CHARLESTON, WV (LOOTPRESS) – A new bill introduced in the West Virginia Legislature, House Bill 3276, aims to establish a structured process for rate increases for water and sewer utilities in the state. If passed, the bill would create a standardized timeline and approval process to ensure that rate adjustments remain fair and reasonable for consumers.
Key Provisions of House Bill 3276
The bill proposes several important changes to how water and sewer utilities set their rates:
- Annual Rate Increases Tied to Inflation: Publicly owned water and sewer utilities would be permitted to raise rates once per year based on the U.S. Department of Labor’s Water and Sewerage Maintenance Index.
- Automatic Adjustments Without Formal Application: If the rate increase is equal to or below the inflation rate, the utility would not need to file an application for approval.
- Commission Oversight on Larger Increases: If a proposed increase exceeds inflation, the Public Service Commission (PSC) may suspend the rate and require further review.
- Limitations on Consecutive Increases: Utilities could implement up to four annual increases before being required to submit a detailed financial analysis to verify that funds are being used appropriately for system maintenance and improvements.
- Advance Notice to Customers: Customers must be notified at least 30 days but no more than 60 days before a rate change takes effect.
Why This Matters
The bill aims to balance the needs of utility companies and consumers by ensuring regular, predictable rate adjustments while preventing excessive or unjustified increases.
Supporters argue that the measure will help utilities maintain infrastructure while keeping costs fair for residents. However, some consumer advocates worry that annual rate increases could still burden low-income households if not carefully regulated.
Next Steps
The bill is currently under review in the West Virginia Legislature. If passed, it will provide a clear framework for managing water and sewer rate increases, offering both predictability for utilities and protection for consumers.
