West Virginia American Water Receives Approval of 2023 Distribution System Improvement Charge

In an order entered today, the Public Service Commission of West Virginia (PSC) approved a joint agreement reached last month in West Virginia American Water’s request for approval of its 2023 infrastructure replacement program, referred to as a Distribution System Improvement Charge (DSIC). The joint agreement was reached between West Virginia American Water, PSC staff, and the PSC’s Consumer Advocate Division. The DSIC program and its associated surcharge mechanism allow the company to receive more timely cost recovery of certain infrastructure investments deemed just, reasonable, and in the public interest, enabling the company to accelerate its infrastructure replacement and reliability program.

“West Virginia’s infrastructure recently received a ‘D’ grade from the American Society of Civil Engineers. The purpose of a DSIC is to address the national challenge of aging water infrastructure by directing additional investment to areas where improvements are most needed,” said Robert Burton, president of West Virginia American Water. “All parties involved in the agreement acknowledged the accelerated investments we’ve made since incorporating this surcharge in 2017 and recognize that this investment is a significant priority in the best interest of customers.”

The approved DSIC, effective January 1, 2023, includes $48.7 million in system-wide upgrades that West Virginia American Water will make in 2023. The improvements include $31.0 million to replace or upgrade more than 16 miles of water mains; $6.4 million to replace service lines and fire hydrants; $9.3 million to replace water meters; and $2.0 million for post-acquisition investment on troubled water systems.

Accordingly, customers will pay a 5.98 percent surcharge on their monthly bills (approximately $3.63 for the average residential customer) to help fund these projects. Most customers will see a prorated amount on their first 2023 bill, depending on their meter reading and billing schedule.

About West Virginia American Water:

West Virginia American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to approximately 560,000 people.

About American Water:

With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.

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