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Cheat Mountain Water Company, Inc., a Private Utility

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Cheat Mountain Water Company, Inc., a Private Utility Shuman,McCuskey&’Slicerpuc Attorneys at Law 1411 Virginia Street, East www.shurnanlaw.com 1445 Stewartstown Road, Suite 200 Suite 200 Morgantown, West Virginia 26505 EO. Box 3953 Telephone 304.291.2702 Charleston, West Virginia 25339 Christopher D. Negley, Esq. Facsimile 304.291.2840 Telephone 304.345.1400 Facsimile 304.343.1826 [email protected] August 24,20 17 Ingrid Ferrell Executive Secretary Legal Division Public Service Commission of West Virginia 201 Brooks Street Charleston, West Virginia 25301 ,? ,* Re: Case No. 17- 1.21,$?- p1VP - ik- t c/L: Public Service Commission of West Virginia Application for a Certificate of Convenience and for the construction, operation and maintenance o system improvements and charges, and for approval of financing related thereto Dear Ms. Ferrell: Enclosed herein please find an original and twelve copies of a Joint Petition filed by the Pocahontas County Public Service District (“District”) and Cheat Mountain Water Company, Inc. (“CMW’), whereby the District proposes to purchase the assets of CMW and thereafter provide water services to the approximately 606 former customers of CMW as provided in an Asset Purchase Agreement dated May 25, 2017, and executed among CMW, Snowshoe Mountain, Inc. (“SMI”) and the District (“APA). Further, and pursuant to the APA, the District will acquire from CMW and operate all of CMW’s public utility assets (“CMW Assets”), and also will acquire from SMI certain additional assets owned by SMI that will facilitate District’s operation of the System (“SMI Assets”). The proposed project will take place in the Snowshoe and Silver Creek Resort areas of Pocahontas County. In addition to purchasing the assets of CMW the District proposes to make renovations and improvements to the existing water production, water treatment and water production facilities. These improvements include: electrical service upgrade and miscellaneous repairs at the raw water pump station; providing a spare Raw Water Pump; installing a backup generator at the raw water pimp station; installing fencing at the raw water pump station; installing fencing at WTP, fencing of the backwash basin; fencing at various water supply wells; filter painting and media replacement; connection of emergency generator to WTP; miscellaneous WTP building repairs; replacing valves at WTP; emergency generator for one booster pump station; installing leak detection meters and installing various isolation valves. In 1 the Joint Petition, the District seeks a certificate of public convenience and necessity for these renovations and improvements. The total estimated cost of the project (both acquisition and improvements) is $2,365,700. The approved financing package involves a West Virginia Infrastructure & Jobs Development Council loan in the amount of $$2,109,700 (3% for 20 years) and a commercial loan in the amount of $256,000 (3.95% for five years). The District submits the following documents as required by Rule 26 of the Commission’s Rules ofpractice and Procedure. 26.1 and 26.2. Attached hereto as Checklist Items Nos. 26.1 and 26.2 is the Form #4 Application, signed and notarized by Mark Smith, Chairman, Pocahontas County Public Service District. 26.3 (a) through (g). Attached hereto as Checklist Item 26.3 (a) through (8) is the Pocahontas County Public Service District - Water Department’s Rule 42 Exhibit as of June 30, 2017 including proposed rate structure and existing rate structure. The proposed tariff is based on the CPA’s projections as contained in the Rule 42 Exhibit. 26.4. Not applicable to this filing. 26.5. Attached as Checklist Item 26.5 is a Joint Petition submitted by the District and CMW along with several incorporated documents including an Asset Purchase Agreement which includes Exhibits A (denoting CMW assets) and B (denoting SMI assets) and incorporates three ancillary agreements: Exhibit C (Joint Use Agreement), Exhibit D (Property Exchange and Disposition Agreement) and Exhibit E (Access Agreement.) 26.6. Checklist item 26.6 is contained within the Preliminary Engineering Report (See Checklist Item 26.121. 26.7. Attached as Checklist Item 26.7 is a draft bond resolution 26.8(a) and (b). Attached hereto as Checklist Item 26.8 is email correspondence from Eric Coberly, P.E., the project engineering manager, confirming that no permits will be needed for the acquisition. 26.9.b. Funding Sources. The project calls for both public and private financing. Regarding public financing the full WVIJDC council has approved the project on the terms outlined above. The District will supplement this filing when the binding commitment letter is received. Regarding private financing, the District attaches a Term Loan sheet from Citizen’s Bank of West Virginia for the loan. 26.10. Not applicable to this application, 2 26.11. Attached hereto as Checklist Item 26.11 is the name, classification and operator license number for the plant operators. 26.12 (a) through (1). Attached as Checklist Items 26.12(a) through (1) are two identical CD’s containing the Preliminary Engineering Report completed by E. L. Robinson Engineering Company dated April 2017. The PER addresses these areas: Current Situation Water Treatment and Distribution Future Situation Alternatives Operation & Maintenance Costs and Present Worth Analysis Plan Selection and Public Participation Environmental Information (including) Project Summary Conclusions and Recommendations 26.13(a) through (h). Please see the Preliminary Engineering Report. 26.14(a) through (b). Please see the Preliminary Engineering Report 26.15. Please see the Preliminary Engineering Report. 26.16. Attached as Checklist Item 26.16 is a proposed Form No. 4. Following acceptance by the Commission the District will provide a Word copy of Form No. 4 via email. 26.17. Not applicable to this application as the project has been approved by the West Virginia Infrastructure & Jobs Development Council. 26.18. Not applicable to this application. 26.19. Not applicable to this application. 26.20 See Preliminary Engineering Report. 26.21, See Preliminary Engineering Report 26.22 Not applicable to this application. 26.23 Not applicable to this application. 26.24. Attached is the review for WVIJDC application #2016W-1697 and approved by the full council on June 7, 2017. The District will supplement this application when the binding commitment letter is received. 3 Please include Christopher L. Callas and Nicklaus A. Presley of Jackson Kelly PLLC on the Commission’s service list as counsel for CMW. Thank you for your attention to this matter. Should you have any questions, please do not hesitate to contact me. Yours sincerely, (’ ’1 , CGstopher D. Negley Enclosures cc: Christopher Callas, Esq., Counsel for co-petitioner CMW PSD Board Lloyd Coleman, General Manager John TuggleiLeslie Taylor, Region 4 Tina J. Hall, WVDEP State Revolving FundiManagement Section 4 Form No. 4 APPLICATION FOR A CERTIFICATE OF CONVENIENCE AND NECESSITY State of West Virginia Public Service Commission Charleston CaseNo. 17- Application of the Pocahontas County Public Service District for a certificate of convenience and necessity to purchase the assets of Cheat Mountain Water, Inc., and operate a water utility in the Snowshoe and Silver Creek Areas in the County of Pocahontas. Pocahontas County Public Service District, the applicant herein, respectfully states: 1. The name and address of the applicant are: Pocahontas County Public Service District 14066 Bank Mountain Road Bartow, West Virginia 24920. 2. The applicant proposes to purchase the assets of Cheat Mountain Water, Inc., and thereafter provide water services to the approximately 606 former customers of Cheat Mountain Water, Inc., as provided in an Asset Purchase Agreement dated May 25, 2017, and executed among Cheat Mountain Water, Inc., Snowshoe Mountain, Inc. (“SMI”) and the applicant (“MA”).Further, and pursuant to the APA, the District will acquire from CMW and operate all of CMWs public utility assets (“CMW Assets”), and also will acquire from SMI certain additional assets owned by SMI that will facilitate District’s operation of the System (“SMI Assets”). The service area for the new District’s water service will be the Snowshoe and Silver Creek areas of Pocahontas County, West Virginia. 3. Service is now rendered by an existing utility known as Cheat Mountain Water, Inc., All of its operations are proposed to be sold to the District as a part of the APA. 4. The Public Service Commission, by Recommended Decision dated November 19, 1997 and by Final Order dated December 9, 19997, in Case No. 96-1252-PSWD-PC, recognized, inter alia, the name change of the Upper Greenbrier Public Service District to the Pocahontas County Public Service District. 5. If applicable, the West Virginia Infrastructure and Jobs Development Council Project Number and date of Infrastructure approval: The WVIDJC project number is 2016W- 1697. The proposed project was approved by the WVIJDC N1 council on June 7, 2017. 6. A certificate should be issued for the following reasons: The purchase of these assets by E the PSD combined with its proven ability to provide potable drinking water is the most cost-effective and environmentally sound to address drinking water needs in this area. NOTE: This application must be accompanied by information required by Tariff Rule 42. Water and Sewer utilities must include infomation required by the Checklist set forth in Rule 26 of the Commission's Rules of Practice and Procedure. Mark Smith, Chairman, Pocahontas County Public Service District
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