FAYETTE COUNTY, WV (LOOTPRESS) – The Public Service Commission of West Virginia has ordered an investigation into the Kanawha Falls Public Service District following allegations of neglectful management.
According to the commission, the investigation will determine “whether its management is grossly and willfully inefficient and unresponsive to the needs of its customers for adequate water service,” specifically involving the Fayette County system.
The PSC said Kanawha Falls PSD was designated a “distressed water utility” in 2023 and was ordered to enter into an operations and management agreement with West Virginia-American Water Company.
The commission said that agreement was never completed and alleged Kanawha Falls has since refused to allow the company access to its water system.
As part of the commission’s investigation order, staff recommended that West Virginia-American Water be named in a receivership petition filed in circuit court. According to the PSC, neither the water company nor the Fayette County Commission opposed that recommendation.
The commission also said staff previously reported that Kanawha Falls indicated it “lacked internal funds to repair a pump station where untreated sewage is spilling onto the ground.”
Separately, the West Virginia Department of Environmental Protection filed a petition in Fayette County Circuit Court alleging the utility violated state water pollution and groundwater laws.
In response, the Fayette County Commission issued a statement saying:
“The Fayette County Commission is aware the Public Service Commission requested a judge order an investigation and receivership of the Kanawha Falls Public Service District and to seek removal of a board member. The allegations include gross mismanagement of the PSD. In addition, the WV Department of Environmental Protection recently filed an action in the Fayette County Circuit Court alleging environmental violations related the operation of Kanawha Falls PSD.
“In light of these allegations, the Fayette County Commission will investigate to determine what, if any, related action it can take. Providing reliable, clean water and sewer services to Fayette County residents is critical, which is why the Fayette County Commission approved selling Kanawha Falls and two other PSDs to West Virginia American Water to enable it to address these issues. That sale would be expedited if the affected PSDs agreed to it. Page-Kincaid PSD already has agreed to sell.
“We therefore encourage the Kanawha Falls and Armstrong PSD boards to reconsider their positions on selling their PSDs to West Virginia American Water to enable it to start making much-needed and long-awaited repairs and upgrades to those systems. This is particularly critical to Cannelton Hollow residents given the intolerable effects of the still unaddressed damages from the August 2022 flood.”
