Phone: (304)340-0300
Fax: (304)340-0325
201 Brooks Street, P.O. Box 812
Charleston,West Virginia 25323
March 29,20 16
Ingrid Ferrell, Executive Secretary
Public Service Commission
Post Office Box 812
Charleston, West Virginia 25323
Re:
Case No. 14-1696-PWD-CN
Clay Battelle Public Service District
Dear Ms. Ferrell:
Enclosed for filing are the original and twelve (12) copies of the Petition to
Reopen in the above-referenced proceeding.
A copy has been served upon all parties of record.
L
CHRISTOPHER L. HOWARD
Staff Attorney
CLH/cs
Enclosures
David C. Glover, Counsel of Record Clay Battelle PSD
cc:
Linda Chisler, Manager, Clay Battelle PSD
H:\choward\word\l4- 1696-PWD-CN (Clay Battelle Public Service District)iPetitioii to Reopen.doc
PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 14-1696-PWD-CN
CLAY BATTELLE PUBLIC SERVICE DISTRICT
PETITION TO REOPEN
Comes now Commission Staff by Christopher L. Howard, counsel, and
PETITIONS the Commission to reopen this case to order Clay Battelle Public Service
District (the “District”) to cease charging project rates until such time as the District has
certified Contracts 1-4 are complete. In support of its Petition, Staff states as follows:
By Recommended Decision entered January 27, 2015, final as of April 21, 2015,
the District was granted a certificate of convenience and necessity to construct an
extension of its water distribution system.
The construction was to be completed in four separate contracts, with Contract 1
being new water mains, distribution and water pumping system improvements, Contract
2 being the cleaning and repainting of three existing storage tanks; Contract 3 being the
construction of a new office and shop building and Contract 4 being the construction of a
new water and storage tank.
Staff recommended a rate increase of 35.65% to cover the debt service for the
project, which rates were to become effective upon completion of the project (“project
rates”).
The Recommended Decision stated:
IT IS FURTHER ORDERED that the attached rates (Appendix A),
he, and hereby are, approved to become effective for, all service rendered
by Clay Battelle on and after the date that the project is certified as
substantially complete.
On February 29, 2016, the District filed a Certificate of Substantial Completion for
Contracts 2, 3 & 4 only.
On March 18, 2016, the District filed a tariff effective for all service rendered on
or after February 17,2016, implementing the project rates (the 35.65% rate increase.)
The project was not complete at the time the District implemented the project
rates. The work to be done under Contract 1 was not complete. Contract 1 remains
incomplete as of the date of this filing.
While reviewing the proper rates for purchased water costs from Morgantown
Utility Board in Commission Case No. 16-0216-PWD-30B, the Staff discovered that the
District had already implemented the certificate rates. Attached is the Utilities Division
Further Final Memorandum, prepared by Karen L. Buckley, Utilities Analyst 11, dated
March 25, 2016. Ms. Buckley notes the project was not complete at the time the District
implemented the project rates since Contract 1 was not finished. Thus, the project is not
substantially complete.
2
Per the Recommended Decision, the District should not be charging the project
rates until all four contracts are substantially completed.
WHEREFORE, Staff PETITIONS the Commission to reopen this case and enter
an order requiring the District to:
1.
Cease charging the project rates immediately.
2.
File a new tariff with the rates in effect prior to the implementation of the
project rates and begin charging its customers these rates (“old rates”).
3.
Any other relief deemed appropriate by the Commission.
Respectfully submitted this the 29‘h day of March 2016.
STAFF OF THE PUBLIC SERVICE
COMMISSION OF WEST VIRGINIA
By Counsel,
u-4
CHRISTOPHER L .‘HOWARD
WV State Bar 1.D. No. 8688
3
PUBLIC SERVICE COMMISSION OF WEST VIRGINIA
UTILITIES DIVISION FURTHER FINAL MEMORANDUM
FROM:
Karen L. Buckley, Utilities Analyst I1
Utilities Division
DATE:
March 25, 2016
\a
SUBJECT: Case No. 14-1696-PWD-CN (Petition to Reopen)
Clay Battelle Public Service District
Application for a Certificate of Convenience and Necessity
for a water system improvements project in the western
area of Monongalia County, West Virginia
By Recommended Decision dated January 27,2015, and the Commission
final order dated April 21, 2015, Clay Battelle Public Service District (District)
was granted a certificate of convenience and necessity to construct an extension of
its existing water distribution system (the project). The construction was to be
completed in four (4) separate contracts. Contract 1 being new water mains,
distribution and pumping system improvements; Contract 2 being the cleaning and
repainting of three existing water storage tanks: Contract 3 being the construction
of a new office and shop building and Contract 4 being the construction of a new
water storage tank. The District was also ordered to file with the Commission the
certified bid tabulations for each contract awarded. Increased rates were ordered
by the Commission to become effective upon substantial completion of the
project.
On February 29, 2016, the District filed a Certificate of Substantial
Cotnpletion for Contracts 2, 3 and 4. On March 18, 2016, the District filed a tariff
effective for all service rendered on and after February 17,2016, implementing the
approved project rates. The Staff engineer assigned to this proceeding recently
spoke with the project engineer who stated the District has not completed Contract
No. 1. The project was not complete at the time the District implemented the
project rates since Contract 1 was not finished. Thus, the project is not
substantially complete.
On February 22,2016, the District filed Case No. 16-0216-PWD-30B to
pass through increased costs of purchased water from the Morgantown Utility
Board. On March 22, 2016, Staff filed a Further Joint Staff Memorandum
recommending both the current rates and the pending certificate rates in Case No.
14-1696-PWD-CNbe adjusted for the additional purchased water cost.
Clay Battelle Public Service District
Case No. 14-1696-PWD-CN
March 25,2016
Page 2
Attached as Exhibit 1 is an email I received on March 22,2016 from the
District’s accountant, Bennett and Dobbins, LLC, questioning Staffs
recommended rates in Case No. 16-0216-PWD-3OBsince the District had already
implemented new project rates (Tariff No. 19).
Per the Commission’s order in the CN case, the District should not be
charging the project rates until all four (4) contracts are substantially complete.
The Utilities Division recommends the Commission reopen this case and issue an
order requiring the District to cease charging the project rates immediately. The
Utilities Division also recommends the Commission issue an order requiring the
District to file a new tariff with the rates in effect prior to the implementation of
the project rates.
Bucklev. Karen
From:
Sent:
To:
cc:
Subject:
Zack Dobbins [[email protected]]
Tuesday, March 22,2016 7:22 AM
Buckley, Karen
Phil Nuce; 'Clay Battelle PSD'
clay battelle psd 16-0216
Karen
The tariff you all used as current is an old tariff 18, they now have tariff number 19 in place, can you update the case or do we need to send in a letter?
Thanks
Zachary D. Dobbins, CPA
Bennett and Dobbins, PLLC
317 Cleveland Avenue
Fairmont, West Virginia 26554-1604
Telephone: (304) 366-4295 ext. 22
Fax: (304)366-4311
[email protected]
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1
PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 14-1696-PWD-CN
CLAY BATTELLE PUBLIC SERVICE DISTRICT
CERTIFICATE OF SERVICE
I, Christopher L. Howard, Staff Counsel for the Public Service Commission of
West Virginia, hereby certify that I have served a copy of the foregoing Petition to
Reopen upon all parties of record by First Class United States Mail, postage prepaid this
the 29'h day of March 2016, addressed as follows:
David C. Glover, Esq.
Counsel, Clay Battelle PSD
Smith, McMunn & Glover, PLLC
516 West Main Street
Clarksburg, WV 26301
Linda Chisler, Manger
CalyBattell Public Service District
P.O. Box 4678
Morgantown, WV 26504-4674
CHRISTOPHER L. HOWARD
West Virginia State Bar I.D. No. 2793