Last Friday, another petition to intervene out of time was filed with the PSC regarding bulk treatment rates for a customer of Kanawha Falls PSD. This time it was the sanitary board of the city of Smithers regarding sewer rates. In 2003, the city of Smithers provided a contribution in aid of construction totaling a little over 1 million dollars to Kanawha Falls PSD as part of the funding to enable the districts wastewater treatment plant project to go to construction. The funding package was comprised of a small cities block grant as well as various loans, which the city continues to pay off, expecting them to be fully amortized in 2043.
As a result of this contribution in aid of construction, the PSC approved a credit for Smithers as a resale customer of Kanawha Falls PSD in 2006.
Similar to the WVA manufacturing intervention, the Smithers Sanitary Board claims they were presented with no information or notice regarding the rate impact of the proposed transaction. The city alleges the Fayette County Commission and West Virginia American Water failed to comply with a PSC order issued January 20th of 2026 which read “It is therefore ordered that West Virginia American Water Company and the Fayette County Commission shall file a revised proposed notice of acquisition within two days of the date of entry of this order that includes the rate impacts of the proposed transaction for all customer classes, including any impacts on customers currently receiving special or non-standard rates.”
The Smithers Sanitary Board states further that, “Since no notice has been provided, there should be no change to the resale rate.”
In testimony provided to the PSC, Smithers mayor Anne Cavalier showed concern over a potential change in the resale rate stating “I am aware that West Virginia American’s sewer rates to its direct customers are very high compared to the rates of other sewer systems in the state, and I would expect its resale rate might also be considerably higher than what KFPSD is charging. This could have a very sizable detrimental impact on our customers, as we would need to pass through every increment of bulk rate increase to our customers.”
The Consumer Advocate Division of the public service commission also filed a statement of position on Monday. In it they state “The CAD is unable to support the ultimate approval of the amended agreement at this time because the parties do not currently know the amount of government agency loans and grants owed by the districts that the county commission will be responsible for paying back according to the amended agreement.”
The Consumer Advocate Division does state however, that they would support a purchase acquisition with “reasonable and appropriate terms and conditions”.
The issue of public money benefiting a private company has accompanied the purchase agreement since the Fayette County Commission approved it and the CAD further states “The CAD continues to have significant questions regarding the overall public interests associated with the proposed transfer and acquisition, and it is clear that those concerns can’t be fully addressed until a final determination is made regarding the level of repayment demanded by the various entities which have already dedicated large quantities of public grants and loans to support the construction and development of the existing Kanawha Falls water and sewer systems.”
The testimony of, Mark Sarver, the new acting director of the West Virginia Water Development Authority was also filed Monday.
When asked if the agency’s previously stated position had changed in regard outstanding financial commitments made from the WDA and IJDC to Kanawha Falls PSD he answered “No. Any outstanding revenue bonds or loans of the districts would need to be fully satisfied or defeased before the sale closes to comply with the terms, conditions, and covenants applicable to those bonds or loans.”
