West Virginia American Water Files 2018 Infrastructure Replacement Plan and Distribution System Improvement Charge
16 June 2017 - 5:00AM
Business Wire
West Virginia American Water filed an application today with the
Public Service Commission (PSC) of West Virginia seeking approval
of its 2018 infrastructure replacement program and associated
Distribution System Improvement Charge (DSIC). The detailed plan
includes $29.9 million in system-wide upgrades that West Virginia
American Water will make in 2018, including $23.5 million to
replace or upgrade more than 39 miles of water mains, $4 million to
replace service lines and fire hydrants and $2.4 million to replace
and upsize two water storage tanks.
“With this annual infrastructure replacement program in place,
we have been able to expand our capital program and reduce our main
replacement cycle from 400 years to 100 years, replacing
approximately 4,000 feet of pipe per week,” said Brian Bruce,
president of West Virginia American Water. “The accelerated
investment achieved through the DSIC program strengthens our water
system, creates operational efficiencies and reduces costs
long-term for our customers.”
As part of this program, a surcharge is calculated each year
based on capital investments made annually until these investments
are rolled into the company’s rates in a future rate case. If
approved, the plan would increase the current Distribution System
Improvement Charge from 1.09 percent in 2017 to 3.28 percent in
2018, representing an increase of $1.04 per month for the average
residential customer using 3,256 gallons.
“Annual DSIC programs provide transparency to our customers and
allow for up-front regulatory review and approval of our proposed
infrastructure upgrades to confirm that they are in the best
interest of our customers,” Bruce continued. “In turn, our
customers receive increased service reliability from these projects
and pay a small monthly surcharge rather than experiencing higher
rate increases several years later that reflect multiple years of
company investments.”
West Virginia American Water’s current DSIC includes $18 million
in water main replacement projects, $7 million for the construction
of two new 4-million-gallon water storage tanks and $4 million in
service line and fire hydrant replacements in the 2017 calendar
year. In an effort to improve communication about these investments
to customers, West Virginia American Water recently launched its
2017 Infrastructure Upgrade StoryMap – a user-friendly, easily
accessible online map that allows customers to view details about
water main replacement projects and other capital investments as
they are under construction and completed. West Virginia is the
first state within American Water to use an interactive web-based
map to display these types of projects and hopes that by doing so,
customers will be able to see the size and scope of the investments
the company is making across its service area.
West Virginia American Water, a subsidiary of American Water
(NYSE: AWK), is the largest water utility in the state, providing
high quality and reliable water services to approximately 550,000
people. Founded in 1886, American Water is the largest publicly
traded U.S. water and wastewater utility company. The company
employs more than 6,700 dedicated professionals who provide
regulated and market-based drinking water, wastewater and other
related services to an estimated 15 million people in 47 states and
Ontario, Canada. More information can be found at
www.westvirginiaamwater.com.
Connect with us:
Facebook.com/wvamwater ● Twitter.com/wvamwater
● YouTube.com/wvamwater ● Instagram:
@wvamwater
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version on businesswire.com: http://www.businesswire.com/news/home/20170615006168/en/
West Virginia American WaterLaura Martin, External Affairs
ManagerOffice: (304) 340-2089Mobile: (304)
932-7158Laura.Martin@amwater.comwww.westvirginiaamwater.com
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