ENROLLED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 568
(Senator Wooton, original sponsor)
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[Passed March 9, 1996; in effect ninety days from passage.]
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AN ACT 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 of
said code; and to amend and reenact section two, article two
of said chapter, 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 of said code be amended and
reenacted; and that section two, article two of said chapter 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 section
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.
Thirty days prior to making formal application for the
certificate, the public service district shall prefile with the
public service commission its plans and supporting information for
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 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 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:
Provided, That advice
and assistance to a Class III city or Class IV town or village
shall only be given if such advice or assistance is specifically
requested by the Class III city or the Class IV town or village.
The request may be withdrawn by the city or town at any time, after
which the commission shall not provide further assistance or
advice.
§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, 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. 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, with not less than ten years' actual work
experience in the legal profession as a member of a state bar. No
more than two of 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. 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 terms of members of the public service
commission at the time this subsection becomes effective are
continued. Upon expiration of the terms, 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 of a public utility subject
to the provisions of this chapter, or who is pecuniarily interested
in a public utility subject to the provisions of this chapter, may
serve as a member of the commission or as an employee of the
commission. Nor may any commissioner be a candidate for or hold
public office, or be a member of any political committee, while
acting as a commissioner; nor may any commissioner or employee of
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) The salaries of members of the public service commission
and the manner in which they are paid established by the prior
enactment of this section are continued. Effective the first day
of July, 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 an annual salary of sixty-five
thousand dollars to be paid in monthly installments from the
special funds in the amounts that follow:
(1) From the public service commission fund collected under
the provisions of section six, article three of this chapter,
fifty-two 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 eight hundred fifty
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 one hundred fifty
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 July,
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.
(a) 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 the public utility or other person, to be filed with
the commission, and all other information desired by the commission
relating to 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 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 a rate, charge or toll 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. But in no case shall the rate,
toll or charge be more than the service is reasonably worth,
considering the cost 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 the order, or until
revoked or modified by the commission, unless the order is
suspended, modified or revoked by order or decree of a court of
competent jurisdiction.
(b) Notwithstanding any other provision of this code to the
contrary, 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.
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