Public Service Commission Of West Virginia
Public Service Commissionof West Virginia2019 Management Summary Reportand the Electric and Gas Utilities Supply-DemandForecast Reports for 2020 - 2029January 2020Chairman Charlotte R. LaneCommissioner Renee A. LarrickCommissioner Brooks F. McCabe, Jr.201 Brooks StreetP.O. Box 812Charleston, West Virginia 253231-800-344-5113www.psc.state.wv.us
A digital copy of this report can be found atwww.psc.state.wv.us/Mgmt Sum/MSR2019 Report.pdf
Public Service Commissionof West Virginia201 Brooks Street, P.O. Box 812Charleston, West Virginia 25323Charlotte R. LaneChairmanJanuary 8, 2020To:The Honorable James C. Justice, II, Governor of West Virginia, andDistinguished Members of the 84th West Virginia Legislature:It is our pleasure to submit to you the 2019 Management Summary Reportand the Electric and Natural Gas Utilities Supply-Demand Forecasts for 20202029. This report details how the Commission continues to meet its missionto ensure fair and prompt regulation of public utilities; provide for adequate,economical and reliable utility services throughout the state; and appraise andbalance the interests of current and future utility service customers with theinterests of the utilities and the general interest of the state’s economy.In 2019, the Commission adjudicated nearly 2,200 formal cases, many ofwhich generated significant public attention and ranged from complex major ratecases and applications for multi-billion dollar projects to simple complaint cases.The Commission also processed nearly 8,400 informal cases last year, includingcomplaints about inadequate service, payment issues, service restoration andbilling problems. Commission Staff negotiated solutions, resolved communicationproblems or acted as a liaison between utilities and customers to mediatedifferences. Then, if their problem is not resolved, customers are assisted in filinga formal complaint with the Commission. Commission Staff was successfulin resolving over 97% of these complaints at the informal level; 96.3% wereresolved within 30 days, saving time and money for the utilities, customers and theCommission.Last year the Commission hosted several training sessions sponsoredby PJM, the regional transmission organization. Those sessions covered topicsincluding Transmission Planning, Cyber Security and Resilience and were opento representatives of electric utility companies, attorneys who practice before theCommission, Governor’s Office and West Virginia Legislative staff as well asCommission Staff.The Commission also hosted a meeting of the Mid-Atlantic Conference ofRegulatory Utilities Commissioners (MACRUC) in Charleston.
In a move that was enthusiastically received by many utility companies,the Commission increased the threshold of gross annual revenues from 1 millionto 3 million for utilities to be able to file a 19A rate case. These cases are anaccelerated and simplified procedure for smaller utilities to file for increased rateswithout being required to develop their own financial exhibits and rate requests.This process saves the utility the time and expense of preparing and filing a fullrate case.The Public Service Commission experienced a great deal of internal changein 2019, welcoming a new Commissioner and Chairman and new Directors of theLegal, Executive Secretary and Quality Assurance Divisions.Some of the issues the Commission will be addressing in the coming yearinclude continuing to address infrastructure needs and affordable rates in the faceof declining customer bases and sales, more closely monitoring PJM and theFederal Energy Regulatory Commission (FERC) activities with carbon pricingand value capacity pricing in the PJM market, finding ways to increase electricitydemand to assist in economic development, the possible abandonment of farmtap customers by natural gas utility companies, continuing to assist Public ServiceDistricts (PSD) and small municipal systems moving toward the consolidationof challenged systems; implementation of middle-mile broadband infrastructureexpansion and action on the Frontier Focused Management Audit.We hope you find this report informative and we look forward to continuingto work with you to serve the needs of West Virginia.Respectfully submitted,Charlotte R. LaneChairmanRenee A. LarrickCommissionerBrooks F. McCabe, Jr.Commissioner
2019 Management Summary ReportTable of ContentsMeet the Commissioners.4What the Public Service Commission Regulates.62019 Performance Accomplishments and Statistics .72019 Significant Proceedings Electricity.9Natural Gas .16Gas Pipeline Safety .21Water and Wastewater .24Telecommunications .35Transportation Safety Enforcement .38Motor Carriers .40Solid Waste Facilities/Landfills .42Rulemaking Proceedings.42The Courts.44Informal Complaints.47Appendix A: Table of Abbreviations. 48Appendix B: PSC Organization and Functions.50Appendix C: Budget and Human Resources.56Appendix D: Comparison of Change in Residential Utility Rates. 57Appendix E: Electric Generating Capacity by Fuel Source. 59Appendix F: Electric Utilities Supply – Demand Forecast . 60Appendix G: Natural Gas Utilities Supply – Demand Forecast . 68Appendix H: Utility Discount Program. 71Appendix I: Tel-Assistance Service Telephone Rate Discount Program. 763
Public Service Commission of West VirginiaMeet the CommissionersChairman Charlotte R. LaneCharlotte R. Lane was appointed to the Public ServiceCommission and as Chairman on July 1, 2019. She previouslyserved on the Commission from 1985-1989 and 1997-2003,serving as Chairman from 1997-2001.She has had a long career of public service in addition to her priorwork on the Commission, having been elected to three terms inthe West Virginia House of Delegates (1979-1980, 1991-1992and 2017-2018) and serving on the U.S. International TradeCommission from 2003-2011, appointed by President GeorgeW. Bush. She has practiced law in State and Federal Courts inWest Virginia for many years and has been admitted to practicein the Third and Fourth Circuit Courts of Appeals and theSupreme Court of the United States.Chairman Lane has served as President of the West Virginia Bar Association, MACRUCand the Charleston Rotary Club. She has also served on the Boards of Directors of theRotary Foundation of Washington, D.C.; the National Association of Regulatory UtilityCommissioners (NARUC); the Charleston Chamber of Commerce; the Board of Governorsof the West Virginia State Bar and as a member of the West Virginia University College ofLaw Visiting Committee.Chairman Lane graduated from Marshall University with a Bachelor of Arts in Journalismand Political Science and received her Doctorate of Jurisprudence from the West VirginiaUniversity College of Law. She has been awarded the Justitia Officium Award from theWVU College of Law, the Distinguished Alumnus Award from Marshall University and isa Fellow of the American Bar Foundation and the West Virginia Bar Foundation. She currently resides in Charleston. She has a daughter, son-in-law and two grandchildren livingin South Carolina.Commissioner Renee A. LarrickRenee A. Larrick was appointed to the Commission in July 2017 toa full term ending June 30, 2023. She is a member of the NARUCWater Committee and of MACRUC.Prior to joining the Commission, she served as the Business Managerfor a private law firm in Beckley, West Virginia. She has also taughton the college and high school levels in Raleigh County.4
2019 Management Summary ReportCommissioner Larrick has served on the Board of Directors of the United Way of SouthernWest Virginia and is the past President of the Raleigh County Garden Council, the Woodcliff Garden Club and the Black Knight Country Club Ladies Golf Association.Commissioner Larrick is a graduate of Woodrow Wilson High School in Beckley and theUniversity of Kentucky, where she earned a Bachelor’s degree in Business and Economicswith a concentration in Finance. She and her husband live in Daniels, West Virginia.Commissioner Brooks F. McCabe, Jr.Brooks F. McCabe, Jr. was appointed to the Commission inNovember 2014 to fill an unexpired term and was reappointed toa full term ending June 30, 2021. He currently serves as Presidentof MACRUC.Prior to joining the Commission, he served as a State Senatorrepresenting Kanawha County from 1998-2014, and served onthe Finance, Economic Development, Pensions, Banking andInsurance, Natural Resources and Transportation and InfrastructureCommittees. His 40 years in business have focused on commercialreal estate with a concentration in downtown redevelopmentthrough West Virginia Commercial, LLC and similar business ventures.Commissioner McCabe has served on the boards of the Charleston Renaissance Corporation,Chemical Alliance Zone, The Nature Conservancy’s West Virginia Chapter, CharlestonArea Medical Center, West Virginia State College Foundation, the University of Vermontand the GOW School, a private college preparatory school for dyslexic students.Commissioner McCabe is a graduate of the University of Vermont, where he earned aBachelor of Science in Management Engineering and a Master of Education in EducationAdministration. He received his Doctor of Education degree from West Virginia University,with concentration in Planning and Community Development.His professional designations include the American Institute of Certified Planners andthe REALTORS National Marketing Institute, in which he is a Certified CommercialInvestment Member. He and his wife reside in Charleston and have one daughter and twograndchildren.5
Public Service Commission of West VirginiaWhat the Public Service Commission Regulates1.Electric utilities2.Natural gas utilities3.Landline services of telephone utilities4.Certification of independent power producers or non-utility electric wholesalegeneration facilities in West Virginia, including wind, natural gas, landfill gas or othermethane sources, solar, water, coal, renewable fuels and waste fuels5.Gas and hazardous liquid intrastate transmission, regulated gathering and gasdistribution6.Private and publicly owned water and sewer utilities (limited jurisdiction over ratesof municipal and larger public service district water and sewer utilities)7.Intrastate solid waste carriers8.Commercial solid waste facilities (landfills)9.Allocation of Energy Intensive Industrial Consumers Revitalization Tax Credits10.Some motor carrier operations, including economic regulation of intrastatetransportation of passengers (taxis and limousines) and towing services not arranged by theowner of a towed vehicle (third-party tows)11.Safety, weight and speed limit enforcement of all commercial motor vehicles (privatefleet and common carrier vehicles) operating in the state, including motor carriers involvedin interstate commerce, with emphasis on high accident areas12.Transportation of hazardous materials, including identification, registration andpermitting of commercial motor vehicles transporting such materials in and through thestate13.The Coal Resource Transportation System (CRTS)14.Administration and enforcement of Federal and State railroad safety regulations6
2019 Management Summary Report2019 Key Performance Accomplishment & StatisticsOrders Issued 5,005Orders General Orders 11Commission Hearings 25Administrative Law Judge Hearings78HearingsHearings Held Outside Charleston60Public Comment Hearings 25Cases in Mediation Process46MediationMediation Meetings 41Program Cases Successfully Mediated 34CasesFormal Cases Processed 2,183Consumer Questions & Inquiries Processed2,841Informal Complaint Cases 8,392Assistance to Water and Wastewater Utilities1,012Utility Audits Conducted 89Utility Annual Report Reviews Performed1,650WVIJDC Reviews Performed587
Public Service Commission of West VirginiaWater and Wastewater Seminars11Gas Pipeline Safety Seminars2Seminars andTransportation Safety Seminars*11PresentationsPeople Trained at Seminars 710Students Reached through Conservation Efforts 1,205Presentations to Outside Organizations 37CRTS Transactions Monitored 1,914,342CRTS Site Inspections 725Complaints to CRTS Hotline Investigated106Highway Accidents Attributed to Overweight Coal Trucks ZeroSafety Trucks Inspected* 19,889Buses Inspected* 573Collected for DOH Transportation Fund 2.3 millionRail Cars and Locomotives Inspected14,304RailroadDefective Rail Cars Identified2,134Safety Miles Railroad Tracks Inspected3,066Highway Rail-Grade Crossings Inspected 493Gas PipelineGPS Inspections PerformedSafety GPS Inspection Days* Calculated by fiscal year8178516
2019 Management Summary Report2019 Significant ProceedingsElectricityGeneration CasesBlack Rock Wind Force, LLC Application for a Siting CertificateBlack Rock Wind Force, LLC filed an application for a siting certificate for the constructionand operation of a wholesale electric generating facility and other necessary appurtenancesin Grant and Mineral Counties (Case No. 19-0483-E-CS). The project will consist of upto 29 wind turbines, each with a nameplate capacity between 3.6 megawatts (MW) and 5.8MW. The project, which will include access roads, an operation and maintenance facility,a new substation, an underground electrical collection system and a 138kV transmissionline, is estimated to provide up to 376 new jobs during the construction phase and costbetween 146 million and 165.6 million to build. The estimated tax revenues are between 4.8 million and 5.9 million during the construction phase, with a combined 346,000 to 384,000 in annual local revenues for Grant and Mineral Counties. Intervenors included theWest Virginia State Building and Construction Trades Council, AFL-CIO (State Buildingand Trades Council) and two local landowners.The Commission conducted an extensive tour of the project area with representatives ofStaff, Black Rock and the State Building and Trades Council and held a public commenthearing at the Grant County Courthouse in Petersburg.The Commission granted Black Rock’s application, subject to certain conditions. This caseis now closed.Longview’s Application for New Siting CertificatesLongview Power II, LLC (Longview II) and Longview Renewable Power, LLC (LongviewRenewable) filed a Joint Petition to authorize the construction and operation of twowholesale electric generating facilities and one high-voltage electric transmission line inMonongalia County (Case No. 19-0890-E-CS-CN). Longview II plans to build a 1,200MW natural gas-fired electric combined cycle gas turbine generating facility, a 70 MWutility scale solar facility and an associated high-voltage transmission line to be located inWest Virginia and Pennsylvania.The construction costs are estimated to be 956 million. Both projects will be located onthe site of the existing Longview coal-fired facility.Intervenors include the State Building and Trades Council and the Sierra Club. This caseis pending before the Commission.9
Public Service Commission of West VirginiaLongview Power Application for a Waiver of Material ModificationLongview Power, LLC filed a petition seeking a waiver of the Commission’s materialmodification requirements or, in the alternative, modification of the citing certificategranted in Case Nos. 03-1860-E-CS-CN and 05-1467-E-CN (Case No. 19-0770-E-CS-PC).Longview planned to construct a pipeline to transport its finished water to a discharge pointin the Monongahela River at Maidsville Landing.Longview owns the necessary land and rights-of-way to construct the new pipeline.Longview was also seeking a modification to the West Virginia National Pollutant DischargeElimination System permit to allow for the discharge. The Commission granted Longview’swaiver request. This case is now closed.Base Rate and Cost Recovery CasesAPCo and WPCo Base Rate and Depreciation Rate CasesAppalachian Power Company and Wheeling Power Company (APCo/WPCo) requested toincrease their base rates by approximately 114.6 million, or 7.85% and to increase theirdepreciation expenses by 31.3 million annually (Case Nos. 18-0646-E-42T and 18-0645E-D). Intervenors included the Commission’s Consumer Advocate Division (CAD); WestVirginia Energy Users Group (WVEUG); Steel of West Virginia (SWVA); The KrogerCompany; Wal-Mart, Inc.; the City of Charleston and the Kanawha County & CitiesAssociation.CAD recommended a 13.8 million decrease of base rates with a return on equity of 8.75%or a decrease of 450,008 with a return on equity of 9.25%. Staff recommended a revenueincrease of 2.27 million, or 0.16% and a return on equity of 9.25%. Staff also recommendedchanges to correct an under-payment by low usage customers and over-payment by highusage customers such as winter heating customers. The Commission held public commenthearings in Princeton, Beckley, Wheeling, Huntington and Charleston.The Companies, CAD, WVEUG, Kroger, Wal-Mart, the City of Charleston, the KanawhaCounty & Cities Association and Staff filed a Joint Stipulation and Agreement forSettlement, agreeing that base rates should be increased by approximately 44.2 million,using a return on equity of 9.75% and an overall rate of return of 7.28%; the allocation ofthe costs between the rate classes should be adjusted to reduce the subsidies provided bycertain classes; and, barring financial distress, the Companies would not file another baserate application before April 1, 2020. In February 2019, the Commission approved theJoint Stipulation and closed the case.APCo and WPCo 2018 ENECAPCo/WPCo filed a petition to initiate the annual review of their Expanded Net Energy Cost10
2019 Management Summary Report(ENEC) rates (Case No. 18-0503-E-ENEC). The ENEC rate review is a narrow specialpurpose rate proceeding for electric utilities that allows recovery of certain prudentlyincurred costs for fuel, purchased power, purchased transmission costs and constructioncosts for specific projects. The Companies stated the ENEC deferral balance was underrecovered by approximately 91.3 million through 2017, and the Construction Surchargebalance was projected to under-recover by approximately 3.3 million during the forecastperiod of July 1, 2018 through June 30, 2019. In order to address the under-recovery balance,the Companies proposed either to offset the under-recovery balance with an equal amountof unprotected excess accumulated deferred income taxes resulting from the 2017 Tax Cutsand Jobs Act (TCJA) and to keep existing ENEC rates in effect for the forecast period, orto increase the ENEC rates to recover an additional 91.3 million in annual revenues andincrease the Construction Surcharge rates to recover an additional 3.3 million in annualrevenues. Inter
University College of Law. She has been awarded the Justitia Officium Award from the WVU College of Law, the Distinguished Alumnus Award from Marshall University and is a Fellow of the American Bar Foundation and the West Virginia Bar Foundation. She cur-rently resides in Charleston. She has a daughter, son-in-law and two grandchildren living
112. Establishment of Commission for Conciliation, Mediation and Arbitration 113. Independence of Commission 114. Area of jurisdiction and offices of Commission 115. Functions of Commission 116. Governing body of Commission 117. Commissioners of Commission 118. Director of Commission 119. Acting director of Commission 120. Staff of Commission 121.
112. Establishment of Commission for Conciliation, Mediation and Arbitration 113. Independence of Commission 114. Area of jurisdiction and offices of Commission 115. Functions of Commission 116. Governing body of Commission 117. Commissioners of Commission 118. Director of Commission 119. Acting director of Commission 120. Staff of Commission 121.
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BEFORE THE PUBLIC SERVICE COMMISSION . 240-20.015, 4 CSR 240-20.030, and 4 CSR 240-4.017, to seek approval from the Missouri Public Service Commission (“Commission”) of its proposed plan to .
2001. Amended by the County Commission of Upshur County, West Virginia on the 16th day of March 2006. Reviewed and approved by the County Commission of Upshur County, West Virginia on the 26th day of February 2009. Amended by the County Commission of Upshur County, West Virginia on the 18th day of June 2015. Amended by County
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