In the last rate case, Advocates for a Safe Water System revealed that West Virginia American Water is able to turn a profit on some types of repairs in response to a leak, which begs the question: Is West Virginia American Water going to make a profit from the East End main break?
What we do know is that this main break is just the latest example of West Virginia American Water’s unwillingness to prioritize the needs of ratepayers over the interests of its out-of-state parent company.
In the 49th poorest state in the nation, we pay the 3rd highest rates of the 500 largest water systems. And while we recover from this latest system failure and stare down the water company’s next rate hike request, we see few improvements to our system on the horizon.
The events of the last two years have made it clear what our water system needs: an increased rate of main replacement to avoid major main breaks like the East End flood, sufficient water monitoring equipment to detect future spills, and a secondary water source in case of another water crisis. The water company is failing to address each of these needs in a meaningful way.
From a recent article published in the Charleston Gazette-Mail, we know the company has its own priorities in mind. If the water company’s newest rate hike request is granted, it intends to spend roughly $20 million on a pipe from Weston to Webster Springs to address the problem of the aging Webster Spring’s treatment plant–but with no analysis to show this is a cheaper, better solution for ratepayers. Meanwhile, the company itself would make money on this project, turning a 9.75% profit on the infrastructure initiative.
These rate case outcomes would be consistent with the troubling outcomes of the last rate hike, when the company was given the go-ahead to prioritize spending on new meters (rather than investing meaningful in main repair) and to send millions of our ratepayer dollars out of state to shareholders.
Instead of learning lessons from the events of the last two years or taking seriously the needs of its customers, the water company is failing us. The East End Main break is just the latest symptom of this larger problem.
We deserve a water system that works for us, where safety, reliability and affordability are prioritized. We deserve a public water system.
Will the WV Water Company Turn a Profit on the East End Main Break?
