West Virginia American Water Company will buy five smaller utilities in Jefferson County for 27 Million
CHARLESTON, W.Va. — The Public Service Commission of West Virginia has approved a plan to allow West Virginia American Water Company to acquire five smaller water and sewer utilities in Jefferson County for $27 million. The five are Jefferson Utilities, Inc., Cave Road Utilities, Valley Water & Sewer Services, Inc., East Jefferson Sewer Services, L.L.C., and Shenandoah Junction Public Sewer Services, Inc. Combined, they serve 3,885 water and sewer customers in Jefferson and Morgan counties.
In a press release announcing the approval, the state Public Service Commission stated that Cave Road Utilities and Shenandoah Junction Public Sewer Services had previously filed petitions to determine if they were distressed or failing utilities. Cave Road was acquired by Jefferson Utilities prior to the filing of this case.
“West Virginia American Water will phase in new rates for these customers over two to three years. In the first year, a bill for an average usage level for residential customers acquired in this transaction should be no more than $15 per month over their current rates,” according to the announcement.
The Commission approved the post-acquisition addition of the $27 million purchase price to West Virginia American Water’s rate base. It ordered that the company should file its proposed accounting for the acquisition adjustment as a closed entry so that it is included in its base rate case and properly amortized in future rate cases.
More information on this case can be found on the PSC website: www.psc.state.wv.us