Small sewer district rate increase OK’d

June 11, 2014

MARTINSBURG - County sewer customers will see a small change in their upcoming bills following the West Virginia Public Service Commission's recent approval of an emergency rate increase for the Berkeley County Public Service Sewer District.

This increase is separate from the increase request the sewer district filed to finance the Chesapeake Bay upgrades. The increase will impact provide an influx to the district's revenue and is estimated to produce $729,286 annually in additional operating revenue.

"We tried to hold off the operations increases as long as we could. We made cuts where we could; we cut staff in order to make ends meet. We hoped to make it until the project began, but the delays just pushed things out too far," said Curtis Keller, executive director for the sewer district.

Under the 5.8 percent increase, the volumetric charge will increase $0.94 to $9.02; the service charge will increase $0.51 to $9.37; and the flat rate charge will increase $2.71 to $49.96.

For former customers of Sylvan Grove Treatment Inc., volumetric charges for the first 3,000 gallons per month will increase $0.52 to $9.56; the next 7,000 gallons per month will increase $0.46 to $8.34; and all over 10,000 gallons per month will increase $0.33 to $6.07. The minimum charge will increase $1.56 to $28.68.

"The District states the delay in project funding has depleted the District's cash on hand to worrisome levels. Further, the District's negative cash flow has significantly reduced the District's bond coverage, and it is now questionable whether the District will meet its required bond coverage for the current fiscal year," the order reads.

The district must meet a bond coverage requirement of 115 percent to maintain good standing to obtain the certificate for the upgrade project and maintain low borrowing costs. With the interim rate increase, the sewer district will receive a surplus of $513,526 that will equal a bond coverage of 115.03 percent.

Keller said customers' bills will reflect the rate increase in either July or August.

Although the PSC believes the 5.8 percent rate is sufficient for the district to meet its bond coverage, Keller believes the increase does not provide a wide enough margin for emergencies or circumstance.

"We're looking at it right now. (The PSC) gives you so slim of a margin to operate on to meet that 115 percent. If nothing else comes up unexpectedly, we could probably work with that. However, if we have any equipment breakdown or costs continue to go up, that could be a problem," Keller said, adding that the last rate increase was 2009.

While receiving a 5.8 percent operations rate increase, the sewer district actually requested up to an 11 percent increase.

If the PSC approves the district's project-related rate increase, than that increase will include the operations increase.

Customers will receive a letter describing the increase and new rates with their June bill. To reflect the operations rate increase, the PSC assigned a new case number for the sewer district - 13-1836-PSD-42A-CN. All protests filed under the original case number will remain valid.