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Armstrong Creek public-service district seeks lifting of 'distressed' designation; county schedules public meetings
Summary
Armstrong Creek Public Service District urged the Fayette County Commission to press the Public Service Commission to lift a 'distressed' designation so the PSD can pursue grants; commissioners held an executive session and agreed to schedule public meetings for further community input.
Members of the Armstrong Creek Public Service District and their counsel asked the Fayette County Commission on Feb. 6 to seek removal of a Public Service Commission order that had designated Armstrong Creek as a 'distressed' utility, saying the PSD has since added board members and stabilized operations.
David Hanna, counsel for Armstrong Creek PSD, told the commission the PSC's designation had been driven primarily by a management shortfall at the time of the review, and that Armstrong now has a full board and an on-staff class-2 operator who has done maintenance and system checks. Hanna said Armstrong's financial condition did not show impairment in the PSC's evaluation and that the PSD has built a working-capital account and is collecting customer payments at normal rates.
Why it matters: The 'distressed' finding can limit a PSD's ability to apply for grant funding until regulatory proceedings are complete, which PSD representatives said would delay needed sanitary surveys and capital planning.
Proceedings and executive session: The commission asked PSD representatives for a written statement of position and entered an executive session to discuss matters related to the potential sale/transfer of utility assets, grants and commercial-competition concerns. No formal decisions were made during the executive session. Commissioners said they would schedule public meetings in March in community locations, and County staff will coordinate outreach with the PSD board and the local fire chief.
What speakers said: Hanna said the PSD expects a sanitary-survey contractor (named in testimony as Yale Robinson) to identify future capital needs and that Armstrong had filed a Rule 19A rate case previously but withdrew it after PSC staff analysis suggested rates might have been reduced due to changed debt-service obligations. Hanna estimated the PSD's average customer bill at roughly $33 and contrasted that with an $80-plus bill cited for West Virginia American Water.
Authorities and constraints: Commissioners noted PSC staff cannot comment on pending cases and that the PSC had previously postponed a hearing at the commission's request to allow county outreach. The transcript cites a PSC order designating the PSD as distressed and a reference to Rule 19A rate proceedings on which the PSD had acted.
Next steps: The commission asked Armstrong Creek PSD to file a written position for consideration; county staff will set public meetings and follow up with PSC staff. The commission asked that regional staff from Region 4 and PSC staff stay involved as permitted by ethics rules.
Ending: The commission made no final decision at the Feb. 6 meeting and will revisit the matter after the PSD's written position and planned community meetings.
