PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON COMMISSION ORDER
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1 '' ' - ENTERE A PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON ORIGINAL comOllZOl.wpd At a session of the PUBLIC SERVICE COMMISSION OF WEST VIRGINIA in the City of Charleston on the 12h day of January, CASE NO W-PC WEST VIRGINIA-AMERICAN WATER COMPANY Petition for consent and approval of the sale of the former Princeton Water Treatment Plan property. COMMISSION ORDER On November 20, 2000, West Virginia-American Water Company (WVAWC) petitioned, pursuant to W. Va. Code (c), for permission to sell the former Princeton Water Treatment Plant to Stafford Drive Associates Limited Partnership. Petition pp The property is a 1.39-acre tract with a building that formerly housed water treatment and pumping equipment, several offices and a small laboratory. Id. p. 1. The Princeton Water Treatment Plant was taken out of operation in May 1997, after WVAWC's Bluestone Regional Water Treatment Plant was completed. Id. The Bluestone plant supplies all of Princeton's current and foreseeable needs. Id. All of the water treatment and pumping equipment has been removed and the wells located on the property have been capped. Id. Certain water mains, valves and a fire hydrant remain in service, and an easement will be reserved for these facilities, WVAWC said. Id. p. 2. Thus, except for the reserved facilities, the property is no longer used or useful in providing utility service. Id. D
2 The property was appraised at $250,000, with the assumption that the building would be demolished and the grade slightly raised to the level of surroundmg land. Id. It will cost $30,000 to $40,000 to remove the building and regrade the lot, WVAWC said. Id. Stafford believes the building may have some potential commercial value and has offered to pay $235,000 for the property as is, provided that the commercial use potential is confimed by an engineering inspection and analysis. Id. Under these circumstances, WVAWC says that the $235,000 purchase price is reasonable. Id. If it is determined that the building does not have commercial value, a price of at least $2 10,000 would be fair and reasonable, WVAWC said. Id. Therefore, WVAWC asked to be authorized to negotiate with any prospective purchaser for a price of at least $210,000. Id. The sale of this property will have no effect on WVAWC s utility service or of any other utility operated in West Virginia, WVAWC said. Id. The sale terms are the result of an arms-length transaction between fully informed parties, and neither WVAWC nor Stafford has been given an undue advantage over the other. Id. p. 3. On December 11,2000, Commission Staff recommended that permission be granted to sell the property. Initial & Final Joint Staff Memorandum p. 1. Staff said the terms were reasonable, no party had an undue advantage and the sale would not affect any utility. Id. 2 =
3 p. 2. Technical Staff advised that this property was adjacent to a smaller tract that WVAWC was authorized to sell previously. See Comm n Order, West Virginia-American Water Co., Case No W-PC (Jan. 3, 2000). DISCUSSION W. Va. Code requires a public utility to receive permission from the Commission prior to selling property, in pertinent part as follows: Unless the consent and approval of the public service commission of West Virginia is first obtained: *** (c) no public utility... may... sell... its... property or any part thereof... *** The commission may grant its consent in advance... upon proper showing that the terms and conditions thereof are reasonable and that neither party thereto is given an undue advantage over the other, and [the terms and conditions] do not adversely affect the public in this state. *** The commission shall prescribe such rules and regulations as, in its opinion are necessary for the reasonable enforcement and administration of this section, including the procedure to be followed, the notice to be given of any hearing hereunder, if it deems a hearing necessary, and after such hearing or in case no hearing is required, the commission shall, if the public will be convenienced thereby, enter such order as it may deem proper and as the circumstances may require, attaching thereto such conditions as it may deem proper, consent to the entering into or doing of the things herein provided, without approving the terms and conditions thereof, and thereupon it shall be lawful to do the thmgs provided for in such order. 3
4 We fmd persuasive WVAWC s and Staffs positions that the terms and conditions are reasonable, that neither party is given an undue advantage over the other, that the transaction does not adversely affect the public in this state, and that the transaction likely will have no effect on other utilities. Therefore, without approving the underlying terms and conditions, we shall grant the Commission s consent for WVAWC to sell the property to Stafford for $235,000, or to another purchaser for not less than $210,000 if it is determined that the building does not have commercial value. The sale will have no impact upon ratepayers or other utilities. Therefore, pursuant to the discretion accorded by the statute, the Commission shall not require hearing and notice in this case. FINDINGS OF FACT 1. OnNovember 20,2000, WVAWC petitioned, pursuant to W. Va. Code (c), for permission to sell the former Princeton Water Treatment Plant to Stafford. Petition pp The property is a 1.39-acre tract with a building that formerly housed water treatment and pumping equipment, several offices and a small laboratory. Id. p The Princeton Water Treatment Plant was taken out of operation in May 1997, after WVAWC s Bluestone Regional Water Treatment Plant was completed. Id. The 4 Public.S*Nie Commission
5 Bluestone plant supplies all of Princeton s current and foreseeable 3. The property was appraised at $250,000, with the assumption that the building would be demolished and the grade slightly raised to the level of surrounding land. Id. It will cost $30,000 to $40,000 to remove the building and regrade the lot, WVAWC said. Id. 4. Stafford believes the building may have some potential commercial value and has offered to pay $235,000 for the property as is, provided that the commercial use potential is confirmed by an engineering inspection and analysis. Id. 5, If it is determined that the building does not have commercial value, a price of at least $210,000 would be fair and reasonable, WVAWC said. Id. Therefore, WVAWC asked to be authorized to negotiate with any prospective purchaser for a price of at least $210,000. Id. 6. On December 11,2000, Staff recommended that permission be granted to sell the property. Initial & Final Joint Staff Memorandum p. 1. Staff said the terms were reasonable, no party had an undue advantage and the sale would not affect any utility. Id. p. 2. CONCLUSIONS OF LAW 5
6 1. Except for water mains, valves and fire hydrants to be reserved, the property is no longer used or useful in providing utility service. Id. 2. The sale of this property will have no effect on WVAWC s utility service or of any other utility operated in West Virginia. The sale terms are the result of an arms-length transaction between fully informed parties and are reasonable, and neither WVAWC nor Stafford has been given an undue advantage over the other. 3. Therefore, pursuant to W. Va. Code (c), the Commission should grant its consent, without approving the underlying terms and conditions, for WVAWC to sell the property more fully described above to Stafford for $235,000 as is, or to another purchaser for not less than $210,000 if it is determined that the building does not have commercial value. 4. Since the sale will have no impact upon ratepayers or other utilities, the Commission shall not require hearing and notice in this case, pursuant to the discretion accorded by the statute. ORDER IT IS THEREFORE ORDERED that WVAWC s petition, pursuant to W. Va. Code (c), is granted, without approving the underlying terms and conditions. WVAWC 6
7 may sell the property more fully described above to Stafford for $235,000 as is, or to another purchaser for not less than $210,000 if it is determined that the building does not have commercial value. IT IS FURTHER ORDERED that hearing and notice are waived, pursuant to W. Va. Code IT IS FURTHER ORDERED that this proceeding be removed fiom the Commission s docket of active cases. IT IS FURTHER ORDERED that the Commission s Executive Secretary serve a copy of this order upon all parties of record by United States First Class Mail and upon Commission Staff by hand delivery. OTIS D. CASTO, Commissioner &2& MARTHA Y. WALKE~ Commissioner /fli CHAKOTTE R. LANE; Chairman CLWIsek c.wpd - 7 E
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