(The order issued by the West Virginia Public Service Commission Sept 19, 2025 follows. It calls for the Tomlinson PSD to use staff recommended interim rates for resale rates to New Cumberland.)
PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
At a session of the PUBLIC SERVICE COMMISSION OF WEST VIRGINIA
in the City of Charleston on the 19 th day of September 2025.
CASE NO. 25-0635-PWD-30B
TOMLINSON PUBLIC SERVICE DISTRICT
Rule 30B application to pass through increased water costs from
the City of New Cumberland to the District’s Water Customers.
COMMISSION ORDER
The Commission (i) approves the Staff Recommended Rates for use on an
interim basis subject to refund, for all service rendered on and after the date of this Order, (ii) requires public notice, and (iii) orders certain requirements
concerning the Cash Working Capital Reserve (CWCR).
BACKGROUND
On July 18, 2025, the Tomlinson Public Service District (District) filed,
pursuant to Rule 14.1 (historical Rule 30B) of the Rules for the Construction and Filing of Tariffs, 150 C.S.R. 2. (Tariff Rules), an application to pass through the
increased purchased water rate of the City of New Cumberland (New
Cumberland).
On August 4, 2025, New Cumberland adopted an ordinance increasing its
water resale rate from $3.05 per thousand gallons to $3.55 per thousand. This ordinance increased water resale rates and charges by $0.50 per thousand gallons or 16.4% over previous rates. The rate ordinance was adopted on August 4, 2025 to be effective 45 days after enactment, or September 18, 2025.
On August 19, 2025, Staff filed an Initial and Final Joint Staff
Memorandum. Staff recommended that the Commission approve the Staff
Recommended Rates on an interim basis subject to refund. Staff further
recommended that the District give notice of the Staff Recommended Rates and if there is no timely protest after the District provides notice that the Commission issue an order adopting the interim rates as final rates for the District.
Staff also recommended that the District comply with the accounting, cash
depositing, use, and reporting requirements related to CWCR funds as required by General Order No. 183.11.
DISCUSSION
2
Tariff Rule 14.1 permits a water utility to employ an accelerated rate
procedure for changing rates because of changes in costs of purchased water.
Pursuant to Tariff Rule 14.1.4, the Commission may issue an order allowing
amended tariff sheets to go into effect immediately, on an interim basis, subject to refund, on the condition that the utility publishes notice. If the Commission finds, upon further review, that the interim rates are not justified, refunds will be ordered.
The Commission agrees that the Staff Recommended Rates should be
approved on an interim basis, subject to refund, to be effective on all bills
rendered on and after the date of this Order.
The Commission also agrees that the District should comply with the
accounting, cash depositing, use and reporting requirements related to CWCR funds as required by General Order No. 183.11. Since it has been over ten years since General order 183.11 was issued, the Commission will herein repeat the history of the CWCR and the accounting and reporting requirements thereto required by the Commission.
The CWCR is a statutory requirement. Effective June 12, 2015, the
Legislature passed SB 234 which amended W.Va. Code §24-1-1 by the addition
of subsection (k) that provides:
(k) The Legislature further finds that an adequate cash working capital
fund is essential to allow water and sewer utilities that are political
subdivisions of the state to deliver continuous and compliant service.
Therefore, these utilities shall maintain a working capital reserve in
an amount of no less than one eighth of actual annual operation and
maintenance expense. This reserve shall be separate and distinct
from and in addition to any repair and replacement fund that may
be required by bond covenants. (Emphasis added).
To explain the CWCR percentages, the expected accumulation of CWCR
funds that were likely to exceed the minimum statutory requirement, and the
billing, collection, accounting, and use of CWCR funds the Commission stated in General Order 183.11:
The Commission is aware that a utility that experiences little or no
extraordinary or non-recurring need to expend CWCR funds could
accumulate CWCR funds well in excess of the minimum SB 234
requirement. We are also aware that if there is an extended period
without a need to fund, extraordinary and non-recurring costs, utility
management may be tempted to use accumulated CWCR funds for
on-going operation and maintenance and capital expenditures in lieu of increasing rates to cover such expenses. The Commission will not
condone the use of accumulated CWCR funds intended for
extraordinary and non-recurring expenditures for on-going, normal
operating and capital expenditures. The Commission will, therefore,
establish safeguards and reporting requirements to preserve and
facilitate regular review of the accumulated CWCR funds. The
Commission will require that each utility with a SB 234 CWCR
increment to segregate related cash collections into a separate and
distinct cash working capital requirement bank account (CWCR
Account).
Each utility should use funds accumulated in its CWCR Account only
for, extraordinary or non-recurring expenditures that would not be
included in normal, on-going O&M or capital expenses. The utility
shall maintain accounting records for the CWCR Account that clearly
identify deposits and disbursements from the CWCR Account as to
source and purpose. To simplify the recordkeeping associated with
the CWCR increment and CWCR Account, the utility shall determine a
percentage of total revenue that is currently represented by its CWCR
increment (the CWCR percentage to tariff revenue). (If a utility needs
guidance in establishing this percentage it should contact the
Commission’s Water and Wastewater Division.) Each month, the
utility shall apply that percentage to total monthly tariff billings and
credit Account 265 – Miscellaneous Operating Reserves (instead of
revenue accounts). Likewise, the utility shall apply that percentage to
total monthly tariff collections and charge that amount to
Account 127 – Other Special Funds (instead of cash), and deposit that
amount into the separate CWCR Account. In future rate proceedings,
Commission Staff will advise the Commission and the utility of the
appropriate on-going CWCR percentage to total revenue. 1
With that explanation, the Commission then issued specific orders with
regard to CWCR funds.
IT IS THEREFORE ORDERED that the revenue requirements in all
rate cases of utilities subject to our rate jurisdiction that require
consideration of W.Va. Code §24-1-l(k) include a CWCR increment
that is equal to an unadjusted one-eighth of the normal going-level
O&M expenses as determined in each rate case.
IT IS FURTHER ORDERED that each utility for which the Commission
establishes a SB 234 CWCR increment shall regularly deposit related
cash collections into a separate and distinct bank account (CWCR
Account) on a monthly basis, as described herein.
1 G.O. 183.11, February 24, 2020 at p. 4
4
IT IS FURTHER ORDERED that utilities shall maintain accounting
records for the CWCR Account so that deposits and disbursements
from the CWCR Account are clearly identified as to source and
purpose. Each month the utility shall apply the CWCR increment
percentage to total monthly tariff billings and credit Account 265 –
Miscellaneous Operating Reserves (instead of revenue accounts).
Likewise, a utility shall apply that percentage to total monthly tariff
collections, charge [debit] that amount to Account 127 – Other Special
Funds (instead of cash), and deposit that amount into the separate
CWCR Account. 2
The Commission will adopt the Staff recommendation and order the
District to comply with its obligations to account for the CWCR billing and
collections as described in General Order 183.11.
FINDINGS OF FACT
- On July 18, 2025, the District filed a request to increase its water
rates and charges, pursuant to Tariff Rule 14.1. 3 - Staff recommended rates, on an interim basis, to reflect the
increased purchased water rate provided by New Cumberland to the District. 4 - Staff further recommended the District comply with the accounting,
cash depositing, use and reporting requirements related to CWCR monies as required by General Order No. 183.11 and discussed herein. 5
CONCLUSIONS OF LAW - Tariff Rule 14.1.4 permits the Commission to order interim rates,
subject to refund, to take effect immediately. If the Commission finds, upon further review, that the interim rates are not justified, refunds will be ordered. - The Commission should approve the Initial Staff Recommended
Rates with additional explanation of the accounting for CWCR funds included in the tariff as modified by the Commission and attached to this Order as Attachment A and require notice.
2 Id. at p. 7
3 Application, July 18, 2025.
4 Initial and Final Joint Staff Memorandum, August 19, 2025.
5 Id.
5
- The Commission should require the District to comply with the
accounting, cash depositing, use and reporting requirements related to CWCR monies as required by General Order No. 183.11 and discussed herein.
ORDER
IT IS THEREFORE ORDERED that the Staff Recommended Rates, with
additional explanations of the accounting for CWCR funds included in the tariff, as modified by the Commission, and attached to this Order as Attachment A, are approved for use by Tomlinson Public Service District, on an interim basis, for all service rendered on and after the date of this order.
IT IS FURTHER ORDERED that the interim rates approved herein are
subject to refund. If the Commission finds, upon further review, that the interim rates are not justified, refunds will be ordered.
IT IS FURTHER ORDERED that Tomlinson Public Service District shall, as
soon as possible, publish the Notice of Filing, attached as Attachment B, as a
Class I legal publication in a newspaper published and of general circulation in
the county or counties where its customers reside.
IT IS FURTHER ORDERED that Tomlinson Public Service District file a
statement from an authorized representative stating when and in what
publications the notice was published along with a legible photo-copy of the
published notice within three days of the publication date(s).
IT IS FURTHER ORDERED that within thirty days of the date of this Order,
Tomlinson Public Service District shall file with the Commission an original and six copies of a revised tariff setting forth the new rates and charges.
IT IS FURTHER ORDERED that while the rates authorized herein are in
effect, Tomlinson Public Service District shall apply 6.78% to total monthly
billings of sales services, late fees, and the CWCR increment and immediately
record that amount at the time of the billings as a credit to Account 265
(Miscellaneous Operating Reserves) instead of a revenue account.
IT IS FURTHER ORDERED that Tomlinson Public Service District comply
with the use of CWCR funds limitations as set forth and described in General
Order 183.11.
6
IT IS FURTHER ORDERED that Tomlinson Public Service District
continue to file monthly CWCR reports until the Commission Utilities Division
determines that the District understands and is following the monthly cash
separation, deposit and accounting requirements established by the Commission for the CWCR and authorizes the District to cease filing monthly reports and file a semi-annual report. These monthly or semi-annual reports are in addition to any CWCR schedules contained in the Annual Report.
IT IS FURTHER ORDERED that the Executive Secretary of the
Commission serve a copy of this Order by electronic service on all parties of
record who have filed an e-service agreement, by United States First Class Mail on all parties of record who have not filed an e-service agreement, and on Staff
by hand delivery.
A True Copy, Teste,
Karen Buckley, Executive Secretary
RMM/s
250635c
Attachment A
Page 7 of 2
TOMLINSON PUBLIC SERVICE DISTRICT (Water)
Effective for all service rendered on and after September 19, 2025
(C) APPLICABILITY
Applicable within the entire territory served and the former
customers of The Newell Company.
AVAILABILITY OF SERVICE
Available for general domestic, commercial and industrial water
service.
(I)(C) RATES *(Customers with metered water supply)
First 3,000 gallons used per month $15.18 per 1,000 gallons
Next 3,000 gallons used per month $11.89 per 1,000 gallons
Next 4,000 gallons used per month $10.47 per 1,000 gallons
Next 10,000 gallons used per month $ 9.98 per 1,000 gallons
All Over 20,000 gallons used per month $ 8.73 per 1,000 gallons
(C) MINIMUM CHARGE *
No bill will be rendered for less than the following based on meter
size:
5/8 inch meter $ 43.41 per month
3/4 inch meter $ 65.12 per month
1 inch meter $ 108.53 per month
1 – 1/2 inch meter $ 158.45 per month
2 inch meter $ 217.05 per month
3 inch meter $ 694.56 per month
4 inch meter $1,085.25 per month
6 inch meter $2,170.50 per month
(I) The above minimum charge is subject to an additional $0.71 per 1,000
gallons of water used per month.
TAP FEE
The following charge is to be made whenever the utility installs a
new tap to serve an applicant:
A tap fee of $350.00 will be charged to all customers who apply for
service outside of a certificate proceeding before the Commission for
each new tap to the system.
(C) Indicates a change in text
(I) Indicates an increase
Attachment A
Page 8 of 2
TOMLINSON PUBLIC SERVICE DISTRICT (Water) (continued)
DELAYED PAYMENT PENALTY *
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.
RECONNECTION CHARGE – $25.00
To be charged whenever the supply of water is turned off for
violations of rules, non-payment of bills or fraudulent use of water.
ADMINISTRATIVE FEE
In the event the District collects payment in full of a delinquent water
bill at the customer’s premises, in lieu of a discontinuance of service
for non-payment, an administrative fee of $25.00 shall also be
collected in addition to the delinquent water bill.
RETURNED CHECK CHARGE
A service charge equal to the actual bank fee assessed to the
District, up to a maximum of $25.00 will be imposed upon any
customer whose check for payment of charges is returned by the
bank due to insufficient funds.
(I) LEAK ADJUSTMENT INCREMENT *
$4.24 per 1,000 gallons is to be used when the bill reflects unusual
consumption which can be attributed to eligible leakage on
customer’s side of the meter. This rate shall be applied to all such
consumption above 200% of the customer’s historical average
usage.
SECURITY DEPOSIT
Not to exceed two-twelfths (2/12) of the average annual usage of the
applicant’s specific customer class, or fifty dollars, whichever is
greater. This fee may be changed by applicable statutory provisions.
(D) *6.78% CASH WORKING CAPITAL RESERVE INCREMENT
6.78% of total billings at the indicated rates is required to be
recorded as a credit to Account 265 “Miscellaneous Operating
Reserves,” (instead of revenue accounts). The utility shall apply that
percentage to total monthly tariff collections and charge that amount
to Account 127 “Other Special Funds” (instead of cash), and deposit
that amount into a separate distinct CWCR Bank Account.
(I) Indicates increase
(D) Indicates decrease
Attachment B
PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 25-0635-PWD-30B
TOMLINSON PUBLIC SERVICE DISTRICT
Rule 30B application to pass through increased water costs from
the City of New Cumberland to the District’s Water Customers.
NOTICE OF FILING
NOTICE is hereby given that on August 4, 2024, the City of New
Cumberland (New Cumberland) adopted an ordinance increasing its wholesale
resale rate from $3.05 to $3.55 per 1,000 gallons, an increase of $0.50 per 1,000
gallons, or approximately 16.4%. The rate ordinance is to be effective 45 days
after enactment, or September 18, 2025.
The Tomlinson Public Service District filed for increased rates to recover
the increased cost of purchased water. Commission Staff reviewed the District’s
application and recommended that recovering the New Cumberland increase will
require an increase in the District’s rates of $1.37 per thousand gallons. By
Order issued September 19, 2025, the Commission approved the Staff
Recommended Rates on an interim basis, for all bills issued on and after
September 19, 2025.
The average monthly bill for District customers will be changed as follows over
current rates
$ Increase % Increase
Residential $0.61 1.29%
Commercial $3.27 1.70%
Industrial $8.99 1.99%
Public Authorities $4.71 1.81%
The 30B procedure is designed to provide for a change in rates and charges
in order to produce additional revenue sufficient, but no more than sufficient, to
offset the increased cost for water purchased by the utility. Consequently, protest
should be limited to the reasonableness of the cost offset and the method by
which it is calculated. Anyone desiring to protest or intervene should file a written
protest or notice of intervention within twenty (20) days following the date of this
publication unless such date is modified by Commission order. Failure to timely
intervene can affect your rights to protest any rate increases and to participate in
future proceedings. Requests to intervene must comply with the Commission’s
rules on intervention. All protests and interventions should be addressed to the
Executive Secretary, Public Service Commission of West Virginia, P.O. Box 812,
Charleston, WV 25323.
