
A total of $32.5 million is designated for system-wide upgrades, including the replacement of over 30 miles of water mains.
When does the new DSIC surcharge take effect for West Virginia American Water customers?
The new DSIC surcharge is effective immediately following its approval on February 28, 2022.
What will be the effect of the recent base rate changes for average water customers?
The average residential water customer will experience an increase of approximately $4.90 in monthly bills due to new base rates effective February 25.
