SB568 SUB1 FIN
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 568
(By Senators Wooton)
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[Originating in the Committee on Finance;
reported March 1, 1996.]
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A BILL to amend and reenact section twenty-five, article thirteen-
a, chapter sixteen of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; to amend and reenact
sections one-b and three, article one, chapter twenty-four;
and to amend and reenact section two, article two, chapter
twenty-four, all relating to the public service commission;
decreasing the time period to prefile for a certificate of
public convenience and necessity in advance of the formal
application from sixty to thirty days; requiring the public
service commission to advise and assist Class III cities and
Class IV towns or villages; adjusting the salaries of the
members of the public service commission; and allowing the
public service commission to establish water and sewer rates based on the debt costs associated with new projects.
Be it enacted by the Legislature of West Virginia:
That section twenty-five, article thirteen-a, chapter sixteen
of the code of West Virginia one thousand nine hundred thirty-one,
as amended, be amended and reenacted; that sections one-b and
three, article one, chapter twenty-four be amended and reenacted;
and that section two, article two, chapter twenty-four be amended
and reenacted, all to read as follows:
CHAPTER 16. PUBLIC HEALTH.
ARTICLE 13A. PUBLIC SERVICE DISTRICTS FOR WATER, SEWERAGE AND GAS
SERVICES.
§16-13A-25. Borrowing and bond issuance; procedure.
Notwithstanding any other provisions of this article to the
contrary, a public service district shall not borrow money, enter
into contracts for the provision of engineering, design or
feasibility studies, issue or contract to issue revenue bonds or
exercise any of the powers conferred by the provisions of sections
thirteen, twenty or twenty-four of this article, without the prior
consent and approval of the public service commission. Unless the
properties to be constructed or acquired represent ordinary
extensions or repairs of existing systems in the usual course of
business, a public service district must first obtain a certificate of public convenience and necessity from the public service
commission in accordance with the provisions of chapter twenty-four
of this code, when a public service district is seeking to acquire
or construct public service property.
Sixty Thirty days prior to making formal application for said
the certificate, the public service district shall prefile with the
public service commission its plans and supporting information for
said the project and shall publish a Class II legal advertisement
in a newspaper or newspapers of general circulation in each city,
incorporated town or municipal corporation if available in the
public service district, which legal advertisement shall state:
(a) The amount of money to be borrowed, or the amount of
revenue bonds to be issued: Provided, That if the amount is an
estimate, the notice may be stated in terms of an amount "not to
exceed" a specific amount;
(b) The interest rate and terms of the loan or bonds:
Provided, That if the interest rate is an estimate, the notice may
be stated in terms of a rate "not to exceed" a specific rate;
(c) The public service properties to be acquired or
constructed, and the cost of same the public service properties;
(d) The anticipated rates which will be charged by the public
service district: Provided, That if the rates are an estimate, the notice may be stated in terms of rates "not to exceed" a specific
rate; and
(e) The date that the formal application for a certificate of
public convenience and necessity is to be filed with the public
service commission. The public service commission may grant its
consent and approval for the certificate, or any other request for
approval under this section, subject to such terms and conditions
as may be necessary for the protection of the public interest,
pursuant to the provisions of chapter twenty-four of this code, or
may withhold such consent and approval for the protection of the
public interest.
In the event of disapproval, the reasons therefor for the
disapproval shall be assigned in writing by the commission.
CHAPTER 24. PUBLIC SERVICE COMMISSION.
ARTICLE 1. GENERAL PROVISIONS.
§24-1-1b. Supplemental rule for reorganization.
The public service commission shall, by general order, create
a division within its staff which shall provide legal, engineering,
financial and accounting advice and assistance to public service
districts and Class III cities and Class IV towns or villages in
operational, financial and regulatory matters, and may perform or
participate in the studies required under section one-b, article thirteen-a, chapter sixteen of this code.
§24-1-3. Commission continued; membership; chairman; compensation.
(a) The public service commission of West Virginia, heretofore
established, is continued and directed as provided by this chapter,
chapter twenty-four-a and chapter twenty-four-b of this code.
After having conducted a performance audit through its joint
committee on government operations, pursuant to section nine,
article ten, chapter four of this code, the Legislature hereby
finds and declares that the public service commission should be
continued and reestablished. Accordingly, notwithstanding the
provisions of section four, of said article ten, chapter four of
this code, the public service commission shall continue to exist
until the first day of July, one thousand nine hundred ninety-nine.
The public service commission may sue and be sued by that name.
Such The public service commission shall consist of three members
who shall be appointed by the governor with the advice and consent
of the Senate. The commissioners shall be citizens and residents
of this state and at least one of them shall be duly licensed to
practice law in West Virginia, of with not less than ten years'
actual work experience in the legal profession at the as a member
of a state bar. No more than two of said the commissioners shall
be members of the same political party. Each commissioner shall, before entering upon the duties of his or her office, take and
subscribe to the oath provided by section five, article IV of the
constitution of this state. which The oath shall be filed in the
office of the secretary of state. The governor shall designate one
of the commissioners to serve as chairman at the governor's will
and pleasure. The chairman shall be the chief administrative
officer of the commission. The governor may remove any
commissioner only for incompetency, neglect of duty, gross
immorality, malfeasance in office or violation of subsection (c) of
this section.
(b) The unexpired term of members of the public service
commission at the time this subsection becomes effective are
continued through the thirtieth day of June, one thousand nine
hundred seventy-nine. In accordance with the provisions of
subsection (a) of this section, the governor shall appoint three
commissioners, one for a term of two years, one for a term of four
years and one for a term of six years, all the terms beginning on
the first day of July, one thousand nine hundred seventy-nine. All
future Appointments are for terms of six years, except that an
appointment to fill a vacancy is for the unexpired term only. The
commissioners whose terms are terminated by the provisions of this
subsection are eligible for reappointment.
(c) No person while in the employ of, or holding any official
relation to, any public utility subject to the provisions of this
chapter, or holding any stocks or bonds thereof of a public utility
subject to the provisions of this chapter, or who is pecuniarily
interested therein in, may serve as a member of the commission or
as an employee thereof of the commission.. Nor may any such
commissioner be a candidate for or hold public office, or be a
member of any political committee, while acting as such a
commissioner; nor may any commissioner or employee of said the
commission receive any pass, free transportation or other thing of
value, either directly or indirectly, from any public utility or
motor carrier subject to the provisions of this chapter. In case
any of the commissioners becomes a candidate for any public office
or a member of any political committee, the governor shall remove
him or her from office and shall appoint a new commissioner to fill
the vacancy created.
(d) Effective the first day of November, one thousand nine
hundred ninety-one, and in light of the assignment of new,
substantial additional duties embracing new areas and fields of
activity under certain legislative enactments, each commissioner
shall receive an annual salary of sixty thousand dollars to be paid
in monthly installments from the special funds in such the amounts as that follows:
(1) From the public service commission fund collected under
the provisions of section six, article three of this chapter,
forty-eight thousand dollars;
(2) From the public service commission motor carrier fund
collected under the provisions of section six, article six, chapter
twenty-four-a of this code, ten thousand dollars; and
(3) From the public service commission gas pipeline safety
fund collected under the provisions of section three, article five,
chapter twenty-four-b of this code, two thousand dollars.
In addition to this salary provided for all commissioners, the
chairman of the commission shall receive five thousand dollars per
annum to be paid in monthly installments from the public service
commission fund collected under the provisions of section six,
article three of this chapter on and after the first day of
January, one thousand nine hundred ninety-two.
(h) Effective the first day of January, one thousand nine
hundred ninety-six, and in light of the assignment of new,
substantial additional duties embracing new areas and fields of
activity under certain legislative enactments, each commissioner
shall receive a salary of seventy thousand dollars a year to be
paid in monthly installments from the special funds in the amounts that follows:
(1) From the public service commission fund collected under
the provisions of section six, article three of this chapter,
fifty-six thousand dollars;
(2) From the public service commission motor carrier fund
collected under the provisions of section six, article six, chapter
twenty-four-a of this code, eleven thousand seven hundred dollars;
and
(3) From the public service commission gas pipeline safety
fund collected under the provisions of section three, article five,
chapter twenty-four-b of this code, two thousand three hundred
dollars.
In addition to this salary provided for all commissioners, the
chairman of the commission shall receive five thousand dollars a
year to be paid in monthly installments from the public service
commission fund collected under the provisions of section six,
article three of this chapter, on and after the first day of
January, one thousand nine hundred ninety-six.
ARTICLE 2. POWERS AND DUTIES OF PUBLIC SERVICE COMMISSION.
§24-2-2. General power of commission to regulate public
utilities.
The commission is hereby given power to investigate all rates, methods and practices of public utilities subject to the
provisions of this chapter; to require them to conform to the
laws of this state and to all rules, regulations and orders of
the commission not contrary to law; and to require copies of all
reports, rates, classifications, schedules and timetables in
effect and used by such the public utility or other person, to be
filed with the commission, and all other information desired by
the commission relating to such the investigation and
requirements, including inventories of all property in such form
and detail as the commission may prescribe. The commission may
compel obedience to its lawful orders by mandamus or injunction
or other proper proceedings in the name of the state in any
circuit court having jurisdiction of the parties or of the
subject matter, or the supreme court of appeals direct, and such
the proceedings shall have priority over all pending cases. The
commission may change any intrastate rate, charge or toll which
is unjust or unreasonable or any interstate charge with respect
to matters of a purely local nature which have not been regulated
by or pursuant to an act of Congress and may prescribe such a
rate, charge or toll as would be that is just and reasonable, and
change or prohibit any practice, device or method of service in
order to prevent undue discrimination or favoritism between persons and between localities and between commodities for a like
and contemporaneous service. Rates are not discriminatory, if
when considering the debt costs associated with a future water or
sewer project which would not benefit existing customers, the
commission establishes rates which ensure that the future
customers to be served by the new project are solely responsible
for the debt costs associated with the project. But in no case
shall the rate, toll or charge be more than the service is
reasonably worth, considering the cost thereof of the service.
Every order entered by the commission shall continue in force
until the expiration of the time, if any, named by the commission
in such the order, or until revoked or modified by the
commission, unless the same be order is suspended, modified or
revoked by order or decree of a court of competent jurisdiction.