Whitmer Water System Takeover
Whitmer is a community of around 100 residents in Randolph County. The Whitmer water utility is managed by a water board called the Whitmer Water Association (WWA). In recent years, Whitmer water rates became insufficient to operate and maintain the system and, in the fall of 2022, the utility’s only two employees resigned, followed by all members of the WWA.
Because Whitmer is unincorporated, the closest unit of local government is the Randolph County Commission. In November of 2022, the commission informed the West Virginia Public Service Commission (PSC) that the community’s water system should be considered distressed or failing.
Under state law, the PSC has the authority to order another water utility to assume responsibility for distressed or failing water systems. In April 2023, the PSC informed the Elkins Water Board that it would eventually be required to take over the Whitmer utility, once the legally mandated process for shifting responsibility is complete.
See our October 2023 press release.
Timeline
- November 14, 2022 – The Randolph County Commission filed a petition to the WV Public Service Commission to consider Whitmer Water Association a Distressed and failing utility.
- May 25, 2023 – The WV Public Service Commission found that Whitmer is a distressed utility and Elkins Is the most suitable capable proximate utility. The PSC then directed Elkins to acquire Whitmer.
- July 13, 2023 – Elkins and Whitmer filed a joint application for an Interim Operating Agreement between Elkins and Whitmer. Since Whitmer Water Association was no longer a corporation in good standing and had no Board, it had to be brought up to the standards of a legal entity to even be able to enter into this Agreement.
- Sept 13, 2023 – the WV Public Service Commission approved interim rates for Whitmer and an Interim Operating agreement between Elkins and Whitmer.
- December 15, 2023 – Elkins sent out the first round of billing processed by Elkins. As an example of the dire financial straits of Whitmer, we received a shut-off notice from First Energy for an electric bill of over $9,000 which had been unpaid for several months.
- January 1, 2024 – Elkins assumed full operations of the Whitmer Water System doing so under the Interim Operating Agreement.
- Feb 1, 2024 – the WV Public Service Commission approved the interim water rates as the final rates and required both parties to close on the purchase agreement.
- On April 30, 2024 – Elkins filed a petition to Reopen the Whitmer and Elkins cases. Elkins determined that unknown and unexpected issues with Whitmer continue to prevent the parties from closing on the purchase agreement. Issues include:
- Whitmer monthly revenue is not sufficient to sustain the operations. Whitmer is only bringing in approximately $4400 per month and the operating expenses are approximately $11,000 per month. As a result, Elkins has incurred about $197,668 to date.
- Unpaid federal and state income taxes from June 30, 2019, to December 31, 2023, Along with legal and account fees are expected to be approximately $200,000.
- Capital Costs – Replace Water Meters, Plant and System Upgrades are projected at $695,739.27
- WDTRF Outstanding Water Fund Bond – remaining balance is $200,917.
- On May 10, 2024 – The WV Public Service Commission Ruled that
- the petition filed on April 30th be reopened
- That the WV IJDC and the WDA approve the request to fund the request of $1,294,325 to the extent that the request qualifies for their funding
- On May 24 representatives from Elkins met with the IJDC and WDA to discuss the possibilities of the request on the PSC Order from May 10th.
- The two entities both agreed that due to various limitations involving grant funding the only item they could help with is the Capital Costs of $695,739.27.
- These entities recommended that we approach the County Commission to help with the remaining expenses.
- Until these expenses are resolved we are essentially at a standstill with the purchase/acquisition agreement.
- Elkins cannot continue to assume these costs that are detrimental to its own customers and system, especially with no path of getting aid or reimbursement.
