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BEFORE THE PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON
CASE NO. 04-0095-S-CN
CITY OF CHARLES TOWN SEWER DEPARTMENT
Application for a Certificate of Convenience and Necessity to construct improvements to its existing wastewater treatment system.
INITIAL BRIEF
The Jefferson County Public Service District ("District") fully supports the City of Charles Town's ("City") application for a certificate of convenience and necessity. At hearing, it was amply demonstrated that the City's project is needed, and in a hurry. The District urges the Commission to grant a certificate of convenience and necessity to the City for this project.
The primary purpose of the District's Initial Brief is to address the post-hearing Final Joint Staff Memorandum filed on September 3, 2004. In that Memorandum, the Staff of the Commission recommends approval of the certificate application contingent upon receipt of an NPDES permit modification for the plant. The District concurs with this recommendation. Staff further recommends that the Commission approve the First Revised Amendment to the 1988 Sewer Service Agreement for a limited period of up to one year or until the sewer resale rate is implemented by the City of Charles Town, whichever comes first. The District objects to this recommendation as being unworkable. Upon the Commission granting a certificate for this project to the City, the City will seek to issue bonds for this project. The underwriter of those bonds would not be willing to issue such bonds if there is the possibility that the First Revised Amendment to the 1988 Sewer Service Agreement may expire without an alternative arrangement being in place. For that reason, the District recommends that the Commission simply approve the First Revised Amendment to the 1988 Sewer Service Agreement.
In the September 3, 2004 Final Memorandum from Randy Lengyel and Jim Weimer, Staff recommends that the City of Charles Town establish a resale rate for sewer service within 120 days or else the Staff of the Commission will petition for a general investigation into the City of Charles Town. The District believes it would be more prudent for the City of Charles Town and the Staff of the Commission to refrain from taking any action related to the First Revised Amendment to the 1988 Sewer Service Agreement until after the project financing has closed. While such a case is open, it is unlikely that bonds could be issued. The District would further note that a petition initiating a general investigation on account of a municipal utility's failure to adopt an ordinance may be legally vulnerable, since the Commission only has limited jurisdiction over municipal utilities pursuant to W.Va. Code §24-2-4b. The Commission's jurisdiction in regard to inter-utility agreements, such as the 1988 Agreement and the First Revised Amendment to that Agreement, is extremely broad. The District has no objection to the Staff of the Commission filing a petition to initiate a general investigation to review the First Revised Amendment to the 1988 Sewer Service Agreement, as well as the 1988 Sewer Service Agreement itself. In fact, subject to the inclusion of other generally acceptable terms, the District would prefer to receive service from Charles Town pursuant to a simple bulk rate arrangement. However, it is urgent that this project go forward without delay. The District would ask that the Staff refrain from filing such a petition until after the financing related to this project has closed.
In the post-hearing Final Joint Staff Memorandum, the Staff of the Commission calculates the rate impact upon each of the three utilities should no additional customers emerge in Jefferson County. Staff's calculations do not take into account the effect drawing down Huntfield's $700,000 letter of credit would have upon the three utilities. Should no customers emerge, those three utilities would draw upon Huntfield's letter of credit for the first three plus years to pay for the debt service in full. Thereafter, the three utilities would need to shoulder the burden of the debt service, as indicated by Staff. It is highly unlikely that the areas which are served by the Charles Town wastewater treatment plant will experience no growth in customers. In any event, should that occur, Staff's calculations show that the rate impact would not be too great. Under any fair risk/benefit analysis, this project should go forward.
For the foregoing reasons, the Jefferson County Public Service District prays that the Public Service Commission grant a certificate of convenience and necessity to the City of Charles Town contingent upon the City obtaining an NPDES permit, and approve the First Revised Amendment to the 1988 Sewer Service Agreement.
Respectfully submitted,
JEFFERSON COUNTY PUBLIC SERVICE DISTRICT
By Counsel
James V. Kelsh
[WV State Bar No. 6617]
BB&T Square - Suite 1230
300 Summers Street
Post Office Box 3713
Charleston, West Virginia 25337
(304) 343-1654
(jefferso\charles.twn\04-0095\initial.brf)
CERTIFICATE OF SERVICE
I, James V. Kelsh, counsel for Jefferson
County Public Service District, do hereby certify that a copy of the foregoing
Initial Brief has been served upon the following parties of record this 10th
day of September, 2004 in the manner indicated:
AND E-MAIL:
Hoy Shingleton, Esquire
115 Aikens Center-Suite 24
Martinsburg, West Virginia 25401
E-mail: shinglet@adelphia.net
David C. Glover, Esquire
Waters Warner & Harris, PLLC
Post Office Box 1716
Clarksburg, West Virginia 26302-1716
E-mail: davidcglover@aol.com
Georgianna Pardo, Esquire
44084 Riverside Parkway, Suite 300
Leesburg, Virginia 21076-5102
E-mail: gpardo@reedsmith.com
Paul Burke
Post Office Box 1320
Shepherdstown, West Virginia 25443
E-mail: docs @numbersinstitute.com
numbersinstitute@juno.com
VIA HAND DELIVERY AND E-MAIL:
Honorable Keith George
Administrative Law Judge
Public Service Commission
201 Brooks Street
Charleston, West Virginia 25323
E-mail: kgeorge@psc.state.wv.us
Ron Robertson, Esquire
Legal Division
Public Service Commission
201 Brooks Street
Charleston, West Virginia 25301
E-mail: rrobertson@psc.state.wv.us __________________________________
JAMES V. KELSH
September 10, 2004
Ms. Sandra Squire
Executive Secretary
Public Service Commission
of West Virginia
Post Office Box 812
Charleston, West Virginia 25323
RE: CASE NO. 04-0095-S-CN
CITY OF CHARLES TOWN SEWER DEPARTMENT
Dear Ms. Squire:
Enclosed herein for filing on behalf of Jefferson County Public Service District please find the original and twelve (12) copies of its Initial Brief in the above-referenced proceeding.
A copy of the Initial Brief has been served upon all parties of record as evidenced by the attached Certificate of Service.
Sincerely,
James V. Kelsh
(WV State Bar No. 6617)
JVK/nal
Enclosures
cc: Honorable Keith George
Ron Robertson, Esq.
Hoy Shingleton, Esq.
Georgianna Pardo, Esq.
David Glover, Esq.
Paul Burke
Sue Lawton
(jefferso\charles.twn\04-0095\initial.brf)