State PSC Can Override City Rate Decision

Abstract

The Supreme Court of West Virginia held that the state Public Service Commission (PSC) had the power to reduce or increase water rates set by a city ordinance. In 1995, Wheeling, West Virginia, adopted higher water rates and charges for its municipally operated water utility. The Ohio County Public Service District (OCPSD) and the village of Bethlehem petitioned the PSC for a review, claiming the rates were discriminatory. In 1996, the PSC adopted a recommendation that the rates for resale customers be increased. The city and OCPSD appealed, arguing in part that the PSC had no jurisdiction over the subject matter. However, the appellate court said state law clearly and unambiguously gives the PSC power to reduce or increase a rate whenever it finds that the existing rate is unjust, unreasonable, insufficient, or unjustly discriminatory or otherwise in violation of any provision of West Virginia law.