PAX, WV (LOOTPRESS) – The Public Service Commission of West Virginia has halted a proposed 40% water rate hike in the Town of Pax after residents filed a formal protest and state staff determined the town provided insufficient financial information to justify the increase.
The order, issued November 24, 2025, suspends the rate ordinance and delays any decision on the increase until Pax submits additional documentation demonstrating the basis for its proposed rates. Once that information is filed, the PSC will begin a 120-day review period required by state law.
Residents Protest Rate Hike
The dispute began after the Pax Town Council adopted a water rate ordinance on October 14, 2025, seeking to raise customer charges by about 40% beginning December 20. Within a week, the PSC received a petition signed by at least 25% of the town’s water customers, triggering mandatory review under West Virginia Code §24-2-4b.
Because the ordinance would increase revenues by more than 25%, state law required the rate change to be automatically suspended for 120 days once a valid protest was filed.
Town’s Effective Date Incorrect
PSC staff also noted that the town incorrectly listed December 20 as the date the new rates would take effect. State code requires municipal utilities to wait at least 45 days after adoption unless that period is formally waived, which the town’s filing did not show. The Commission calculated the earliest lawful effective date as November 28, 2025.
Staff Says Key Financial Information Missing
On November 10, PSC staff filed a motion stating Pax had not provided essential financial details, including:
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Revenue adjustments linked to the new rates
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Justification for decreases in operating revenues and expenses
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Clarification of an $18,338 shift in net income
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Support for a projected cash surplus of $68,040 under the proposed rate structure
Without this information, staff said it could not determine whether the increase was reasonable or necessary.
120-Day Review Period Tolled
Under state law, the PSC may “toll” — or pause — the statutory 120-day review period when a municipality fails to file the information required for analysis. The Commission determined that tolling was necessary until Pax submits the requested documentation.
If the town provides all required information on or before December 20, 2025, the suspension period will begin immediately on that date, meaning the rates cannot take effect before April 19, 2026.
If Pax files later, the 120-day clock will begin on the date of filing.
Next Steps
The case has been returned to Administrative Law Judges, who will set new deadlines once the town submits the missing documents. The PSC also reiterated that all filings are subject to public disclosure and encouraged parties to use electronic notification for future orders.
