FAYETTE COUNTY, WV (LOOTPRESS) – The Public Service Commission of West Virginia has approved a $13 million agreement allowing West Virginia American Water to acquire the water and wastewater assets of three Fayette County public service districts.
The order, issued Sept. 16, involves Armstrong Public Service District, Kanawha Falls Public Service District and Page-Kincaid Public Service District. The case stems from a joint application filed by West Virginia American Water and the Fayette County Commission in November 2025.
Under the agreement, West Virginia American Water is authorized to purchase the districts’ utility assets for $13 million, plus reasonable transaction costs estimated at $334,079.
Most customers of the three districts will gradually transition to West Virginia American Water’s rates over three years. Customers will initially pay 79% of the company’s then-current rates when the acquisition closes. That will increase to 86% after one year, 93% after two years and 100% after three years. Certain customers, including the West Virginia Division of Corrections and Rehabilitation, the City of Smithers and WVA Manufacturing, are subject to separate rate arrangements.
The agreement also requires outstanding public-sector loans associated with the districts to be paid off or otherwise addressed before the transaction closes. Certain grant repayment obligations must also be resolved.
The order includes additional provisions aimed at problems within the Kanawha Falls system. West Virginia American Water must begin planning and designing a project to address issues affecting customers in Cannelton Hollow and Scrabble Creek. The company and Kanawha Falls are also required to establish an interim agreement to address emergency health and safety issues involving water and wastewater service.
However, the Kanawha Falls portion of the acquisition faces an additional legal hurdle. A preliminary injunction issued by the Fayette County Circuit Court remains in effect. The PSC’s order states that Kanawha Falls’ assets cannot be transferred while the injunction prohibits the transaction. The transfer can move forward only after the requirements of the injunction are satisfied or it is modified, dissolved or terminated.
The PSC determined that the overall settlement is reasonable and in the public interest, saying the acquisition would allow West Virginia American Water to serve the districts’ customers while addressing debt, infrastructure, rate and operational issues.
