KEYSER, W.Va. — Keyser water system customers, both in and outside the city limits, face a 30 percent rate increase in coming weeks that could prompt an appeal to the West Virginia Public Service Commission.
On Wednesday, the City Council held the first reading of the amended ordinance to increase rates for all customers, a move it says is necessary to fund the city’s two-part, $11.4-million water system improvement pro-ject.
The issue has sparked controversy between Keyser officials and water customers residing in McCoole and New Creek. The two areas are served as outside customers of the city’s water system.
The first phase of the water project, valued at approximately $4.3 million, includes replacing and relocating the main water tank used to supply the system, and also replacing a water line and expanding water service in the vicinity of Limestone Road.
Allegany County and New Creek customers have acknowledged that the new water tank will benefit their service, but balked at paying any of the costs associated with the Limestone Road portion of the project.
“We both said it wasn’t appropriate for us to pay any portion toward that debt, because that project doesn’t benefit either of our service areas,” said Mark Yoder, utilities division chief of the Allegany County department of public works.
If the Keyser City Council adopts the rate increase, New Creek has threatened to appeal to the PSC.
Mayor William “Sonny” Rhodes said he expects both of those things to occur.
“That’s their right and there’s nothing we can do it about it,” he said. “But we’re raising the 30 percent across the board for everyone. They’re customers. They’re not running the plant. They’re not selling the water, we’re selling it to them.”
Allegany County probably would not be involved directly as a party in an appeal, Yoder said. In the past, PSC rulings on rate disputes between Keyser and New Creek automatically applied to Allegany County as another customer of the water system.
While the proposed percentage increase would apply evenly to all customers across the board, Keyser residents already pay higher rates than those living in the New Creek area or in McCoole. Currently, the lowest rate available to a customer in Keyser is $2.83 per 1,000 gallons, which would increase to $3.68.
Water is resold to Allegany County and New Creek at $2.23 per 1,000 gallons, and that rate would increase to $2.89.
The city ordinance must go through two more public readings before the council can put it to a vote. The vote will likely take place in early July.
Contact Megan Miller at mmiller@times-news.com.
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