February 16, RE: Case No W-WI Washington Pike PSD vs. City of Follansbee, WV

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1 February 16, 2018 Ms. Ingrid Ferrell, Director Executive Secretary Division Public Service Commission of West Virginia 201 Brooks Street Post Office Box 812 Charleston, West Virginia RE: Case No W-WI Washington Pike PSD vs. City of Follansbee, WV Dear Ms. Ferrell: Please find enclosed herewith an original and twelve (12) copies of the Joint Motion To Dismiss And To Open New Case For Approval of Water Sales Agreement jointly being filed this date by the City of Follansbee and the Washington Pike Public Service District in regard to the above-captioned matter. If you have any questions concerning this matter, or if you require anything further in this regard, please do not hesitate to contact my office. Thank you for your kind consideration in regard to this matter. MEG/j lw Enclosures pc: Brian Taylor, Chairman Washington Pike P lic Service District LLA EVE

2 BEFORE THE PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON WASHINGTON PIKE PUBLIC SERVICE DISTRICT, a Public Utility, vs. Complainant CASE NO. 18-0~14-W-WI -- La CITY OF FOLLANSBEE, A Municipality, Defendant JOINT MOTION TO DISMISS AND TO OPEN NEW CASE FOR APPROVAL OF WATER SALES A ~~EMENT Comes now the Defendant, City of Follansbee, West Virginia, and, as well, comes the Complainant, Washington Pike Public Service District, who jointly request the Public Service Commission of West Virginia to dismiss the herein Complaint and to open a new case for approval of a proposed Water Sales Agreement between the parties. In support of this Motion, the Complainant and Defendant offer the following grounds: That the Defendant passed a water rate Ordinance in December, 2017, which caused it s residential and commercial users to experience a 29% rate increase, from $5.3 1/1000 gallons usage to $6.84/1000 gallons usage; That the Defendant s aforesaid water rate Ordinance caused the Complainant, who is a bulk water purchaser for resale, to experience a 37% rate increase, from $ gallons purchased to $6.84/1000 gallons purchased; That the Complainant filed a Complaint herein concerning the Defendant s new water rates; That the Defendant and the complainant have reached an amicable resolution and agreement in this regard whereby the Complainant will pay the Defendant a rate of

3 $6.46 per thousand gallons of water purchased, which will cause the Complainant to experience exactly the same 29% rate increase as the Defendant s residential and commercial users. A copy of the proposed Water Sales Agreement between the Defendant and the Complainant is attached hereto, incorporated herein for reference, and marked for purposes of identification as Exhibit A ; and 5) That the parties agree that the proposed Water Sales Agreement is fair and equitable to both parties, as well as their respective users; FORE, the Defendant, City of Follansbee, and the Complainant, Washington Pike Public Service District, respectfully request: 1) That the herein case be dismissed; 2) That the Public Service Commission not require a class cost of service study in this matter or, in the alternative, allot the Defendant additional time to generate a class cost of service study; 3) That a new case be opened for the approval of the herein attached proposed Water Sales Agreement between the parties, and for such other and further relief as the Public Service Commission deems appropriate under the circumstances of this case. CITY OF FOLLANSBEE, W V Defendant WASHINGTON PIKE PSD Complainant FA State Bar ID: 1353 Telephone No: (304) Washington Pike Wellsburg, WV Telephone No: (304)

4 WATER PURCHASE AGREEMENT THIS WATER PURCHASE AGREEMENT (hereinafter Agreement ) is hyed into, 2018, by and between the CITY OF FOLLANSBEE, WEST VIRGINIA, oration and political subdivision of the State of West Virginia, located in Brooke County (hereinafter Seller ), A N D WASHINGTON PIKE PUBLIC SERVICE DISTRICT, a West Virginia public utility, located in Brooke County (hereinafter Purchaser ). WITNESSETH: WHEREAS, Purchaser is organized and established under the provisions of Chapter 16 Article 13A of the Code of West Virginia and has the authority to operate a water supply distribution system serving water users within it s duly established service area in Brooke County, West Virginia and, to accomplish this purpose, Purchaser will require a supply of treated water; and WHEREAS, Seller owns and operates a water supply distribution system with a capacity currently capable of serving the present customers of Seller s system and, as well, the number of water users being served by the Purchaser; and WHEREAS, Seller approved the sale of water to Purchaser in accordance with the provisions of the contract outlined herein, and the execution of this contract has been approved by the Water Board of Seller and the Mayor, who is authorized to sign this contract; and WHEREAS, Purchaser, by motion duly passed by it s Board of Directors, approved the purchase of the water from Seller in accordance with the terms set forth in this contract and authorized its execution by its Chairman, who is authorized to sign this contract. NOW, THEREFORE, WITNESSETH: That, for and in consideration of the premises set forth above, and the mutual covenants and agreements set forth herein-below, and other valuable consideration, the City of Follansbee and the Washington Pike Public Service District hereby contract and agree to be bound as follows: A. SELLER AGREES: 1. QUALITY AND QUANTITY. To furnish Purchaser at the point of delivery hereinafter specified, during the term of this contract or any renewal or extension thereof, potable treated water meeting applicable purity guidelines of the West Virginia Department of Health, and such other governing regulations as from time to time may govern the potable water quality control standards, in such quantity as may be required by Purchaser not to exceed: An annual average of 1,200,000 per month or at an increased amount under terms and conditions as may be negotiated from time to time.

5 2. POINT OF DELIVERY AND PRESSURE. That water will be furnished at a reasonably constant pressure from the Seller s existing distribution system. Purchaser is responsible for water pressure from points of delivery to Purchaser s customers. 3. EMERGENCY FAILURES. Emergency failures of pressure or supply due to main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake or other emergency or catastrophe, beyond control of Seller, shall excuse Seller from this provision of Paragraph A.2. for such reasonable periods of time as may be necessary to restore service. 4. METERING EQUIPMENT. To furnish, install, operate, and maintain at point of delivery the requisite meter or meters (consisting at present time of one (1) four-inch and two (2) six-inch meters), including meter houses or pits, concrete vaults, plumbing, bypass lines, and test fittings to insure uninterrupted service during meter testing and servicing, and required devices of standard type for properly measuring the quantity of water delivered to Purchaser and to calibrate such metering equipment not less frequently than once every 3 years but will, upon request of the Purchaser, be tested at the Purchaser s expense, but not more frequently than once every twelve (12) months. A meter registering not more than two percent (2%) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for one (1) month previous to such test in accordance with the percentage of inaccuracy found by such tests. If any meter fails to register for any period, the amount of water furnished during such period shall be deemed to be the amount of water delivered in the corresponding period immediately prior to the failure, unless Seller and Purchaser agree upon a different amount. The metering equipment shall be read monthly. An appropriate official of Purchaser, at the convenience of Seller, shall have access to the meters for the purpose of verifying its readings. 5. BILLING PROCEDURE. Seller shall furnish Purchaser, at the below address on a monthly basis, an itemized statement of the amount of water furnished to Purchaser during the preceding month: 890 Washington Pike, Wellsburg, West Virginia B. PURCHASER AGREES: 1. RATES AND PAYMENT DATE. To pay Seller, not later than the loth day of each month, for water delivered at a rate of $6.46 per thousand gallons. C. IT IS MUTUALLY AGREED BETWEEN SELLER AND PURCHASER AS FOLLOWS: 1. TERM OF CONTRACT. That this contract shall remain in fbll force and effect until such time as the Seller passes a new water rate Ordinance to increase, decrease, and/or otherwise adjust it s water rates. 2. FAILURE TO DELIVER. That Seller will, at all times, operate and maintain it s system in an efficient manner and will take such action as may be necessary to furnish Purchaser with quantities of water required by Purchaser. Temporary or partial failure to deliver water shall be remedied with all possible dispatch. In the event of an extended shortage of water available to Seller or the supply of water available to Seller is otherwise diminished over an extended period of time, the supply of water to Purchaser s consumers shall be reduced or diminished in the same ratio or proportion as the supply to Seller s consumers is reduced or diminished. 3. MODIFICATION OF CONTRACT. That the provisions of this contract may be modified or altered by mutual agreement as permitted by law, but prior consent and approval of the Public Service Commission must be obtained. 2

6 REGULATORY AGENCIES. That this Contract is subject to such rules, regulations, and/or laws as may be applicable to similar agreements in this State. ASSIGNMENT. This Contract shall not be assigned or subcontracted by Purchaser to any person, firm or corporation without the prior written consent of Seller and the approval of the Public Service Commission of West Virginia. SUCCESSOR TO PURCHASER. That, in the event of any occurrence rendering Purchaser incapable of performing under the contract, any successor of Purchaser, whether the result of legal process, assignment, or otherwise, shall succeed to the rights and obligations of Purchaser hereunder, subject to Paragraph Five (5) hereof. GOVERNING LAW. This Agreement shall be governed in all respects by the laws of the State of West Virginia. DISPUTE RESOLUTION. If any dispute arises in connection with this Agreement, either party may give notice to the other party of the same, whereupon the parties shall meet promptly and in good faith attempt to reach an amicable settlement. In the event of a failure to reach an amicable settlement, either party may file a Complaint with the West Virginia Public Service Commission; provided, however, that nothing in this contract shall in any way prohibit, restrict, and/or otherwise limit either party s right to seek legal redress, in law or in equity, in any court of competent jurisdiction. ENTIRETY OF AGREEMENT. This Agreement represents the entire agreement between the parties in relation to the subject matter thereof and supersedes any or all previous agreements or arrangements, whether oral or written, between the parties in respect to the sale and purchase of water, or the other contents of this Agreement. 10. WAIVER. The failure by either of the parties to enforce against the other any term or provision of this Agreement shall not be deemed a waiver of such party s right to enforce against the other party the same or any other such term or provision in the future HEADINGS; CONSTRUCTION. The headings and captions contained in this Agreement are for convenience only and in no way limit or enlarge the scope or meaning of the language of this Agreement. 12. NOTICES. All notices given pursuant to this Agreement shall be in writing and shall be delivered by certified mail, return receipt requested, at the parties respective addresses below: City of Follansbee Attn: Mayor P.O. Box Main Street Follansbee, WV Washington Pike Public Service District Attn: Chairman 890 Washington Pike Wellsburg, WV Or to such other address as either party may provide to the other party, in writing, from time to time. 3

7 13. EFFECTIVE DATE. This Agreement shall become effective immediately upon the approval of the West Virginia Public Service Commission. XN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies, have caused this contract to be duly executed in two counterparts, each of which shall constitute an original. WI'TKESS TIIE FOLLOWING; SIGNATURES AND SEALS Tills ilp)l DAI' OF SELLER: CITY OF FOLLANSBEE, WEST VIRGIMIA By: PURCHASER: WASHINGTON PIKE PUBLIC SERVICE DISTRICT By: BRUS 3 TAYc Chnirmnn