SB 515 — Clarifying PSC jurisdiction over water and sewer utilities

requirements;

payments;

rates and charges.

(a) For the purposes of this section:

(1) “Contract” means an agreement entered into by a municipality with any other party for the purchase of electric output, capacity, or energy from a project as defined herein;

(2) “Any other party” means any other legal entity, including, but not limited to, another municipality, political subdivision, public authority, agency, or instrumentality of any state or the United States, a partnership, a limited partnership, a limited liability company, a corporation, an electric cooperative, or an investor-owned utility existing under the laws of any state;

and (3) “Project” or “projects” means systems or facilities owned by another party and used for the generation, transmission, transformation, or supply of electric power, or any interest in them, whether an undivided interest as a tenant in common or otherwise, or any right to the output, capacity, or services thereof.

(b) In addition to the general authority to purchase electricity on a wholesale basis for resale to its customers, any municipality that owns and operates an electric power system under the provisions of this article may enter into a contract with any other party for the purchase of electricity from one or more projects located in the United States that provides that the contracting municipality is obligated to make payments required by the contract whether or not a project is completed, operable, or operating and notwithstanding the suspension, interruption, interference, reduction, or curtailment of the output of a project or the power and energy contracted for, and that the payments shall not be subject to any reduction, whether by offset or otherwise, and shall not be conditioned upon performance or nonperformance by any other party.

The contract may provide that, in the event of a default by the municipality or any other party to the contract in the performance of each entity’s obligations under the contract, any nondefaulting municipality or any other party to the contract shall on a pro rata basis succeed to the rights and interests of, and assume the obligations of, the defaulting party.

(c) Notwithstanding any other provisions of law, ordinance or charter provision to the contrary, a contract under §8-19-2(b) of this code may extend for more than years or 50 years from the date a project is estimated to be placed into normal continuous operation and the execution and effectiveness of the contract is not subject to any authorizations or approvals by the state or any agency, commission, instrumentality, or political subdivision thereof except as otherwise specifically required by law.

(d) A contract §8-19-2(b) of this code may provide that payments by the municipality are made solely from and may be secured by a pledge of and lien upon revenues derived by the municipality from ownership and operation and that payments shall constitute an operating expense of the electric power system.

No obligation under the contract shall constitute a legal or equitable pledge, charge, lien, or encumbrance upon any property of the municipality or upon any of its income, receipts, or revenues, except the revenues of the municipality’s electric power system.

Neither the faith and credit nor the taxing power of the municipality shall be pledged for the payment of any obligation under the contract.

(e) A municipality contracting under the provisions of §8-19-2(b) of this code is obligated to fix, charge, and collect rents, rates, fees, and charges for electric power and energy and other services it sells, furnishes, or supplies through its electric power system in an amount sufficient to provide revenues adequate to meet its obligations under the contract and to pay any and all other amounts payable from or constituting a charge and lien upon the revenues, including the amounts necessary to pay the principal and interest on any municipal bonds issued related to its electric power system:

Provided, That any change in the rates and charges of the municipality to the customers of the electric power system under the provisions of this section are subject to the provisions and requirements of section four-b, article two.

chapter twenty-four §8-19-2a of this code and the obligations of the municipality under the contract are costs of providing electric service within the meaning of that section.

§8-19-2a.  Procedure for changing rates of municipal electric power systems;

legislative findings.

 All rates, fees, and charges set by municipal electric power systems shall be just, reasonable, applied without unjust discrimination between or preference for any customer or class of customer, and based primarily on the costs of providing these services.

All rates and charges shall be based upon the measured or reasonably estimated cost of service and the equitable sharing of those costs between customers based upon the cost of providing the service received by the customer, including a reasonable slant-in-service depreciation expense.

The rates and charges shall be adopted by the power system’s governing board by municipal ordinance to be effective not sooner than 45 days after adoption.

The 45-day waiting period may be waived by public vote of the governing body if that body finds and declares the public utility that is a political subdivision of the state to be in financial distress, such that the 45-day waiting period would be detrimental to the ability of the utility to deliver continued and compliant public services:  Provided, That notice of intent to effect a rate change shall be  specified on the monthly billing statement of the customers of the utility for the month next preceding the month in which the rate change is to become effective, and the governing body shall give its customers other reasonable notices as will allow filing of timely objections to the proposed rate change and full participation in municipal rate legislation through the provision of a public forum in which customers may comment upon the proposed rate change prior to an enactment vote.

Notwithstanding the exclusion of municipal power systems’ rates, fees, charges, and rate-making process from the jurisdiction of the Public Service Commission, municipal power systems shall submit information regarding their rates, fees, and charges to the commission as set forth in §24-2-9 of this code.

§8-19-2b.

Right of appeal by customers.

Customers may appeal a rate increase to the circuit court of the county in which the municipality is located on the grounds that the rate ordinance or its passage does not comply with the provisions of this article by filing a petition, signed by at least 25 percent of the customers served by the municipal electric utility.  Any petition challenging the ordinance must be filed within 30 days following the adoption of the rate ordinance.

Whenever a municipality or county commission shall, under the provisions of this article, determine to acquire, by purchase or otherwise, construct, establish, extendextend, or equip a waterworks system or an electric power system, or to construct any additions, bettermentsbetterments, or improvements to any waterworks or electric power system, it shall cause an estimate to be made of the cost thereof, and may, by ordinance or order, provide for the issuance of revenue bonds under the provisions of this article, which ordinance or order shall set forth a brief description of the contemplated undertaking, the estimated cost thereof, the amount, rate or rates of interest, the time and place of payment and other details in connection with the issuance of the bonds.

All the bonds and the interest thereon shall be exempt from all taxation by this state, or any county, municipalitymunicipality, or county commission, political subdivision or agency thereof.

Notwithstanding any other provision of this code to the contrary, the real and personal property which a municipality or county has acquired and constructed according to the provisions of this article, and any leasehold interest therein held by other persons, shall be deemed public property and shall be exempt from taxation by the state, or any county, municipalitymunicipality, or other levying body, so long as the same is owned by the municipality or county:

or (2) acquired or constructed with the written agreement of the county school board, county commissioncommission, and any municipal authority within whose jurisdiction the electric power system is or is to be physically situate.

Notwithstanding anything contained in this statute to the contrary, this exemption shall be applicable to any leasehold or similar interest held by persons other than a municipality or county only if acquired or constructed with the written agreement of the county school board, county commissioncommission, and any municipal authority within whose jurisdiction the electric power system is or is to be physically situate:

Provided, however, That payments made to any county commission, county school boardboard, or municipality in lieu of tax pursuant to such an agreement shall be distributed as if the payments resulted from ad valorem property taxation.

Unless the governing body of the municipality or county commission shall otherwise determine, the ordinance or order shall also declare that a statutory mortgage lien shall exist upon the property so to be acquired, constructed, established, extendedextended, or equipped, fix minimum rates or charges for water or electricity to be collected prior to the payment of all of said bonds and shall pledge the revenues derived from the waterworks or electric power system for the purpose of paying the bonds and interest thereon, which pledge shall definitely fix and determine the amount of revenues which shall be necessary to be set apart and applied to the payment of the principal of and interest upon the bonds and the proportion of the balance of the revenues, which are to be set aside as a proper and adequate depreciation account, and the remainder shall be set aside for the reasonable and proper maintenance and operation thereof.

Provided,Provided further, That, the notice given by the municipality or county commission for a change in rates or charges to be charged for the services from the waterworkswaterworks, or electric power system, shall be provided by a Class I legal advertisement in a newspaper of general circulation in its service territory not less than one week prior to the public hearing of the governing body of the municipality or the county commission required for the approval of the change in rates or charges.

Power and authority of municipality to enact ordinances and make rules and fix rates, feesfees, or charges;

change in rates, feesfees, or charges;

(a)(1) The governing body of a municipality availing itself of the provisions of this article shall have plenary power and authority to make, enact and enforce all necessary rules for the repair, maintenance, operationoperation, and management of the combined system of the municipality and for the use thereof.

The governing body of a municipality also has the plenary power and authority to make, enact and enforce all necessary rules and ordinances for the care and protection of any such system for the health, comfortcomfort, and convenience of the public, to provide a clean water supply, to provide properly treated sewage insofar as it is reasonably possible to do and, if applicable, to properly collecting and controlling the stormwater as is reasonably possible to do:

Provided, That no municipality may make, enactenact, or enforce any rule, regulation or ordinance regulating any highways, roadroad, or drainage easements or storm water facilities constructed, ownedowned, or operated by the West Virginia Division of Highways.

(2) A municipality has the plenary power and authority to charge the users for the use and service of a combined system and to establish required deposits, rates, feesfees, or charges for such purpose.

Separate deposits, rates, feesfees, or charges may be fixed for the water and sewer services respectively and, if applicable, the stormwater services, or combined rates, fees or for the combined water and sewer services, and, if applicable, the storm water services.

Such deposits, rates, feesfees, or charges, whether separate or combined, shall be sufficient at all times to pay the cost of repair, maintenancemaintenance, and operation of the combined system, provide an adequate reserve fund, an adequate depreciation fundfund, and pay the principal and interest upon all revenue bonds issued under this article.

Deposits, rates, feesfees, or charges shall be established, revisedrevised, and maintained by ordinance and become payable as the governing body may determine by ordinance.

The rates, feesfees, or charges shall be changed, from time to time, as necessary, consistent with the provisions of this article:article:  Provided, That the notice given by the municipality for a change in rates or charges to be charged for the services from the waterworks, shall be provided by a Class I legal advertisement in the a newspaper of general circulation in its service territory not less than one week prior to the public hearing of the governing body of the municipality required for the approval of the change in rates or charges.

 Provided,(3) That,All thenew noticeapplicants given by the municipality for aservice changeshall inindicate rates or charges to be charged for the servicesmunicipality from the waterworks or electricgoverning powerbody system,whether shallthey beare providedan byowner Classor Itenant legalwith advertisementrespect into the a newspaper of general circulation in its service territorylocation. not less than one week prior to the public hearing of the governing body of the municipality required for the approval of the change in rates or charges.

            (3) All new applicants for service shall indicate to the municipality or governing body whether they are an owner or tenant with respect to the service location.

(4) The municipality or governing body, but only one of them, may collect from all new applicants for service a deposit of $100 or two twelfths of the average annual usage of the applicant'sapplicant’s specific customer class, whichever is greater, to secure the payment of water and sewage service rates, fees and charges in the event they become delinquent as provided in this section.

In any case where a deposit is forfeited to pay service rates, fees and charges which were delinquent and the user'suser’s service is disconnected or terminated, service may not be reconnected or reinstated by the municipality or governing body until another deposit equal to $100 or a sum equal to two twelfths of the average usage for the applicant'sapplicant’s specific customer class, whichever is greater, is remitted to the municipality or governing body.

After 12 months of prompt payment history, the municipality or governing body shall return the deposit to the customer or credit the customer'scustomer’s account with interest at a rate to be set by the Public Service Commission:

Whenever any rates, fees, rentalsrentals, or charges for services or facilities furnished remain unpaid for a period of 20 days after they become due, the user of the services and facilities provided is delinquent and the user is liable at law until all rates, fees and charges are fully paid.

Provided further, That nothing contained within the rules of the Public Service Commission shall be deemed to require any agents or employees of the municipality or governing body to accept payment at the customer'scustomer’s premises in lieu of discontinuing service for a delinquent bill.

(b) Whenever any rates, feesfees, or charges for services or facilities furnished remain unpaid for a period of 20 days after they become due, the user of the services and facilities provided shall be delinquent and the municipality or governing body may apply any deposit against any delinquent fee.

(c) All rates, feesfees, or charges for water service, sewer service and, if applicable, stormwater service, whenever delinquent, as provided by ordinance of the municipality, shall be liens of equal dignity, rank and priority with the lien on such premises of state, county, school and municipal taxes for the amount thereof upon the real property served.

The municipality has the plenary power and authority to enforce such lien in a civil action to recover the money due for services rendered plus court fees and costs and reasonable attorney'sattorney’s fees:

Provided, That an owner of real property may not be held liable for the delinquent rates, feesfees, or charges for services or facilities of a tenant, nor shall any lien attach to real property for the reason of delinquent rates, feesfees, or charges for services or facilities of a tenant of the real property, unless the owner has contracted directly with the municipality to purchase such services or facilities.

(e) No municipality may foreclose upon the premises served by it for delinquent rates, feesfees, or charges for which a lien is authorized by this section except through a civil action in the circuit court of the county wherein the municipality lies.

§122.26, has the authority to enact ordinances or regulations which allow for the issuance of orders, the right to enter properties and the right to impose reasonable fines and penalties regarding correction of violations of municipal stormwater ordinances or regulations within the municipal watershed served by the municipal stormwater system, as long as such rules, regulations, finesfines, or acts are not contrary to any rules or orders of the Public Service Commission.

(h) A municipality which has been designated by the Environmental Protection Agency as an entity to serve a West Virginia Separate Storm Sewer System community shall prepare an annual report detailing the collection and expenditure of rates, feesfees, or charges and make it available for public review at the place of business of the governing body and the stormwater utility main office.

tenant'stenant’s deposit;

A governing body has the power and duty, by ordinance, to establish and maintain just and equitable rates, feesfees, or charges for the use of and the service rendered by:

(a) Sewerage works, to be paid by the owner of each and every lot, parcel of real estateestate, or building that is connected with and uses such works by or through any part of the sewerage system of the municipality or that in any way uses or is served by such works;

and (b) Stormwater works, to be paid by the owner of each and every lot, parcel of real estateestate, or building that in any way uses or is served by such stormwater works or whose property is improved or protected by the stormwater works or any user of such stormwater works.

(c) The governing body may change and readjust such rates, feesfees, or charges from time to time.

However, no rates, feesfees, or charges for stormwater services may be assessed against highways, road and drainage easements or stormwater facilities constructed, ownedowned, or operated by the West Virginia Division of Highways.

(e) The governing body may collect from all new applicants for service a deposit of $50 or two twelfths of the average annual usage of the applicant'sapplicant’s specific customer class, whichever is greater, to secure the payment of service rates, fees and charges in the event they become delinquent as provided in this section.

In any case where a deposit is forfeited to pay service rates, fees and charges which were delinquent at the time of disconnection or termination of service, service may not be reconnected or reinstated by the governing body until another deposit equal to $50 or a sum equal to two twelfths of the average usage for the applicant'sapplicant’s specific customer class, whichever is greater, is remitted to the governing body.

After 12 months of prompt payment history, the governing body shall return the deposit to the customer or credit the customer'scustomer’s account with interest at a rate as the Public Service Commission may prescribe:

Provided, however, That nothing contained within the rules of the Public Service Commission shall be deemed to require any agents or employees of the governing body to accept payment at the customer'scustomer’s premises in lieu of discontinuing service for a delinquent bill.

(f) Such rates, feesfees, or charges shall be sufficient in each year for the payment of the proper and reasonable expense of operation, repair, replacementsreplacements, and maintenance of the works and for the payment of the sums herein required to be paid into the sinking fund.

(g) No such rates, feesfees, or charges shall be established until after a public hearing, at which all the users of the works and owners of property served or to be served thereby and others interested shall have an opportunity to be heard concerning the proposed rates, feesfees, or charges.

(h) After introduction of the ordinance fixing such rates, feesfees, or charges, and before the same is finally enacted, notice of such hearing, setting forth the proposed schedule of rates, feesfees, or charges, shall be given by publication as a Class II I-0 legal advertisement in compliance with the provisions of §59-3-1 et seq.

(i) After the hearing, which may be adjourned, from time to time, the ordinance establishing rates, feesfees, or charges, either as originally introduced or as modified and amended, shall be passed and put into effect.

The rates, feesfees, or charges established for any class of users or property served shall be extended to cover any additional premises thereafter served which fall within the same class, without the necessity of any hearing or notice.

(j) Any change or readjustment of such rates, feesfees, or charges may be made in the same manner as the rates, feesfees, or charges were originally established as hereinbefore provided:

The aggregate of the rates, feesfees, or charges shall always be sufficient for the expense of operation, repair and maintenance and for the sinking fund payments.

(k) All rates, feesfees, or charges, if not paid when due, shall constitute a lien upon the premises served by such works.

If any service rate, fees or charge is not paid within 20 days after it is due, the amount thereof, together with a penalty of 10 percent and a reasonable attorney'sattorney’s fee, may be recovered by the board in a civil action in the name of the municipality.

The lien may be foreclosed against such lot, parcel of landland, or building in accordance with the laws relating thereto.

(m) The board collecting the rates, feesfees, or charges shall be obligated under reasonable rules to shut off and discontinue both water and sewer services to all delinquent users of water, sewer or stormwater facilities and shall not restore either water facilities or sewer facilities to any delinquent user of any such facilities until all delinquent rates, feesfees, or charges for water, sewer and stormwater facilities, including reasonable interest and penalty charges, have been paid in full, as long as such actions are not contrary to any rules or orders of the Public Service Commission:

Provided, That nothing contained within the rules of the Public Service Commission shall be deemed to require any agents or employees of the municipality or governing body to accept payment at the customer'scustomer’s premises in lieu of discontinuing service for a delinquent bill.

(a) (1) The board may make, enactenact, and enforce all needful rules in connection with the acquisition, construction, improvement, extension, management, maintenance, operation, care, protectionprotection, and the use of any public service properties owned or controlled by the district.

(D) Any combination of paragraphs§16-13A-9(a)(1)(A), (A),§16-13A-9(a)(1)(B), (B) and (C)§16-13A-9(a)(1)(C) of this subdivision;code;

However, no rates, feesfees, or charges for stormwater services may be assessed against highways, road and drainage easements or stormwater facilities constructed, ownedowned, or operated by the West Virginia Division of Highways.

(2) In accordance with the provisions set forth in §24-1-1(j) of this code, after July 1, 2018, the board of a public service district providing water or sewer service separately or in combination with at least four thousand five hundred customers and annual combined gross revenue of $3 million or more from its separate or combined water and sewer services may make, enactenact, and enforce all needful rules in connection with the enactment or amendment of rates, fees and charges of the district.

Such notice shall include a statement that a change in rates, fees and charges is being considered, the time, datedate, and location of the hearing of the board at which the change will be considered and that the proposed rates, fees and charges are on file at the office of the Districtdistrict for review during regular business hours.

the date, time and place of;of the public hearing on the resolution approving such revised rates, fees and charges;

the public hearing on the resolution approving such revised rates, fees and charges and the place or places within the district where the proposed resolution approving the revised rates, fees and charges may be inspected by the public.

Within 45 - days of receipt of the proposed rates, fees and charges, the county commission shall take action to approve, modify, or reject the proposed rates, fees and charges, in its sole discretion.

If, after 45-days,45 days, the county commission has not taken final action to approve, modifymodify, or reject the proposed rates, fees and charges, as presented to the county commission, shall be effective with no further action by the board or county commission.

(F) Enactment of the proposed or modified rates, fees and charges shall follow an affirmative vote by the county commission and shall be effective no sooner than 45-days45 days following action.

The 45-day waiting period may be waived by public vote of the county commission only if the commission finds and declares the district to be in financial distress such that the 45-45-day day waiting period would be detrimental to the ability of the district to deliver continued and compliant public services.

(G) The public service district, or a customer aggrieved by the changed rates or charges who presents to the circuit court a petition signed by at least 750 customers or percent of the customers served by the public service district whichever is fewer when dissatisfied by the approval, modification, or rejection by the county commission of the proposed rates, fees and charges under the provisions of this subdivision (2) may file a complaint regarding the rates, fees and charges resulting from the action of, or failure to act by, the county commission in the circuit court of the county in which the county commission sits:

Provided, That any complaint or petition filed hereunder shall be filed within 30 days of the county commission’s final action approving, modifying or rejecting such rates, fees and charges, or the expiration of the 45-day period from the receipt by the county commission, in writing, of the rates, fees and charges approved by resolution of the board, without final action by the county commission to approve, modifymodify, or reject such rates, fees and charges, and the circuit court shall resolve said complaint:

Whenever any rates, fees, rentalsrentals, or charges for services or facilities furnished remain unpaid for a period of 20 days after the same become due and payable, the user of the services and facilities provided is delinquent and the user is liable at law until all rates, fees and charges are fully paid.

(b) In the event that any publicly or privately owned utility, city, incorporated town, other municipal corporation or other public service district included within the district owns and operates separately water facilities, sewer facilities or stormwater facilities and the district owns and operates another kind of facility, either water or sewer, or both, as the case may be, then the district and the publicly or privately owned utility, city, incorporated towntown, or other municipal corporation or other public service district shall covenant and contract with each other to shut off and discontinue the supplying of water service for the nonpayment of sewer or stormwater service fees and charges:

Any public service district which provides water and sewer service, water and stormwater service or water, sewersewer, and stormwater service has the right to terminate water service for delinquency in payment of water, sewer or stormwater bills.

(c) Any district furnishing sewer facilities within the district may require or may, by petition to the circuit court of the county in which the property is located, compel or may require the Division of Health to compel all owners, tenantstenants, or occupants of any houses, dwellingsdwellings, and buildings located near any sewer facilities where sewage will flow by gravity or be transported by other methods approved by the Division of Health, including, but not limited to, vacuum and pressure systems, approved under the provisions of §16-1-9 of this code, from the houses, dwellings or buildings into the sewer facilities, to connect with and use the sewer facilities and to cease the use of all other means for the collection, treatment and disposal of sewage and waste matters from the houses, dwellings and buildings where there is gravity flow or transportation by any other methods approved by the Division of Health, including, but not limited to, vacuum and pressure systems, approved under the provisions of §16-1-9 of this code and the houses, dwellingsdwellings, and buildings can be adequately served by the sewer facilities of the district and it is declared that the mandatory use of the sewer facilities provided for in this subsection is necessary and essential for the health and welfare of the inhabitants and residents of the districts and of the state.

The circuit court shall adjudicate the merits of the petition by summary hearing to be held not later than 30 days after service of petition to the appropriate owners, tenantstenants, or occupants.

(d) Whenever any district has made available sewer facilities to any owner, tenanttenant, or occupant of any house, dwellingdwelling, or building located near the sewer facility and the engineer for the district has certified that the sewer facilities are available to and are adequate to serve the owner, tenanttenant, or occupant and sewage will flow by gravity or be transported by other methods approved by the Division of Health from the house, dwellingdwelling, or building into the sewer facilities, the district may charge, and the owner, tenant or occupant shall pay, the rates and charges for services established under this article only after 30 days’ notice of the availability of the facilities has been received by the owner, tenanttenant, or occupant.

(e) The owner, tenanttenant, or occupant of any real property may be determined and declared to be served by a stormwater system only after each of the following conditions is met:

The district may charge and the owner, tenanttenant, or occupant shall pay the rates, fees and charges for stormwater services established under this article only after 30 days’ notice of the availability of the stormwater system has been received by the owner.

(f) All delinquent fees, rates and charges of the district for either water facilities, sewer facilities, gas facilitiesfacilities, or stormwater systems or stormwater management programs are liens on the premises served of equal dignity, rankrank, and priority with the lien on the premises of state, county, school and municipal taxes.

In addition to the other remedies provided in this section, public service districts are granted a deferral of filing fees or other fees and costs incidental to the bringing and maintenance of an action in magistrate court for the collection of delinquent water, sewer, stormwaterstormwater, or gas bills.

(2) Provide the availability of adequate, economicaleconomical, and reliable utility services throughout the state;

(3) Encourage the well-planned development of utility resources in a manner consistent with state needs and in ways consistent with the productive use of the state'sstate’s energy resources, such as coal;

The Public Service Commission is charged with the responsibility for appraising and balancing the interests of current and future utility service customers, the general interests of the state'sstate’s economy and the interests of the utilities subject to its jurisdiction in its deliberations and decisions.

the reasons, if any, why persons engaged or heretofore engaged in the development of gas wells in this state or the Appalachian areas have been discouraged from drilling, developingdeveloping, or selling the production of such wells;

(3) The cumulative effect of the practices mentioned in subdivisions§24-1-1(e)(1) (1) and (2)§24-1-1(e)(2) of this subsectioncode upon rates theretofore and hereafter charged gas utility customers in West Virginia.

(1) A division within the Public Service Commission which shall include the office of the commissioners, the hearing examiners and such support staff as may be necessary to carry out the functions of decision-makingdecisionmaking and general supervision of the commission, which functions shall not include advocacy in cases before the commission;

(3) The means and procedures by which the division to be created pursuant to the provisions of subdivision§24-1-1(f)(2) (2) of this subsectioncode shall protect the interests of each class of customers and the means by which the commission will assure that such division will be financially and departmentally independent of the division created by subdivision§24-1-1(f)(1) (1) of this subsection;code;

(4) The creation of a division within the Public Service Commission which shall assume the duties and responsibilities now charged to the commissioners with regard to motor carriers which division shall exist separately from those divisions set out in subdivisions§24-1-1(f)(1) (1) and (2)§24-1-1(f)(2) of this subsectioncode and which shall relieve the commissioners of all except minimal administrative responsibilities as to motor carriers and which plan shall provide for a hearing procedure to relieve the commissioners from hearing motor carrier cases;

(6) The manner in which the commission will strengthen its knowledge and independent capacity to analyze key conditions and trends in the industries it regulates extending from general industry analysis and supply-demand forecasting to continuing and more thorough scrutiny of the capacity planning, construction management, operating performanceperformance, and financial condition of the major companies within these industries.

Such plan shall be based on the concept that each of the divisions mentioned in subdivisions (1),§24-1-1(f)(1), (2)§24-1-1(f)(2) and (4)§24-1-1(f)(4) of this subsectioncode shall exist independently of the others and the plan shall discourage ex parte communications between them by such means as the commission shall direct, including, but not limited to, separate clerical and professional staffing for each division.

Further, the Public Service Commission is directed to incorporate within the said plan to the fullest extent possible the recommendations presented to the subcommittee on the Public Service Commission of the Joint Committee on Government and Finance in a final report dated February,February 1979, and entitled A Plan for Regulatory Reform and Management Improvement.

(a) (a) The jurisdiction of the commission shall extend to all public utilities in this state and shall include any utility engaged in any of the following public services:

sewer systems servicing twenty-five or more persons or firms other than the owner of the sewer systems:

Provided, That if a public utility other than a political subdivision intends to provide sewer service by an innovative, alternative method, as defined by the federal Environmental Protection Agency, the innovative, alternative method is a public utility function and subject to the jurisdiction of the Public Service Commission regardless of the number of customers served by the innovative, alternative method;

any public service district created under the provisions of article thirteen-a, chapter sixteen of this code, except that the Public Service Commission will have no jurisdiction over the provision of stormwater services by a public service district;

toll bridges, wharves, ferries;

solid waste facilities;

and any other public service:

Provided, however, That natural gas producers who provide natural gas service to not more than twenty-five residential customers are exempt from the jurisdiction of the commission with regard to the provisions of such residential service:

Provided further, That upon request of any of the customers of such natural gas producers, the commission may, upon good cause being shown, exercise such authority as the commission may deem appropriate over the operation, rates and charges of such producer and for such length of time as the commission may consider to be proper.  (b) The jurisdiction of the commission over political subdivisions of this state providing separate or combined water and/or sewer services and having at least four thousand five hundred customers and annual combined gross revenues of $3 million or more that are political subdivisions of the state is limited to:

(1) General supervision of public utilities, as granted and described in section five of this article;

(2) Regulation of measurements, practices, acts or services, as granted and described in section seven of this article;

(3) Regulation of a system of accounts to be kept by a public utility that is a political subdivision of the state, as granted and described in section eight of this article;

(4) Submission of information to the commission regarding rates, tolls, charges or practices, as granted and described in section nine of this article;

(5) Authority to subpoena witnesses, take testimony and administer oaths to any witness in any proceeding before or conducted by the commission, as granted and described in section ten of this article;

and (6) Investigation and resolution of disputes between a political subdivision of the state providing wholesale water and/or wastewater treatment or other services, whether by contract or through a tariff, and its customer or customers, including, but not limited to, rates, fees and charges, service areas and contested utility combinations.

Provided, that any request for an investigation related to such a dispute that is based on the act or omission of the political subdivision shall be filed within 30 days of the act or omission of the political subdivision and the commission shall resolve said dispute within 120 days of filing.

The one hundred-twenty day period for resolution of the dispute may be tolled by the Commission until the necessary information showing the basis of the rates, fees and charges or other information as the commission considers necessary is filed.

Provided further, the disputed rates, fees and charges so fixed by the political subdivision providing separate or combined water and/or sewer services shall remain in full force and effect until set aside, altered or amended by the commission in an order to be followed in the future.

(7) Customers of water and sewer utilities operated by a political subdivision of the state may bring formal or informal complaints regarding the commission’s exercise of the powers enumerated in this section and the commission shall resolve these complaints (8) In the event that a political subdivision has a deficiency in either its bond revenue or bond reserve accounts, or is otherwise in breach of a bond covenant, any bond holder may petition the Public Service Commission for such redress as will bring the accounts to current status or otherwise resolve the breached covenant, and the commission shall have jurisdiction to fully resolve the alleged deficiency or breach.

(c) The commission may, upon application, waive its jurisdiction and allow a utility operating in an adjoining state to provide service in West Virginia when:

(1) An area of West Virginia cannot be practicably and economically served by a utility licensed to operate within the State of West Virginia;

(2) Said area can be provided with utility service by a utility which operates in a state adjoining West Virginia;

(3) The utility operating in the adjoining state is regulated by a regulatory agency or commission of the adjoining state;

and (4) The number of customers to be served is not substantial.

The rates the out-of-state utility charges West Virginia customers shall be the same as the rate the utility is duly authorized to charge in the adjoining jurisdiction.

The commission, in the case of any such utility, may revoke its waiver of jurisdiction for good cause.

(d) Any other provisions of this chapter to the contrary notwithstanding:

(1) An owner or operator of an electric generating facility located or to be located in this state that has been designated as an exempt wholesale generator under applicable federal law, or will be so designated prior to commercial operation of the facility, and for which such facility the owner or operator holds a certificate of public convenience and necessity issued by the commission on or before July 1, 2003, shall be subject to subsections (e), (f), (g), (h), (i) and (j), section eleven-c of this article as if the certificate of public convenience and necessity for such facility were a siting certificate issued under said section and shall not otherwise be subject to the jurisdiction of the commission or to the provisions of this chapter with respect to such facility except for the making or constructing of a material modification thereof as provided in subdivision (5) of this subsection.

(2) Any person, corporation or other entity that intends to construct or construct and operate an electric generating facility to be located in this state that has been designated as an exempt wholesale generator under applicable federal law, or will be so designated prior to commercial operation of the facility, and for which facility the owner or operator does not hold a certificate of public convenience and necessity issued by the commission on or before July 1, 2003, shall, prior to commencement of construction of the facility, obtain a siting certificate from the commission pursuant to the provisions of section eleven-c of this article in lieu of a certificate of public convenience and necessity pursuant to the provisions of section eleven of this article.

An owner or operator of an electric generating facility as is described in this subdivision for which a siting certificate has been issued by the commission shall be subject to subsections (e), (f), (g), (h), (i) and (j), section eleven-c of this article and shall not otherwise be subject to the jurisdiction of the commission or to the provisions of this chapter with respect to such facility except for the making or constructing of a material modification thereof as provided in subdivision (5) of this subsection.

(3) An owner or operator of an electric generating facility located in this state that had not been designated as an exempt wholesale generator under applicable federal law prior to commercial operation of the facility that generates electric energy solely for sale at retail outside this state or solely for sale at wholesale in accordance with any applicable federal law that preempts state law or solely for both such sales at retail and such sales at wholesale and that had been constructed and had engaged in commercial operation on or before July 1, 2003, shall not be subject to the jurisdiction of the commission or to the provisions of this chapter with respect to such facility, regardless of whether such facility subsequent to its construction has been or will be designated as an exempt wholesale generator under applicable federal law:

Provided, That such owner or operator shall be subject to subdivision (5) of this subsection if a material modification of such facility is made or constructed.

(4) Any person, corporation or other entity that intends to construct or construct and operate an electric generating facility to be located in this state that has not been or will not be designated as an exempt wholesale generator under applicable federal law prior to commercial operation of the facility that will generate electric energy solely for sale at retail outside this state or solely for sale at wholesale in accordance with any applicable federal law that preempts state law or solely for both such sales at retail and such sales at wholesale and that had not been constructed and had not been engaged in commercial operation on or before July 1, 2003, shall, prior to commencement of construction of the facility, obtain a siting certificate from the commission pursuant to the provisions of section eleven-c of this article in lieu of a certificate of public convenience and necessity pursuant to the provisions of section eleven of this article.

An owner or operator of an electric generating facility as is described in this subdivision for which a siting certificate has been issued by the commission shall be subject to subsections (e), (f), (g), (h), (i) and (j), section eleven-c of this article and shall not otherwise be subject to the jurisdiction of the commission or to the provisions of this chapter with respect to such facility except for the making or constructing of a material modification thereof as provided in subdivision (5) of this subsection.

(5) An owner or operator of an electric generating facility described in this subsection shall, before making or constructing a material modification of the facility that is not within the terms of any certificate of public convenience and necessity or siting certificate previously issued for the facility or an earlier material modification thereof, obtain a siting certificate for the modification from the commission pursuant to the provisions of section eleven-c of this article in lieu of a certificate of public convenience and necessity for the modification pursuant to the provisions of section eleven of this article and, except for the provisions of section eleven-c of this article, shall not otherwise be subject to the jurisdiction of the commission or to the provisions of this chapter with respect to such modification.

(6) The commission shall consider an application for a certificate of public convenience and necessity filed pursuant to section eleven of this article to construct an electric generating facility described in this subsection or to make or construct a material modification of such electric generating facility as an application for a siting certificate pursuant to section eleven-c of this article if the application for the certificate of public convenience and necessity was filed with the commission prior to July 1, 2003, and if the commission has not issued a final order thereon as of that date.

(7) The limitations on the jurisdiction of the commission over, and on the applicability of the provisions of this chapter to, the owner or operator of an electric generating facility as imposed by and described in this subsection shall not be deemed to affect or limit the commission’s jurisdiction over contracts or arrangements between the owner or operator of such facility and any affiliated public utility subject to the provisions of this chapter.

(e) The commission shall not have jurisdiction of Internet protocol-enabled service or voice-over Internet protocol-enabled service.

As used in this subsection:

(1) “Internet protocol-enabled service” means any service, capability, functionality or application provided using Internet protocol, or any successor protocol, that enables an end user to send or receive a communication in Internet protocol format, or any successor format, regardless of whether the communication is voice, data or video.

(2) “Voice-over Internet protocol service” means any service that:

(i) Enables real-time two-way voice communications that originate or terminate from the user’s location using Internet protocol or a successor protocol;

and (ii) Uses a broadband connection from the user’s location.

(3) The term “voice-over Internet protocol service” includes any service that permits users to receive calls that originate on the public-switched telephone network and to terminate calls on the public-switched telephone network.

(f) Notwithstanding any other provisions of this article, the commission shall not have jurisdiction to review or approve any transaction involving a telephone company otherwise subject to sections twelve and twelve-a, article two, chapter twenty-four of this code if all entities involved in the transaction are under common ownership.

(a) The jurisdiction of the commission shall extend to all public utilities in this state and shall include any utility engaged in any of the following public services:

Common carriage of passengers or goods, whether by air, railroad, street railroad, motor, or otherwise, by express or otherwise, by land, water or air, whether wholly or partly by land, water or air;

transportation of oil, gas or water by pipeline;

transportation of coal and its derivatives and all mixtures and combinations thereof with other substances by pipeline;

sleeping car or parlor car services;

transmission of messages by telephone, telegraph, or radio;

generation and transmission of electrical energy by hydroelectric or other utilities for service to the public, whether directly or through a distributing utility;

supplying water, gas, or electricity by municipalities or others;

Provided further, That upon request of any of the customers of such natural gas producers, the commission may, upon good cause being shown, exercise such authority as the commission may deem appropriate over the operation, rates and charges of such producer and for such length of time as the commission may consider to be proper.proper.  (b) In accordance with the provisions set forth in §24-1-1(j) of this code, after July 1, 2018, the jurisdiction of the commission over political subdivisions of this state providing separate or combined water and/or sewer services is limited to:

(b) In accordance with the provisions set forth in §24-1-1(j) of this code, after July 1, 2018, the jurisdiction of the commission over political subdivisions of this state providing separate or combined water and/or sewer services and having at least four thousand five hundred customers and annual combined gross revenues of $3 million or more that are political subdivisions of the state is shall be limited to:

(4) Submission of information to the commission regarding rates, tolls, chargescharges, or practices, as granted and described in §24-2-9 of this code;

(5) Authority to subpoena witnesses, take testimonytestimony, and administer oaths to any witness in any proceeding beforebefore, or conducted byby, the commission, as granted and described in §24-2-10 of this code;

and (6)  InvestigationInvestigation and resolution of disputes between a political subdivision of the state providing wholesale water and/or wastewater treatment or other services, whether by contract or through a tariff, and its customer or customers, including, but not limited to, rates, fees and charges, service areas and contested utility combinations:

Provided, however, TheThat the disputed rates, feesfees, and charges so fixed by the political subdivision providing separate or combined water and/or sewer services shall remain in full force and effect until set aside, alteredaltered, or amended by the commission in an order to be followed in the future.

(7)  CustomersCustomers of water and sewer utilities operated by a political subdivision of the state may bring formal or informal complaints regarding the commission’s exercise of the powers enumerated in this section and the commission shall resolve these complaints:

Provided, That any formal complaint filed under this section after the amendments made to this section in the 2018 regular session of the Legislature that is based on the act or omission of the political subdivision shall be filed within 30 days of the act or omission complained of and the commission shall resolve said complaint within 120 days of filing.

The 120120-day day period for resolution of the dispute may be tolled by the commission until the necessary information showing the basis of the matter complained of is filed by the political subdivision:

Provided, however, That whenever the commission shall find any regulations, measurements, practices, actsacts, or service to be unjust, unreasonable, insufficientinsufficient, or unjustly discriminatory, or otherwise in violation of any provisions of this chapter, or shall find that any service is inadequate, or that any service which is demanded cannot be reasonably obtained, the commission shall determine and declare, and by order fix reasonable measurement, regulations, acts, practices or services, to be furnished, imposed, observed and followed in lieu of those found to be unjust, unreasonable, insufficient, or unjustly discriminatory, inadequateinadequate, or otherwise in violation of this chapter, and shall make such other order respecting the same as shall be just and reasonable:  Provided further, That ifwith therespect matterto complainedmatters ofaffecting would affect rates, fees and charges so fixed by the political subdivision providing separate or combined water and/or sewer services, and for which a complaint was filed after the effective date of the amendments made to this section made during the 2018 regular session of the Legislature, such rates,rates fees,fees or charges shall remain in full force and effect until set aside, alteredaltered, or amended by the commission in an order to be followed in the future.

(8)  InIn the event that a political subdivision has a deficiency in either its bond revenue or bond reserve accounts, or is otherwise in breach of a bond covenant, any bond holder may petition the Public Service Commission for such redress as will bring the accounts to current status or otherwise resolve the breached covenant, and the commission shall have jurisdiction to fully resolve the alleged deficiency or breach.

(2)  SaidSaid area can be provided with utility service by a utility which operates in a state adjoining West Virginia;

(3)  TheThe utility operating in the adjoining state is regulated by a regulatory agency or commission of the adjoining state;

and (4)  TheThe number of customers to be served is not substantial.

(d) (d) Any other provisions of this chapter to the contrary notwithstanding:

(1)  AnAn owner or operator of an electric generating facility located or to be located in this state that has been designated as an exempt wholesale generator under applicable federal law, or will be so designated prior to commercial operation of the facility, and for which such facility the owner or operator holds a certificate of public convenience and necessity issued by the commission on or before July 1, 2003, shall be subject to §24-2-11c§24-2-11c(e) (e)(f)(g)(h)(i)through and§24-2-11c(j) (j) of this code as if the certificate of public convenience and necessity for such facility were a siting certificate issued under said§24-2-11c(e) sectionthrough §24-2-11c(j) of this code and shall not otherwise be subject to the jurisdiction of the commission or to the provisions of this chapter with respect to such facility except for the making or constructing of a material modification thereof as provided in subdivision§24-2-1(d)(5) (5) of this subsection.code.

(2) Any person, corporationcorporation, or other entity that intends to construct or construct and operate an electric generating facility to be located in this state that has been designated as an exempt wholesale generator under applicable federal law, or will be so designated prior to commercial operation of the facility, and for which facility the owner or operator does not hold a certificate of public convenience and necessity issued by the commission on or before July 1, 2003, shall, prior to commencement of construction of the facility, obtain a siting certificate from the commission pursuant to the provisions of §24-2-11c of this code in lieu of a certificate of public convenience and necessity pursuant to the provisions of §24-2-11 of this code.

An owner or operator of an electric generating facility as is described in this subdivision for which a siting certificate has been issued by the commission shall be subject to §24-2-11c§24-2-11c(e) (e)(f)(g)(h)(i)through and§24-2-11c(j) (j) of this code and shall not otherwise be subject to the jurisdiction of the commission or to the provisions of this chapter with respect to such facility except for the making or constructing of a material modification thereof as provided in subdivision§24-2-1(d)(5) (5) of this subsection.code.

Provided, That such owner or operator shall be subject to subdivision§24-2-1-(d)(5) (5) of this subsectioncode if a material modification of such facility is made or constructed.

(4) Any person, corporationcorporation, or other entity that intends to construct or construct and operate an electric generating facility to be located in this state that has not been or will not be designated as an exempt wholesale generator under applicable federal law prior to commercial operation of the facility that will generate electric energy solely for sale at retail outside this state or solely for sale at wholesale in accordance with any applicable federal law that preempts state law or solely for both such sales at retail and such sales at wholesale and that had not been constructed and had not been engaged in commercial operation on or before July 1, 2003, shall, prior to commencement of construction of the facility, obtain a siting certificate from the commission pursuant to the provisions of §24-2-11c of this code in lieu of a certificate of public convenience and necessity pursuant to the provisions of §24-2-11 of this code.

An owner or operator of an electric generating facility as is described in this subdivision for which a siting certificate has been issued by the commission shall be subject to §24-2-11c§24-2-11c(e) (e)(f)(g)(h)(i)through and§24-2-11c(j) (j) of this code and shall not otherwise be subject to the jurisdiction of the commission or to the provisions of this chapter with respect to such facility except for the making or constructing of a material modification thereof as provided in subdivision§24-2-1(d)(5) (5) of this subsection.code.

(7) The limitations on the jurisdiction of the commission over, and on the applicability of the provisions of this chapter to, the owner or operator of an electric generating facility as imposed by and described in this subsection shall not be deemed to affect or limit the commission'scommission’s jurisdiction over contracts or arrangements between the owner or operator of such facility and any affiliated public utility subject to the provisions of this chapter.

(e) (e) The commission shall not have jurisdiction of Internet protocol-enabled service or voice-over Internet protocol-enabled service.

(1) “Internet protocol-enabled service” means any service, capability, functionalityfunctionality, or application provided using Internet protocol, or any successor protocol, that enables an end user to send or receive a communication in Internet protocol format, or any successor format, regardless of whether the communication is voice, datadata, or video.

(f) Notwithstanding any other provisions of this article, the commission shall not have jurisdiction to review or approve any transaction involving a telephone company otherwise subject to §24-2-12 and §-24-2-12a§24-2-12a of this code if all entities involved in the transaction are under common ownership.

ARTICLE(g) 2.The Legislature finds that the rates, fees, charges, and ratemaking of municipal power systems are most fairly and effectively regulated by the local governing body.

POWERSTherefore, ANDnotwithstanding DUTIESany OFother PUBLICprovisions SERVICEof COMMISSION.this article, the commission shall not have jurisdiction over the setting or adjustment of rates, fees, and charges of municipal power systems.  Further, the jurisdiction of the Public Service Commission over municipal power systems is limited to that granted specifically in this code.

(a) The commission is hereby given power to may investigate all rates, methodsmethods, 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, regulationsregulations, and orders of the commission not contrary to law;

and to require copies of all reports, rates, classifications, schedulesschedules, 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 the form and detail as the commission may prescribe.prescribe prescribes.

The commission may change any intrastate rate, chargecharge, 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, devicedevice, 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 may the rate, tolltoll, or charge be more than the service is reasonably worth, considering the cost of the service.

Provided, That in the case of utilities used by emergency shelter providers, the commission shall prescribe such rates, chargescharges, or tolls that are the lowest available.

"Emergency“Emergency shelter provider"provider” means any nonprofit entity which provides temporary emergency housing and services to the homeless or to victims of domestic violence or other abuse.

(c) Notwithstanding any other provision of this code to the contrary, in accordance with the provisions set forth in §24-1-1(j) of this code, effective July 1, 2018, the jurisdiction of the commission over water and/or sewer utilities that are political subdivisions of the state providing a separate or combined services and having at least four thousand five hundred customers and annual combined gross revenues of $3 million or more shall be is limited to those powers enumerated in §24-2-1(b) of this code.

(d) Notwithstanding any other provision of this code to the contrary, the jurisdiction of the commission does not extend over the setting or adjustment of rates, fees, and charges of municipal power systems.

The rates, fees, charges and rate-making process of municipal power systems is governed by the provisions of §8-19-2a of this code.

(a) The commission shall have power to may enforce, originate, establish, changechange, and promulgate tariffs, rates, joint rates, tollstolls, and schedules for all public utilities except for municipal power systems and water and/or sewer utilities that are political subdivisions of this state as provided in §24-1-1(j) of this code:

providing a separate or combined services and having at least four thousand five hundred customers and annual combined gross revenues of $3 million or more Provided, That the commission may exercise such rate authority over municipally owned electric or natural gas utilities or a municipally owned water and/or sewer utility as provided in §24-1-1(j) of this code having less than four thousand five hundred customers or annual combined gross revenues of less than $3 million dollars only under the circumstances and limitations set forth in §24-2-4b of this code, and subject to the provisions set forth in subsection§24-2-3(b) (b) of this section.code.

And whenever the commission shall, after hearing, find finds any existing rates, tolls, tariffs, joint rates or schedules enacted or maintained by a utility regulated under the provisions of this section to be unjust, unreasonable, insufficientinsufficient, or unjustly discriminatory or otherwise in violation of any of the provisions of this chapter, the commission shall by an order fix reasonable rates, joint rates, tariffs, tollstolls, or schedules to be followed in the future in lieu of those found to be unjust, unreasonable, insufficientinsufficient, or unjustly discriminatory or otherwise in violation of any provisions of law, and the said the commission, in fixing the rate of any railroad company, may fix a fair, reasonable and just rate to be charged on any branch line thereof, independent of the rate charged on the main line of such the railroad.

(b) Any complaint filed with the commission by a resale or wholesale customer of a municipally owned water and/or sewer utility over which the commission has jurisdiction jurisdiction under the provisions of §24-1-1(j) of this code having less than four thousand five hundred customers or annual combined gross revenue of less than $3 million dollars concerning rates, feesfees, or charges applicable to such resale or wholesale customer shall be filed within 30 days of the enactment by the governing body of the political subdivision of an ordinance changing rates, feesfees, or charges for such service.

The 120120-day day period for resolution of the complaint may be tolled by the commission until the necessary information showing the basis of the rates, fees, chargescharges, and other information as the commission considers necessary is filed:

Provided, That rates, feesfees, and charges so fixed by the political subdivision providing separate or combined water and/or sewer services shall remain in full force and effect until set aside, alteredaltered, or amended by the commission in an order to be followed in the future:

Provided, however, That the commission shall have no authority to order refunds for amounts collected during the pendency of the complaint proceeding unless the rates, fees, or charges so enacted by the governing body were enacted subject to refund under the provisions of §24-2-4b(d)(2) or §214-2-4b(g)§24-2-4b(g) of this code.

The commission shall adopt rules and regulations setting forth the scope, frequencyfrequency, and application of such audits and investigations to the various utilities subject to its jurisdiction.

(a) After June 30, 1981, no public utility subject to this chapter, except for water or sewer utilities that are political subdivisions of this state as provided in §24-1-1(j) of this code, water and/or sewer utilities that are political subdivisions of the state providing separate or combined services and having at least four thousand five hundred customers and annual gross revenue of $3 million or more from its separate or combined services shall change, suspend or annul any rate, joint rate, charge, rental or classification except after 30 days'days’ notice to the commission and the public, which notice shall plainly state the changes proposed to be made in the schedule then in force and the time when the changed rates or charges shall go into effect;

Provided, That in the case of a public utility having 25002,500 customers or less and which is not a political subdivision and which is not principally owned by any other public utility corporation or public utility holding corporation, the commission may suspend the operation of such schedule and defer the use of such rate, charge, classification, regulation or practice, but not for a longer period than 120 days beyond the time when such rate, charge, classification, regulation or practice would otherwise go into effect;

and in the case of a public utility having more than 25002,500 customers, but not more than 50005,000 customers, and which is not a political subdivision and which is not principally owned by any other public utility corporation or public utility holding corporation, the commission may suspend the operation of such schedule and defer the use of such rate, charge, classification, regulationregulation, or practice, but not for a longer period than 150 days beyond the time when such rate, charge, classification, regulationregulation, or practice would otherwise go into effect;

and in the case of a public utility having more than 50005,000 customers, but not more than 75007,500 customers, and which is not a political subdivision and which is not principally owned by any other public utility corporation or public utility holding corporation, the commission may suspend the operation of such schedule and defer the use of such rate, charge, classification, regulationregulation, or practice, but not for a longer period than 180 days beyond the time when such rate, charge, classification, regulationregulation, or practice would otherwise go into effect;

and after full hearing, whether completed before or after the rate, charge, classification, regulationregulation, or practice goes into effect, the commission may make such order in reference to such rate, charge, classification, regulationregulation, or practice as would be proper in a proceeding initiated after the rate, charge, classification, regulationregulation, or practice had become effective:

Notwithstanding the provisions of subsection§24-2-4a(e) (e) of this section,code, The public service districts shall provide notice by a Class I legal advertisement in a newspaper of general circulation in its service territory of the percentage increase in rates at least 14 days prior to the effective date of the increased rates.

Any refund determined to be determined to be due and owing as a result of any difference between any final rates approved by the commission and the rates placed into effect subject to refund shall be refunded by the public service district as a credit against each customer'scustomer’s account for a period of up to six months after entry of the commission'scommission’s final order.

Any remaining balance which is not fully credited by credit within six months after entry of the commission'scommission’s final order shall be directly refunded to the customer by check:

The fact of any rate, charge, classification, regulationregulation, or practice going into effect by reason of the commission'scommission’s failure to act thereon shall not affect the commission'scommission’s power and authority to subsequently act with respect to any such application or change in any rate, charge, classification, regulation or practice.

Any rate, charge, classification, regulationregulation, or practice which shall be approved, disapproved, modified or changed, in whole or in part, by decision of the commission shall remain in effect as so approved, disapproved, modifiedmodified, or changed during the period or pendency of any subsequent hearing thereon or appeal therefrom.

(c) At any hearing involving a rate sought to be increased or involving the change of any rate, charge, classification, regulationregulation, or practice, the burden of proof to show the justness and reasonableness of the increased rate or proposed increased rate, or the proposed change of rate, charge, classification, regulationregulation, or practice shall be upon the public utility making application for such change.

(e) Other than as provided in subsection§24-2-4a(b) (b) of this sectioncode relating to public service districts, where more than 20 members of the public are affected by a proposed change in rates, it shall be a sufficient notice to the public within the meaning of this section if such notice is published as a Class II legal advertisement in compliance with the provisions of §59-3-1 et seq.

(g) No utility regulated under the provisions of this section may make application for a general rate increase while another general rate application is pending before the commission and not finally acted upon, except pursuant to the provisions of subsection§24-2-4a(f) (f) of this section.code.

Procedures for changing rates of electric and natural gas cooperatives, local exchange services of telephone cooperativescooperatives, and municipally operated public utilities.

(b) All rates and charges set by electric cooperatives, natural gas cooperativescooperatives, and municipally operated public utilities that are political subdivisions of the state providing water, sewer, electric and/or natural gas services that are subject to the provisions of this section and all rates and charges for local exchange services set by telephone cooperatives shall be just, reasonable, applied without unjust discrimination between or preference for any customer or class of customer and based primarily on the costs of providing these services.

The rates and charges shall be adopted by the electric, natural gas, telephone cooperativecooperative, or political subdivision’s governing board or body and, in the case of the municipally operated public utility, by municipal ordinance to be effective not sooner than 45 days after adoption.

Provided, That notice of intent to effect a rate change shall be specified on the monthly billing statement of the customers of the utility for the month next preceding the month in which the rate change is to become effective and the utility governing body shall give its customers and, in the case of a cooperative, its customers, membersmembers, and stockholders, other reasonable notices as will allow filing of timely objections to the proposed rate change and full participation in municipal rate legislation through the provision of a public forum in which customers may comment upon the proposed rate change prior to an enactment vote.

If a petition, as set out in subdivision§24-2-4b(c)(1), (1),§24-2-4b(c)(2), (2) or (3),§24-2-4b(c)(3) subsection (c) of this section,code, is received and the electric cooperative, natural gas cooperative or telephone cooperative or municipality has failed to file with the commission the rates and charges with information showing the basis of rates and charges and other information as the commission considers necessary, the suspension period limitation of 120 days and the 100-day period limitation for issuance of an order by a hearing examiner, as contained in subsections§24-2-4b(d) (d) and (e)§24-2-4b(e) of this section,code, is tolled until the necessary information is filed.

(d) (1)  Subject to the provisions of §24-1-1(j)of this code, the filing of a petition with the commission signed by not less than 25 percent of the customers served by the municipally owned electric or natural gas public utility or a municipally owned water and/or sewer utility having less than four thousand five hundred customers or annual combined gross revenues of less than $3 million dollars or 25 percent of the membership of the electric, natural gasgas, or telephone cooperative residing within the state under subsection§24-2-4b(c) (c) of this sectioncode shall suspend the adoption of the rate change contained in the ordinance or resolution for a period of 120 days from the date the rates or charges would otherwise go into effect or until an order is issued as provided herein.

(2) Upon sufficient showing of discrimination by customers outside the municipal boundaries or a customer or a group of customers within the municipal boundaries under a petition filed under subdivision§24-2-4b(c)(2) (2) or (3),§24-2-4b(c)(3) subsection (c) of this section,code, the commission shall suspend the adoption of the rate change contained in the ordinance for a period of 120 days from the date the rates or charges would otherwise go into effect or until an order is issued as provided herein.

In the case of rates established or proposed that increase by more than 25 percent of the gross revenue of the municipally operated public utility, the utility may apply for, and the commission may grant, a waiver of the suspension period and allow rates to be effective upon enactment.

The hearing examiner shall conduct a public hearing and shall, within 100 days from the date the rates or charges would otherwise go into effect, unless otherwise tolled as provided in subsection§24-2-4b(b) (b) of this section,code, issue an order approving, disapprovingdisapproving, or modifying, in whole or in part, the rates or charges imposed by the electric, natural gas or telephone cooperative or by the municipally operated public utility pursuant to this section.

(f) Upon receipt of a petition for review of the rates under the provisions of subsection§24-2-4b(c) (c) of this section,code, the commission may exercise the power granted to it under the provisions of §24-2-3 of this code, consistent with the applicable rate provisions of §8-10-20 of this code, §8-19-4 of this codecode, and §16-13-16 of this code.

The commission may determine the method by which the rates are reviewed and may grant and conduct a de novo hearing on the matter if the customer, electric, natural gasgas, or telephone cooperative or municipality requests a hearing.

In such cases, the commission shall waive the 45-day waiting period provided for in subsection§24-2-4b(b) (b) of this sectioncode and the 120-day suspension period provided for in subsection§24-2-4b(d) (d) of this section.code.

(j) Notwithstanding any other provision of this code to the contrary, the jurisdiction of the commission over water and/or sewer utilities that are political subdivisions of the state and subject to the provisions of §24-1-1(j) of this code having at least four thousand five hundred customers and annual gross combined revenues of $3 million or more shall be limited to those powers enumerated in §24-2-1(b)of§24-2-1(b) of this code.

(k) Notwithstanding any other provision of this code to the contrary, the jurisdiction of the commission does not extend over the setting and adjustment of the rates, fees, and charges of municipal power systems.

The rates, fees, charges and ratemaking process of municipal power systems shall be governed by the provisions of §8-19-2a of this code.

(a) A public utility, personperson, or corporation other than a political subdivision of the state providing water or sewer services and subject to the provisions of §24-1-1(j) of this code having at least four thousand five hundred customers and annual gross combined revenues of $3 million dollars or more may not begin the construction of any plant, equipment, propertyproperty, or facility for furnishing to the public any of the services enumerated in §24-2-1 et seq.  of this code, nor apply for, nor obtain any franchise, license or permit from any municipality or other governmental agency, except ordinary extensions of existing systems in the usual course of business, unless and until it shall obtain from the Public Service Commission a certificate of public convenience and necessity authorizing such construction franchise, license or permit.

of this code within 180 days after filing of the application:

Provided, That if a substantial protest is received within 30 days after the notice is provided pursuant to subsection§24-2-11(b) (b) of this section,code, the commission shall render its final decision within 270 days or 225 days of the filing of the application, whichever is applicable as determined in subsection§24-2-11(d) (d) of this section.code.

(8) A public service district, or a customer aggrieved by the changed rates or charges who presents to the circuit court a petition signed by at least 750 or 25 percent of the customers served by the public service district, whichever is fewer, when dissatisfied by the approval, modification, or rejection by the county commission of the proposed rates, fees and charges under the provisions of this subsection (l) may file a complaint regarding the rates, fees and charges resulting from the action of, or failure to act by, the county commission in the circuit court of the county in which the county commission sits:

The purpose of this bill is to clarify Public Service Commission jurisdiction over water and sewer utilities owned by political subdivisions;subdivisions.  The bill allows more local review and control over the setting of rates, fees, and charges for municipal electric power systems.  The bill provides for a right of appeal by customers.

establishThe bill establishes uniformity in the class of publications required by municipalities and public service districts for the revision in rates;

  Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.

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