The proposed bill aims to establish the Public Utility Stability Act by adding a new section, 24-2-4i, to the Code of West Virginia. This section will allow publicly owned water and sewer utilities to implement annual rate increases based on the United States Department of Labor Statistics Water and Sewerage Maintenance Index, effective July 1, 2026. Utilities will be permitted to raise rates once each year without needing to file an application for approval, seek municipal ordinance passage, or obtain county commission approval, provided the increase does not exceed the percentage increase in the Index for the relevant time period. The bill also outlines conditions under which these increases will be considered just and reasonable, including the requirement for utilities to file a revised tariff and provide notice as directed by the commission.

Additionally, the bill includes provisions for challenging rate increases, particularly for utilities with fewer than 4,500 customers and annual gross revenues under $3 million. It allows for up to four annual indexed rate increases before a utility must seek further approval under existing laws. The commission is tasked with issuing a general order each year to state the percentage increase in the Index, which will guide the maximum allowable rate increase. The bill emphasizes that any rate approved by the commission cannot be applied retroactively, ensuring that utilities adhere to the established guidelines while maintaining transparency and accountability in rate adjustments.

Statutes affected:
Introduced Version: 24-2-4i