Bodes &x,.,, ATTORNEYS AT LAW 600 Quarrier Street Charleston, West Virginia 25301

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1 101 South Queen Street Martinsburg. West Virginia Harnpton Center Morgantown. West Virginia Aveiy Street Parkersburg, West Virginia James V. Kelsh lelephone - (304) Facsimile -- (304) Bodes &x,.,, ATTORNEYS AT LAW 600 Quarrier Street Charleston, West Virginia Post Office Box 1386 Charleston, West Virginia (304) w.bowlesrice.com September 27,2017 Southpointe Town Center 1800 Main Street, Suite 200 Canonsburg. Pennsylvania Chapline Street Wheeling, West Virginia West Jubal Early Drive, Suite 130 Winchester, Virginia Address: jkelsh~bowlesrice.corn Ingrid Ferrell Executive Secretary Division Public Service Commission of West Virginia 201 Brooks Street WND DELIVERY Re: Case No PWD-421 Preston County Public Service District No. I Dcar?if::. Feirell: On behalf of the Preston County Public Service: District, p1ea.se find enclosed the origins1 and twelve (12) copies of the Joint Stiplafion and Seitlemenf Agreement in the abovereferenced matter. Very truly yours, JVWdlm Enclosures cc: Ronald Robertson, Jr., Esquire Jackie Foman

2 PUBLIC SERVICE COMMISSION WEST VIRGINIA CHARLESTON CASE NO PWD-42T PRESTON COUNTY PUBLIC SERVICE DISTRICT NO. 1, a public corporation. JOINT STIPULATION AND SETTLEMENT AGREEMENT Now comes the Preston County Public Service District No. 1 ( District ), by counsel, James V. Kelsh of Bowles Rice LLP, and the Staff of the Commission ( Staff ) by its counsel, Ronald E. Robertson, (collectively, the Stipulating Parties ), to enter into this Joint Stipulation and Settlement Agreement ( Joint Stipulation ). % WHEREAS, on June 8, 2017 the District filed a 29.3% across-the-board water rate increase application ( Application ) pursuant to the Commission s 42T procedure, with increased rates in efi ecl for ail service rendered after July 8, 2017; WHEREAS, the increased rates in the Application were based upon the District issuing bonds payable over 20 years for several purposes, specifically: (a) to meet the District s obligations as a local sponsor on a dam replacement project which will provide the District with greater raw water security in the future; (b) to pay the cost of upgrading standby raw water source transmission facilities; (c) to pay for the cost of constructing interconnection facilities with both Masontown and Preston County Public Service District No. 2 to provide greater water security on an interim and permanent basis; (d) to pay for improvements to the District s water treatment plant and office and to purchase new vellicles. WHEREAS, the District also sought increased rates to enable it to implement a pay raise to its employees; WHEREAS, by its Order of June 27,2017 the Commission suspended the rates in the Application until November 6,2017, referred this matter to the Division of Administrative

3 Law Judges for the issuance of a recommended decision by September 25,2017, and directed Staff to file its report by August 7,2017; WHEREAS, the District submitted to the Commission on July 18,2017 Tariff Form No. 6 and an affidavit of publication, demonstrating that it had made proper notice of the Application; WHEREAS, on July 21,2917, the District filed a motion to Toll, Extend the Administrative Law Judge Decision Due date and Extend the Staff Report due date; WHEREAS, on July 28,2017 the Commission extending the decision due date to October 6,2017, and tolled the rates until November 17, 2017; WHEREAS, on August 1,2017 a procedural order was issued setting this matter for hearing on September 5,2017 in Kingwood, WV and directing the District to publish notice of the hearing; WHEREAS. No six letters of protests were filed to the Application, but no petitions to intervene were filed; WHEREAS on August 28, 2017, the Second Final Joint Staff Memorandum and Staff Report were filed, which reconmended that the District receive a rate increase of 22.52% across-the-board rate increase; WHEREAS, at the hearing on September 5, 2017, the District tendered an affidavit of publication of the notice of hearing, the Commission received public comment but 110 petitions to intervene, and the District and Staff participated as the only parties; WHEREAS at hearing, the District's witness, Michael D. Grifi'ith, CPA, sponsored Utiiity Exhibit 4, a revised tariff supported by the District which, based upon the District issuing a bond with a 30 year terms, would allow the District to undertake all of its proposed water upgrades and pay increases, while implementing a reduced, 19.2% across-theboard rate increase; WHEREAS, subsequent to the hearing, Staff and the District met and reached a proposed settlement of all issues in dispute; 2

4 In resolution of the issues in the above captioned matter, the Stipulating Parties jointly stipulate and agree to urge the Commission to adopt the following terms: 1. Staff stipulates to the cash flow analysis as shown in Utility Ex Approval of the tariff attached hereto as Attachment 1, which contains the rates presented on Utility Ex. 4 with the exception that the minimum charges presented on Utility Ex. 4 for 1 and 114 inch, 4, 6, and 8 inch meters have been removed, effective for all service rendered on and after November 17, The order should require the District to make the following closed entry filings with the Commission within 60 days of the Commission s order becoming final: (a) the final bond resolution with all terms and conditions, including a provision that the District s debt service coverage will be 110% once the Bond Resei-ve Account is fully funded; (b) proof of having paid in full the District s 95A and 95B USDA bonds. 4. The order should require the District to make the following closed entry filings mith the Commission within 90 days of the Commission s order becoming final: (a) proof of establ&nient of a pmject fund bank account for the District s local sponsor obligation of $1,319,000; (b) proof of establishment of a project fund bank account for the District s water upgrades as shown on Utility Ex. 8 excluding the amounts for the District s local sponsor obligation; (c) proof of paying approximately $262,000 for engineering, accounting, and administrative costs; (d) proof of purchasing the three trucks shown on Utility Ex. 8; (e) proof of commencing payment on some aspects of the Plant and Office upgiades shown on Utility Ex The ordcr shouid require the District file with the Commission proof of substantial completion of the Plant and Office upgrades, and the dam upgrade project. 6. This Joint Stipulation is entered into subject to the acceptance and approval of the Commission. It is made without any admission or prejudicc to any other positions that may be taken by any party or other issues, or to positions that may be taken by any party on the same or similar issues in subsequent proceedings. 3

5 7. The Stipulating Parties agree this Joint Stipulation is in the public interest and represents a consensus of a broad range of interests. The Joint Stipulation is fair, reasonable and supported by the record. The Stipulating Parties acknowledge that it is the Commission's discretion, however, to accept, reject or modify any joint stipulation. In the event that this Joint Stipulation is rejected or modified by the Commission, it is expressly understood that the Stipulating Parties are not bound to accept this Joint Stipulation as modified or rejected and may avail themselves of whatever rights are available to them by law including requesting to reconvene the hearing, and may pursue fully all issues and positions herein as if no proposed settlement or stipulation had been agreed to. In such circumstances, this Joint Stipulation shall not be admissible for any purpose other than enforcement of this paragraph. WHEREFORE, on the basis of the foregoing, the Stipulating Parties respectfully request the Commission make appropriate findings of fact and conchxiom of law adopting and approving this Stipulation. Dated this 27,'": day of September, PRESTON COUNTY PUBLIC SERVICE DISTRICT NO. 1 z6 wles Rice LLP ost Office Box 1386 Charleston, West Virginia STAFF OF THE COMMISSION By Counsel Ronald E. Robertson (WVSme Bar No. 4658) P.O. Box 812 Charleston, WV

6 ATTACHMENT

7 P.S. C. W. Va. No. 14 Canceling P.S.C. W. Va. No. 13 PRESTON COUNTY PUBLIC SERVICE DISTRICT NO. 1, a public utility OF REEDSVILLE. WEST VIRGINIA RATES, RULES AND REGULATIONS FOR FURNISHING WATER at Reedsville, Arthurdale and adjacent areas in Preston County, West Virginia Filed with THE PUBLIC SERVICE COMRlISSlON of WEST VIRGJNIA Issued October -, 2017 Effective for service rendered on and after November 17, 2017 or as otherwise provided herein. issued by authority of an order-of The Public Service Commission of West Virginia In Case No PWD-42T dated October _-, Issued by PRESTON COUNTY PUBLIC SERVICE DISTRICT NO. 1, a public utility Attorney Title

8 PRESTON COUNTY PUBLIC SERVICE DISTRICT NO. 1 P.S. C. W. Va. No. 14 (Water) Original Page No. 1 RULES AND REGULATIONS I. Rules and Regulations for the Government of Water Utilities, adopted by the Public Service Commission of West Virginia, and now in effect, and all amendments thereto and modifications thereof hereafter made by said Commission.

9 PRESTON COUNTY PUBLIC SERVICE DISTRICT NO. 1 P.S. C. W. Va. No. 14 (Water) Original Page No. 2 RATES APPLICABILITY Applicable within the entire territory served AVAILABILITY OF SERVICE Available for general domestic, commercial, industrial and sale for resale water service (I) RATES (Customers with metered water supply) First Next Next Next All over 3,000 gailons 3,000 gallons 4,000 gallons 10,000 gallons 20,000 gallons $12.20 per 1,000 galloxls $ 9.75 per 1,000 gallons $ 8.35 per 1,000 gallons $ 7.00 per 1,000 gallons $ 4.85 per 1,000 gallons (I) -&&JJIJUMCHARGE No bill =,vi11 be rendered for less than the following based on the size of meter size: 5/8 inch meter 314 inch meter 1 inch meter inch meter 2 inch meter 3 inch meter $ per month!e per month $ per month $ per month $ per month $ per month UED PAYMENT PENA TY The above schedule is net. On all accounts not paid in full when due, ten percent (10%) will be added to the net current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate. - I CONNECTION CHARGE 'The following charge is to be made whenever the utility installs a new lap to serve an applicant: A tap fee of $ will be charged to customers who apply for service outside of a certificate proceeding before the Commission for each new tap to the system. (I) Indicates increase

10 PRESTON COUNTY PUBLIC SERVICE DISTRICT NO. 1 P.S. C. W. Va. No. 14 (Water) Original Page No. 3 RATES (Continued) RECONNECTION CHARGE $ To be charged whenever a supply of water is turned off for violation of rules, non-payment of bills, or fraudulent use of water. (I) (I) PRIVATE FIRE PROTECTION SERVICE Where connections, hydrants, sprinklers, etc., on private property are maintained by consumer: $ annual fee. LEAK ADJTJSTMENT $1.38 per 1,000 gallons is to be used when the bill reflects unusual consumption which can be attributed to eligible leakage on the customer's side of the meter. This rate shall be applied to all such consumption above the customer's historical average usage RE JYRNED CHECK. CHARGE. A service charge equal to the actual bank fee assessed to the District up to a 7'' maximum of $25.00~will be imposed upon any customer whose check for payment of charges is returned by their bank due to insufficient funds. SECliRXY DEPOSIT.~ ~ _..I_ A deposit of $50.00 or two-twelfth (2112) of tb.e average anuual usage of the applicant's specific customer class, whichever is greater. (I) Indicates crease

11 CASE NO PWD-42T PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON PRESTON COUNTY PUBLIC SERVICE DISTRICT NO. 1, a public corporation. CERTIFICATE OF SERVICE I, James V. Kelsh, counsel for Preston County Public Service District No. 1, do hereby certify that a copy of the foregoing "Joint Stipulation and Settlement Agreement" has been served this 27' day of September, 2017, upon the following in the manner indicated: VIA HAND DELIVEX: Ronald Robertson, Esquire West Virginia Public: Service Commission 201 Brooks Street Charlestgn, West Virginia