ICE COMMISSION OF MEST VIR~INIA CHARLESTON. Issued: May 4,20 18 PROCEDURAL ORDER

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1 ICE COMMISSION OF MEST VIR~INIA CHARLESTON Issued: May 4,20 18 CASE NO W-MA RAINELLE MUNICIPAL WATER DEPARTMENT a municipal utility. Investigation and suspension of increase in water rates and charges as a result of petitions filed in accordance with W.Va. Code b. PROCEDURAL ORDER This Order clarifies the scheduling of an additional hearing for May 16, 2018, at 1 :30 p.m. and the requirement for Rainelle to i~mediately publish notice of the hearing. PROCEDURE On or about January 22, 2018, the Rainelle Municipal Water Department (Rainelle) adopted an ordinance increasing the rates and charges by thirty percent to its water customers to become effective on March 8, On January 26, 20 18, the Commission received a Petition of protest which appeared to be signed by not less than twenty-five percent of Rainelle s water customers. The Petition requested suspension of any water rate increase and Commission review of the ordinance pursuant to Rule 44 of the Commission s Rules for the Construction and Filing of Tariffs under W.Va. Code $24-2-4b. By Cornmission Order dated February 2, 201 8, the Commission invoked its municipal rate jurisdiction under W.Va. Code $24-2-4b to suspend the proposed rates. The Commission referred the matter to the Division of Administrative Law Judges with a decision due date of on or before June 6, It also required Commission Staff to file a report on or before April 23, Finally, the Commission required publication of a Notice of the matter in a newspaper of general circulation in Rainelle. By Procedural Order dated February 9, 2018, a hearing on the merits was scheduled for April 30,2018.

2 I On February 14, 2018, Rainelle challenge the Commission s jurisdiction by questioning certain signatures on the protest petition. By Procedural Order dated February 16, 2018, a hearing on jurisdiction was scheduled for March 13, 2018, at 1:OO p.m. in Rainelle, West Virginia. On March 12, 2018, Rainelle filed a response which agreed to the Commission s jurisdiction in the matter. By Procedural Order dated March 12, 2018, the hearing on the issue of jurisdiction was canceled. By Procedural Order dated March 13, 2018, Rainelle was required to publish notice of the hearing on the merits scheduled for April 30, On March 14,201 8, Rainelle filed responses to Staff data requests. On March 19,20 1 8, Rainelle filed a request for emergency interim rate relief. By Procedural Order dated March 20, 20 18, Staff was required to file a recommendation regarding interim rate relief. On March 30, 2018, Staff Attorney Chris Howard filed the Further Joint Staff Memorandum Including Emergency Rate Recommendation to which was attached the March 29, Utilities Division Interim Recommendation prepared by Josh Allen, Utilities Analyst, Utilities Division. Staff opined that, based on both the per books adjusted cash flow analysis and the cash flow impact of FEMA funds and associated expenses, the District did not need an interim rate increase. On April 5, 20 18, Bonnie Wallace filed a letter with attachments. By Procedural Order dated April 6,2018, Rainelle was given ten days from the date of this Order in which to file a response or objection to Staffs further recommendation regarding interim rate relief, or to request for a hearing on the issue. On April 23, 2018, Staff Attorney Howard filed the Final Joint Staff Memorandum to which was attached the April 20, 2018 Rule 42 Exhibit/Water Operations and the April 20, 2018 Revenue RequirementdStaff Recommended Rates, both prepared by Mr. Allen. Staff recommended inter alia rates which will generate $14,058 annually, a 3.62% increase over rates in effect prior to the case. On April 30, 2018, the hearing was held as scheduled. Chris Howard, Esquire, appeared on behalf of Commission Staff. Despite the fact that J. Michael Anderson, Esquire, entered an appearance on behalf of Rainelle in a February 14, filing, no counsel appeared on behalf of 2

3 I ~ I Rainelle. Mayor Pendleton testified that notice of the hearing had not been published as directed by the Commission. Due to the lack of public notice, an additional hearing was scheduled by Procedural Order dated May 2, 2018, for May 16, 2018, at 1:30 p.m. and Rainelle was required to immediately publish notice of the hearing. On May 3, 2018, Rainelle filed a letter with attachments signed by Kristina Skaggs, the Town Clerk. Among other things, Ms. Skaggs represented that Rainelle had published what was required by a prior Procedural Order regarding a March 13, 2018 hearing. The letter had an affidavit attached for a publication of the hearing on jurisdiction. Ms. Skaggs indicated that Rainelle never received anything else which required publication. Ms. Skaggs also indicated that Rainelle was caught off guard and the mayor thought the hearing would be for the purpose of informing the public of the Commission s rates. DISCUSSION Ms. Skaggs letter demonstrates significant confusion on the part of Rainelle. It requires that an additional Procedural Order be issued to clarify why a second hearing is necessary and why Rainelle must have notice of the second hearing published immediately. The attachments to Ms. Skaggs letter reflect that Rainelle only published notice of the March 13, 2018 hearing on jurisdiction which was canceled after Rainelle conceded Commission jurisdiction. After Rainelle agreed to Commission jurisdiction a Procedural Order was issued on March 13, 2018 which required Rainelle to publish notice of the April 30, 2018 hearing on the merits. The Commission s file reflects that J. Michael Anderson, Esquire, Counsel for the Town of Rainelle, received a copy of the March 13,2018 Procedural Order on March 16, Rainelle had notice of the publication requirement and the hearing on the merits through its counsel, Mr. Anderson. Normally, as in the instant case, when parties are represented by counsel, the Commission s orders are served upon the parties counsel and not upon the parties. Because Rainelle failed to give notice of the April 30, hearing and apparently failed to understand the purpose of the hearing, a second hearing must be scheduled for May 16, Rainelle must immediately have notice published of the hearing as required by the May 2, Procedural Order. Because Ms. Skaggs indicated that the mayor misunderstood the purpose of the hearing, Rainelle will be permitted to put on evidence, if it chooses, in opposition to Staffs position in the matter. Staff should have its witnesses available to testify at the May 16, hearing. ORDER IT IS, THEREFOW, ORDERED that a second hearing is scheduled for May 16,2018, at p.m. at Rainelle City all, Council Chambers, 201 Kanawha Avenue, Rainelle, West Virginia. The purpose of this hearing is to determine the proper water rates for Rainelle s water

4 customers. Both public comment and evidence will be received. The public must have notice of the hearing. IT IS FURTHER 0 ERED that the Rainelle Municipal Water Department immediatel~ publish the attached notice (Appendix A), once a week for two consecutive weeks, in a qualified newspaper published and generally circulated in Greenbrier County. IT IS FURTHER ORDERED that the Rainelle Municipal Water Department immediately post a copy of the attached notice (Appendix A) in a conspicuous place in its billing office and leave it posted until the conclusion of the hearing. IT IS FURTHER ORDERED that the Executive Secretary send a copy of this Order to Bonnie Wallace, 1348 Sewell Street South, Rainelle, West Virginia 25962, by first class mail. IT IS FURTHER ORDERED that the Executive Secretary serve this Order upon Commission Staff by hand delivery, upon all parties of record who have filed an e-service agreement with the Commission by electronic service and upon all other parties, including the Rainelle Municipal Water Department and its counsel, by U.S. Certified Mail, return receipt requested. Additionally, this Order is to be served upon both counsel for the Rainelle Municipal Water Department and upon the Rainelle Municipal Water Department by facsimile transmission. Administrative Judge DYV:lc:kj s ah.doc I' mtblic Service Commission 4

5 PUBLIC SERVICE C O~~ISSION OF WEST VIRGINIA CHARLESTON CASE NO W-MA RAINELLE MUNICIPAL WATER DEPARTMENT a municipal utility. NOTICE OF HEARING On or about January 22, 2018, the Rainelle Municipal Water Department adopted an ordinance increasing its water rates by approximately 30%, effective March 8, On January 26, 2018, the West Virginia received a protest petition which was signed by not less than 25% of Rainelle s water customers. On February 2,20 18, the Commission invoked its jurisdiction over the rates. On March 12, 20 18, Rainelle agreed to the Commission s jurisdiction over rates. The matter has been set for hearing on May 16, 2018, at 1:30 p.m. in the Rainelle City Hall, 20 1 Kanawha Avenue, Rainelle, West Virginia. Interested individuals may appear and be heard regarding the proper rates for the Rainelle Municipal Water Department. Individuals may also make written comment to the Executive Secretary,, Post Office Box 812,, West Virginia 25323, on or before May 16, 2018.