(ORDER FROM WV PUBLIC SERVICE COMMISSION FOLLOWS)
On January 26, 2024, Hancock PSD filed a Petition for Recommendation of
Funding from the Distressed Utilities Account (Petition for Recommendation).
According to Hancock PSD, at the WVIJDC meeting held on December 19,2023,
Hancock PSD was directed to file an application with the United States Department
of Agriculture Rural Development to obtain additional funding to pay the acquisition
price for Newell’s wastewater system? According to Hancock PSD, the funding
package currently proposed to finance the acquisition consists of the following
sources:
- Petition to Reopen r[ 11.
Id. fi 12.
Petition for Recommendation fi 13.
Id. fir[ 12-14.
2
DISCUSSION
To obtain grant funding for $5 million from the Water Development Authority
Distressed Utilities Account, Hancock PSD requested a recommendation from the
Commission in accordance with the plan developed pursuant to W. Va. Code fj 24-
2H-1 et seq. W. Va. Code § 24-2H-8(e) provides, in part, that “[a] nonprofit
acquiring public utility may seek grant funding from the Distressed Utilities Account
established pursuant to § 31-15A-9(i) of this code to repair, maintain, and replace
the distressed water and wastewater utilities as needed.”
Pursuant to W. Va. Code § 31-15A-9(i),
The Water Development Authority shall establish a separate restricted
account within the infrastructure fund to be expended for the repair
and improvement of failing water and wastewater systems by
nonprofit public utilities from grants approved by the council and
supported by recommendations from the Public Service Commission
in accordance with the plan developed under 924-2H-I et seq. of this
code. The restricted account shall be known as the Distressed Utilities
Account. Annually, the council may request the Water Development
Authority to transfer from the uncommitted loan balances for each
year a total amount not to exceed $5 million to the restricted account
to fund the grants approved by the council during that fiscal year.
Notwithstanding the provisions of $31-15A-1 O(b) of this code, the
council may approve grants from this account for up to 100 percent of
the cost of failing utility repairs, replacements and improvements and
such grant along with other grants awarded by the council may
exceed 50 percent of the total project cost: Provided, That at no time
may the balance of the restricted account exceed $5 million.
This matter has been pending before the Commission since December of
2020, when Newell requested that the Commission determine whether it was a
3
distressed or failing utility under W. Va. Code § 24-2H-6(a). It has been over a year
since the Commission directed Hancock PSD to pursue the grant funding for the
acquisition of Newell’s wastewater system.6 The Commission understands that
applying for and obtaining grant funding, especially in the amount needed by
Hancock PSD to acquire the system and make repairs, takes time. However, the
Commission found that Newell was a failing utility nearly two years ago and we
have concerns about the quality and reliability of services Newell’s wastewater
customers are currently re~eiving.~
Hancock PSD has represented to the Commission that a $5 million grant
from the Distressed Utilities Account is “critical and necessary” to its funding
package? The Commission encourages Hancock PSD to continue its efforts to
secure the grants and loans listed in its proposed funding package so that it can
acquire and make improvements to the Newell wastewater system without further
delays. Hancock PSD should file an update with the Commission regarding the
status of the grants and loans in its proposed funding package thirty days after the
issuance of this Order.
For the reasons discussed herein, the Commission recommends that the
WVIJDC approve Hancock PSD’s request for grant funding from the Distressed
Utilities Account.
FINDINGS OF FACT
On January 26, 2024, Hancock PSD filed a Petition for Recommendation of
Funding from the Distressed Utilities Account (Petition for Recommendation).
According to Hancock PSD, at the WVIJDC meeting held on December 19,2023,
Hancock PSD was directed to file an application with the United States Department
of Agriculture Rural Development to obtain additional funding to pay the acquisition
price for Newell’s wastewater system? According to Hancock PSD, the funding
package currently proposed to finance the acquisition consists of the following
sources:
- Petition to Reopen r[ 11.
Id. fi 12.
Petition for Recommendation fi 13.
Id. fir[ 12-14.
2
DISCUSSION
To obtain grant funding for $5 million from the Water Development Authority
Distressed Utilities Account, Hancock PSD requested a recommendation from the
Commission in accordance with the plan developed pursuant to W. Va. Code fj 24-
2H-1 et seq. W. Va. Code § 24-2H-8(e) provides, in part, that “[a] nonprofit
acquiring public utility may seek grant funding from the Distressed Utilities Account
established pursuant to § 31-15A-9(i) of this code to repair, maintain, and replace
the distressed water and wastewater utilities as needed.”
Pursuant to W. Va. Code § 31-15A-9(i),
The Water Development Authority shall establish a separate restricted
account within the infrastructure fund to be expended for the repair
and improvement of failing water and wastewater systems by
nonprofit public utilities from grants approved by the council and
supported by recommendations from the Public Service Commission
in accordance with the plan developed under 924-2H-I et seq. of this
code. The restricted account shall be known as the Distressed Utilities
Account. Annually, the council may request the Water Development
Authority to transfer from the uncommitted loan balances for each
year a total amount not to exceed $5 million to the restricted account
to fund the grants approved by the council during that fiscal year.
Notwithstanding the provisions of $31-15A-1 O(b) of this code, the
council may approve grants from this account for up to 100 percent of
the cost of failing utility repairs, replacements and improvements and
such grant along with other grants awarded by the council may
exceed 50 percent of the total project cost: Provided, That at no time
may the balance of the restricted account exceed $5 million.
This matter has been pending before the Commission since December of
2020, when Newell requested that the Commission determine whether it was a
3
distressed or failing utility under W. Va. Code § 24-2H-6(a). It has been over a year
since the Commission directed Hancock PSD to pursue the grant funding for the
acquisition of Newell’s wastewater system.6 The Commission understands that
applying for and obtaining grant funding, especially in the amount needed by
Hancock PSD to acquire the system and make repairs, takes time. However, the
Commission found that Newell was a failing utility nearly two years ago and we
have concerns about the quality and reliability of services Newell’s wastewater
customers are currently re~eiving.~
Hancock PSD has represented to the Commission that a $5 million grant
from the Distressed Utilities Account is “critical and necessary” to its funding
package? The Commission encourages Hancock PSD to continue its efforts to
secure the grants and loans listed in its proposed funding package so that it can
acquire and make improvements to the Newell wastewater system without further
delays. Hancock PSD should file an update with the Commission regarding the
status of the grants and loans in its proposed funding package thirty days after the
issuance of this Order.
For the reasons discussed herein, the Commission recommends that the
WVIJDC approve Hancock PSD’s request for grant funding from the Distressed
Utilities Account.
FINDINGS OF FACT
On January 26, 2024, Hancock PSD filed a Petition for Recommendation of
Funding from the Distressed Utilities Account (Petition for Recommendation).
According to Hancock PSD, at the WVIJDC meeting held on December 19,2023,
Hancock PSD was directed to file an application with the United States Department
of Agriculture Rural Development to obtain additional funding to pay the acquisition
price for Newell’s wastewater system? According to Hancock PSD, the funding
package currently proposed to finance the acquisition consists of the following
sources:
- Petition to Reopen r[ 11.
Id. fi 12.
Petition for Recommendation fi 13.
Id. fir[ 12-14.
2
DISCUSSION
To obtain grant funding for $5 million from the Water Development Authority
Distressed Utilities Account, Hancock PSD requested a recommendation from the
Commission in accordance with the plan developed pursuant to W. Va. Code fj 24-
2H-1 et seq. W. Va. Code § 24-2H-8(e) provides, in part, that “[a] nonprofit
acquiring public utility may seek grant funding from the Distressed Utilities Account
established pursuant to § 31-15A-9(i) of this code to repair, maintain, and replace
the distressed water and wastewater utilities as needed.”
Pursuant to W. Va. Code § 31-15A-9(i),
The Water Development Authority shall establish a separate restricted
account within the infrastructure fund to be expended for the repair
and improvement of failing water and wastewater systems by
nonprofit public utilities from grants approved by the council and
supported by recommendations from the Public Service Commission
in accordance with the plan developed under 924-2H-I et seq. of this
code. The restricted account shall be known as the Distressed Utilities
Account. Annually, the council may request the Water Development
Authority to transfer from the uncommitted loan balances for each
year a total amount not to exceed $5 million to the restricted account
to fund the grants approved by the council during that fiscal year.
Notwithstanding the provisions of $31-15A-1 O(b) of this code, the
council may approve grants from this account for up to 100 percent of
the cost of failing utility repairs, replacements and improvements and
such grant along with other grants awarded by the council may
exceed 50 percent of the total project cost: Provided, That at no time
may the balance of the restricted account exceed $5 million.
This matter has been pending before the Commission since December of
2020, when Newell requested that the Commission determine whether it was a
3
distressed or failing utility under W. Va. Code § 24-2H-6(a). It has been over a year
since the Commission directed Hancock PSD to pursue the grant funding for the
acquisition of Newell’s wastewater system.6 The Commission understands that
applying for and obtaining grant funding, especially in the amount needed by
Hancock PSD to acquire the system and make repairs, takes time. However, the
Commission found that Newell was a failing utility nearly two years ago and we
have concerns about the quality and reliability of services Newell’s wastewater
customers are currently re~eiving.~
Hancock PSD has represented to the Commission that a $5 million grant
from the Distressed Utilities Account is “critical and necessary” to its funding
package? The Commission encourages Hancock PSD to continue its efforts to
secure the grants and loans listed in its proposed funding package so that it can
acquire and make improvements to the Newell wastewater system without further
delays. Hancock PSD should file an update with the Commission regarding the
status of the grants and loans in its proposed funding package thirty days after the
issuance of this Order.
For the reasons discussed herein, the Commission recommends that the
WVIJDC approve Hancock PSD’s request for grant funding from the Distressed
Utilities Account.
FINDINGS OF FACT
- The funding package currently proposed by Hancock PSD to finance
the acquisition, repairs, and upgrades to the Newell wastewater system consists
of several grants and loans in the amount of $1 5,449,014 including $5 million from
the Distressed Utilities Account. - Hancock PSD represented to the Commission that $5 million from the
Distressed Utilities Account is a “critical and necessary part” of its funding package.
CONCLUSIONS OF LAW - Because Hancock PSD is a nonprofit public utility seeking to acquire
a failed utility, it may seek grant funding from the Distressed Utilities Account to
repair, maintain, and replace the distressed water and wastewater u
On January 26, 2024, Hancock PSD filed a Petition for Recommendation of
Funding from the Distressed Utilities Account (Petition for Recommendation).
According to Hancock PSD, at the WVIJDC meeting held on December 19,2023,
Hancock PSD was directed to file an application with the United States Department
of Agriculture Rural Development to obtain additional funding to pay the acquisition
price for Newell’s wastewater system? According to Hancock PSD, the funding
package currently proposed to finance the acquisition consists of the following
sources:
- Petition to Reopen r[ 11.
Id. fi 12.
Petition for Recommendation fi 13.
Id. fir[ 12-14.
2
DISCUSSION
To obtain grant funding for $5 million from the Water Development Authority
Distressed Utilities Account, Hancock PSD requested a recommendation from the
Commission in accordance with the plan developed pursuant to W. Va. Code fj 24-
2H-1 et seq. W. Va. Code § 24-2H-8(e) provides, in part, that “[a] nonprofit
acquiring public utility may seek grant funding from the Distressed Utilities Account
established pursuant to § 31-15A-9(i) of this code to repair, maintain, and replace
the distressed water and wastewater utilities as needed.”
Pursuant to W. Va. Code § 31-15A-9(i),
The Water Development Authority shall establish a separate restricted
account within the infrastructure fund to be expended for the repair
and improvement of failing water and wastewater systems by
nonprofit public utilities from grants approved by the council and
supported by recommendations from the Public Service Commission
in accordance with the plan developed under 924-2H-I et seq. of this
code. The restricted account shall be known as the Distressed Utilities
Account. Annually, the council may request the Water Development
Authority to transfer from the uncommitted loan balances for each
year a total amount not to exceed $5 million to the restricted account
to fund the grants approved by the council during that fiscal year.
Notwithstanding the provisions of $31-15A-1 O(b) of this code, the
council may approve grants from this account for up to 100 percent of
the cost of failing utility repairs, replacements and improvements and
such grant along with other grants awarded by the council may
exceed 50 percent of the total project cost: Provided, That at no time
may the balance of the restricted account exceed $5 million.
This matter has been pending before the Commission since December of
2020, when Newell requested that the Commission determine whether it was a
3
distressed or failing utility under W. Va. Code § 24-2H-6(a). It has been over a year
since the Commission directed Hancock PSD to pursue the grant funding for the
acquisition of Newell’s wastewater system.6 The Commission understands that
applying for and obtaining grant funding, especially in the amount needed by
Hancock PSD to acquire the system and make repairs, takes time. However, the
Commission found that Newell was a failing utility nearly two years ago and we
have concerns about the quality and reliability of services Newell’s wastewater
customers are currently re~eiving.~
Hancock PSD has represented to the Commission that a $5 million grant
from the Distressed Utilities Account is “critical and necessary” to its funding
package? The Commission encourages Hancock PSD to continue its efforts to
secure the grants and loans listed in its proposed funding package so that it can
acquire and make improvements to the Newell wastewater system without further
delays. Hancock PSD should file an update with the Commission regarding the
status of the grants and loans in its proposed funding package thirty days after the
issuance of this Order.
For the reasons discussed herein, the Commission recommends that the
WVIJDC approve Hancock PSD’s request for grant funding from the Distressed
Utilities Account.
FINDINGS OF FACT
- The funding package currently proposed by Hancock PSD to finance
the acquisition, repairs, and upgrades to the Newell wastewater system consists
of several grants and loans in the amount of $1 5,449,014 including $5 million from
the Distressed Utilities Account. - Hancock PSD represented to the Commission that $5 million from the
Distressed Utilities Account is a “critical and necessary part” of its funding package.
CONCLUSIONS OF LAW - Because Hancock PSD is a nonprofit public utility seeking to acquire
a failed utility, it may seek grant funding from the Distressed Utilities Account to
repair, maintain, and replace the distressed water and wastewater u
