Logan County Public Service District Holden Water Company Acquisition

LOGANCounrrv PUBLIC SERVICE D/STRICT P.O. Box 506 BOARD MEMBERS: Logan, WV25601 James R. Jeffrey, Chair (304) 946-2641 (TDD) May 26,2006 Ben F: Lowe, JI: Fa(304) 946-2645 Mike Stone E-mail:[email protected] MANAGING ENGINEER: Rick Roberts, I! E.

Sandra Squire, Executive Secretary Public Service Commission of WV 201 Brooks St., P.O. Box 812 Charleston, WV 25323

Re: Logan County Public Service District Holden Water Company Acquisition

Dear Ms. Squire:

Pursuant to WV Code 24-2-1 1, the Logan County Public Service District is submitting the following information and requesting a Certificate of Convenience and Necessity for the referenced acquisition:

1. Original and twelve (12) copies of this cover letter 2. Original and twelve (12) copies of PSC Form 6 3. Thirteen (1 3) copies of the Accounting Exhibit 4. Thirteen (1 3) copies of the Purchase Agreement 5. Thirteen (1 3) copies of the Project Report

If you have any questions or need additional information, do not hesitate to call or write.

Sincerely,

'ue Rick Roberts, P.E. Managing Engineer

LOGAN COUNTY PSD

CRR:mjg

Enclosures: as stated Form No. 6

FORM OF PETITION FOR PURCHASE, LEASE OR OTHERWISE ACQUIRING CONTROL OF ONE PUBLIC UTILITY BY ANOTHER PUBLIC UTILITY

State of West Virginia Public Service Commission Charleston Case No.

Petition of Logan County Public Service District for the consent and approval to the purchase of the assets of the Holden Water Company.

Comes now the above-named Logan County Public Service District, petitioner herein and respectfully shows the Commission as follows:

1. That the name and address of the petitioner are Logan County Public Service District, P.O. Box 506, Logan, WV 25601.

2. That the name and address of the utility whose property, etc., is sought to be acquired are Holden Water Company, Drawer A, Holden, WV 25625.

3. That the financial condition of the petitioner and of the utility whose property, etc., is sought to be acquired is detailed in the attached Accounting Exhibit.

4. That the petitioner desires to purchase the assets of the Holden Water Company at Holden and surrounding areas of Logan County, West Virginia, as follows: Treatment plant, distribution facilities, materials stored, maintenance equipment, tools, etc.

5. The terms and conditions of the sale are detailed in the attached Agreement.

6. The proposed transaction will have the effect of improving the water quality and quantity of the Holden Water System customers. It will increase the rates charged to the Holden customers by approximately 30 percent. The District will benefit through economies of scale from the added customer base. 7. The method of financing for the proposed transaction is a State Grant of $500,000.

8. No utilities other than Logan County Public Service District and the Holden Water Company will be affected by the proposed transaction.

9. The Logan County Public Service District prays that the petition be granted to improve the quality of water service provided to the Holden Water Company customers.

Dated this 26th dayof May, 2006-.

- Signature of authori-zed representative (2f petitioner

Mark E. Kauffelt, Attorney. P.O. Box 3082, Charleston, WV 25331-3082

Subscribed and sworn before me this 26th day of May, 2006.

h a P - .cia1 2ignature and official seal of notarY VERIFICATION

State of West Virginia Public Service Commission Charleston

STATE OF WEST VIRGINIA.

COUNTY OF LOGAN, ss.

I, Rick Roberts, the Managing Engineer of Logan County Public Service District, the

Defendant named in the foregoing PETITION, being duly sworn, says that the facts and allegations therein contained are true, except so far as they are therein stated to be on information, and that, so far as they are therein stated to be on information, I believe them to be true,

before me this the 26th day of May, 2006.

My commission expires on the \ Fk dayof TshK&L ,2007. CERTIFICATE OF SERVICE

I, Rick Roberts, Managing Engineer for Logan County Public Service District, hereby certify that the foregoing PETITION was served upon all parties of record by depositing true and exact copies thereof in the United States Mail, First Class postage prepaid, addressed as follows:

Charles R. Adkins Holden Water Company Drawer A Holden, WV 25625

Mark E. Kauffelt Kauffelt & Kauffelt P.O. Box 3082 Charleston, WV 2533 1-3082 on this the 26th day of May, 2006.

Riik Roberts, P.E., Managing Engineer LOGAN COUNTY PUBLIC SERVICE DISTRICT AGREEMENT

THIS AGREEMENT, made and entered into ths 10th day of May, 2006, by and between the LOGAN COUNTY PUBLIC SERVICE DISTRICT, Post

Office Box 506, Logan, West Virginia 25601, a public corporation and political subdivision of the State of the State of West Virginia organized and existing pursuant to the provisions of West Virginia Code $ 16-13A-1, et seq. (hereafter ‘‘LCPSD”), and

HOLDEN WATER COMPANY, Drawer A, Holden, West Virgmia 25625, a West

Virginia utility and corporation with its principal office and place of business at

Holden, Logan County, West Virginia 25625 (hereafter “Company”).

WHEREAS, Company is the owner and operator of a water treatment, storage and distribution system serving approximately Six Hundred Ninety (690) customers in and around the Holden area of Logan County, West Virgma, (hereafter the ‘Water

System”); and,

WHEREAS, Company is also the owner of certain inventory and equipment used in conjunction with the operation and maintenance of the Water System; and,

WHEREAS, Company is desirous of selling and LCPSD is desirous of buymg the Water System and certain assets udzed by it in connection with the treatment, storage and distribution of potable water to its customers, all as more particularly set

1 forth herein, and all of which is subject to the following terms, limitations and conditions.

WITNESSETH:

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and other good and valuable consideration as contained herein, the parties agree as follows

1. Company hereby agrees to transfer, sell and convey to LCPSD, and

LCPSD hereby agrees to purchase and acquire from Company, upon the terms and conditions hereinafter set forth, the Water Distribution System, including the following:

A. any and all buildings, treatment units, pumps, chemical feed systems, storage tanks, mains, extensions, laterals, valves, hydrants, connections, services, meters, and all other equipment of Company used or useful in the rendition of water service to the customers of the Company in the Holden area of Logan

County, together with all easements, rights of way, permits, rights, franchises, certificates of convenience and necessity, and certain other tangible and intangible assets owned or held by Company, and used or useful in the operation of the Water

2 System, such property including but not limited to those assets specifically described on the Exhibits attached hereto and incorporated herein by reference:

Exhibit 1 -- General Description of Holden Water System

Exhbit 2 -- Tangible and Intangible Personal Property, including Inventory

Exhibit 3 -- Real Property, Including Leaseholds, Rights of Way and Other

Easements

2. In consideration of all of the aforesaid assets to be conveyed and transferred to LCPSD by Company, pursuant to Paragraph No. 1 herein, LCPSD agrees to pay to Company, and Company agrees to accept from LCPSD, for all items mentioned in Paragraph No. 1, the sum of One Hundred Ninety Thousand Dollars

($190,000.00), less any indebtedness to any creditors as may be disclosed by an examination of the records in the Office of the Clerk of the County Commission of

Logan County, West Virginia. Company will be fully responsible for payment of any such indebtedness; however, LCPSD and Company agree that any such sums of indebtedness which are filed of record may be withheld at closing by LCPSD to ensure payment of the same. If there exist any indebtedness of Company on any of the assets to be conveyed to LCPSD, Company agrees to disclose documentation of all such indebtedness and keep current all debt principal and interest payments through the date of closing.

3 3. Company will provide appropriate documentation of interim water

collections to LCPSD, and, addtionally, Company agrees to make all accounts receivable

records and customer repayment agreements avdable for inspection by LCPSD during

normal business hours.

4. Company agrees that it d not purchase any vehicles or equipment or

execute any contracts for the Water System without the express written consent of

LCPSD after the date of execution of thts Agreement, which consent shall not be

unreasonably withheld, except as may be required in the ordinary course of business up

to the date of closing or expiration of tlvs agreement, whichever comes first.

5. Company warrants and represents unto LCPSD that all of the assets to be

sold and delivered to LCPSD pursuant to the provisions of Paragraph No. 1 herein are

located in Logan County, West Virgma. Company agrees that it will not remove or

dispose of any of such property without the express written consent of LCPSD, except

as may be required in the ordinary course of business up to the date of delivery of

possession of the assets to LCPSD.

6. Company further agrees to grant, transfer, convey and assign to LCPSD all warranties, express or implied, relating to the tangible personal property and inventory

to be transferred to LCPSD, hereunder, and wiU provide to LCPSD all written

documentation of said warranties and guarantees.

4 7. Company warrants and represents to LCPSD as follows:

a. Company is a duly organized utdity and corporation, vahdly existing and in good standing under the laws of the State of West Virgma.

b. Charles R. Adkins is the duly elected and current President of

Company and has the full right, power and authority from said corporation to enter into thrs Agreement on behalf of Company, to sell the assets on behalf of Company, and to execute on behalf of Company any and all other documents as may be necessary to consummate this transaction.

c. Company has or d have good and marketable title, by the date of closing, to all of the tangible personal property and inventory to be transferred hereunder, subject to no liens, restrictions, encumbrances or security interests except as may be specifically set forth herein.

d. The sale of the assets of Company hereunder d not conflict with or result in a breach of the terms of any agreement or other instrument to which

Company is a party or by which it is, or may be, bound or which would constitute a default thereunder, or result in the creation or imposition of any lien, charge or encumbrance on, or to give to any hdparty any interest or right of any of the aforesaid assets of Company.

5 8. LCPSD represents and warrants to Company as follows:

a. LSPSD is a public corporation and political subdivision of the State of West Virginia.

b. James R. Jeffrey is the duly elected and current Chqerson of

LCPSD and has the fill right, power and authority from LCPSD to enter into thls agreement on behalf of LCPSD, to purchase the assets on behalf of LCPSD and to execute on behalf of LCPSD any and all other documents as may be necessary to consummate this transaction.

c. The purchase of the assets of Company by LCPSD hereunder wdl not conact with or result in a breach of the terms of any agreement of other instrument to which LCPSD is party or by which it is, or may be, bound or which would constitute a default thereunder; and

d. The members of the board of LCPSD have duly. adopted resolutions authorizing and approving the execution, delivery and performance of this

Agreement by LCPSD and copies of such resolutions will be delivered by LCPSD to

Company at closing.

9. The board of directors and stockholders of Company have duly adopted resolutions authorizing and approving the execution, delivery and performance of this

Agreement by Company, and certified copies of such resolutions wdl be delivered by

Company to LCPSD at closing.

G 10. Company warrants that there are no present or anticipated filings of any mechanic's liens or materialman's liens against any of the assets of Company to be transferred hereunder, and that Company agrees to indemnify and hold harmless

LCPSD as a result of any expenses, or costs, including reasonable attorney fees, as may be necessary in order to remove any such liens imposed upon the assets transferred herein, by reason of any matter occurring prior to closing.

11. The parties agree that Company will be Myresponsible for payment of any premiums or other charges due any agency (i.e. West Virgma Department of Tax and Revenue, West Virgha worker's compensation coverage prickstreet Insurance),

West Virgima Unemployment Compensation, etc.), as well as any benefits and obligations for all of its past and present owners, officers and employees, up to the date of closing. Any claim made for worker's compensation coverage or benefits by such employees in respect to matters occurring prior to closing, whether for temporary total disability, permanent total disability, death, reopenings or dxxwise shall be the sole and exclusive responsibility of Company, and Company agrees to hold harmless and indemnify LCPSD as a result of any such claims by past or present owners, officers and employees of Company.

12. The parties agree that Company d be solely responsible for all retirement and/or pension related plans and funds maintained by it for its owners, officers and employees, past and present, and LCPSD wiU have no obligation or responsibility in any

7 manner with regard to the maintenance, investment, distribution or payment of any such pension or owner, officer or employee retirement plans or funds.

13. Company understands that LCPSD, in entering into this Agreement, does not intend to use, employ or hire any of Company’s officers, agents or employees and that LCPSD does not accept any responsibility for any contractual or legal obligations which Company might have to any officers, agents or employees.

14. Company warrants that there are no present actions, suits, claims or other proceedings, litigation or investigations pending or threatened against Company, its properties and assets, by any person, firm,corporation or governmental entity which would have a material adverse effect upon the business of Company or the consummation of the transaction contemplated herein.

15. Company warrants that it possesses all of the permits and licenses necessary for the operation of the Water System, and that all of said permits and licenses are in full force and effect, without any material violations thereof.

16. Company warrants that the assets, liabilities and financial condition of its operations are accurately reflected upon that certain Annual Report submitted by

Company to the Public Service Commission of West Virginia (“PSC”) for its tax year ended December 31,2005, a copy of which will be provided to LCPSD prior to closing, and there has not been a material adverse change in the financial condition of Company since December 31,2005.

8 17. The parties specifically agree that all warranties and representations contained herein shall survive the closing of this transaction.

18. The parties specifically agree that LCPSD d assume only those obligations, debts or liabilities of Company as expressly set forth herein. All other obligations, debts and liabilities of Company that are not set forth herein shall remain the sole obligation of Company and shall not be binding in any manner or enforceable against LCPSD.

19. Company agrees to indemnify and hold harmless LCPSD and its hectors, agents and employees from any and all claims, demands, damages, costs and expenses arising out of any act or omission relating to the use, condition or operation of any tangible personal property or inventory to be transferred pursuant to hsAgreement and which occurs prior to the closing, for a period of one hundred twenty (120) days from and after the date of closing of this transaction.

20. Company and LCPSD each represent to the other that neither has dealt with any broker in such a manner as to incur any liabdity for any commission, fee or compensation whatsoever in connection with this transaction, and each agrees to indemnify the other against any loss, cost or expense resulting from any such claim as may result from dealing with a broker.

9 21. Company and LCPSD agree that there are no covenants, conditions or restrictions that would impair or interfere in any way with the sale contemplated herein by Company and the purchase contemplated herein by LCPSD.

22. All assets to be sold hereunder by Company are sold as part of the consideration for the total price hereinabove stated, and are to be sold without encumbrances of any type or kind whatsoever. Company shall provide a full and complete statement of all Uniform Commercial Code (UCC) indexing statements on any of the subject personal propeq upon execution of this Agreement, if any. In the event that there are encumbrances of any type or kind on any of said personal property to be transferred herein, Company shall remove the same prior to closing of the transaction or

LCPSD may remove the same at the expense of Company.

23. Company agrees that the LCPSD and the PSC shall have the right to , inspect the business records at the office of Company during normal business hours prior to consummation of hstransaction and wlll further represent that, to the best of its knowledge, the same are true, accurate and correct.

24. Between the date hereof and the closing date, Company will provide

LCPSD with a complete list of all of the water customers of the Water Distribution

System, which list shall include the name of the customer, the mailing address of the customer, the telephone number of the customer and the type of service (residential, commercial, wholesale, etc.) being provided to the customer.

10 25. Between the date hereof and the closing date, LCPSD shall have the right to examine, and to obtain copies of, all books and records of Company relating to the Water System and its assets being conveyed under this Agreement and to inspect and inventory the utility assets, includmg the physical plant and all equipment, materials, supplies, spare parts, etc., of Company. In the event the transactions contemplated by this agreement are not consummated, all of such copies and inventories shall be returned to Company. If, prior to the closing date, (i) any material discrepancies are discovered in the books and records of Company, (ii) any claims, liabilities, liens, encumbrances or defects in title which would materially affect the value of the assets conveyed by this Agreement are discovered by, or disclosed to,

LCPSD, or (iii) any one of the representations and warranties set forth by Company in this Agreement is determined by LCPSD not to be true and correct, then, in that event, LCPSD may, at its sole option, terminate this Agreement, and neither LCPSD nor Company shall be further obligated hereunder or incur or be liable for any claim, loss, damages or expenses to the other as a result of such termination.

26. The parties agree that Company will be solely responsible for any taxes or other financial obligations that may be imposed upon it as a result of the sale of the assets, and any other taxes including, but not limited to, state, federal and municipal taxes, withholding taxes, employment taxes, social security taxes (FICA), licenses and fees lawfully imposed upon it and attributable to any period through closing.

11 27. Within a week prior to the closing date, Company wlll provide LCPSD with a current list of the names and addresses of all customers of the Water

Distribution System. On the closing date, and for the next several days thereafter as may be necessary, Company meter readers, accompanied by LCPSD meter readers, d read all meters of Company's customers served by the Water System and provide copies of those meter readings to both parties. Company wlll bdl all customers for water service as reflected by the final meter reading. LCPSD will thereafter perform all meter readings and be entitled to charge such rates and collect such revenue as approved by the PSC.

28. Company agrees to transfer and deliver to LCPSD all sums of money owed by the Company to customers as of closing for customer security deposits, including all appropriate customer deposit records and receipts on the date of closing.

29. The parties hereto understand and agree that this Agreement and the obligations of the parties hereunder, are expressly conditioned upon the following, each of which is a condition precedent to the validity and enforceability of this

Agreement:

A. This Agreement shall be duly approved by the Board of

Commissioners of LCPSD.

B. The transfer of the Water System from the Company to LCPSD shall be duly approved by the Logan County Commission.

12 C. The PSC shall have entered a final, non-appealable Order which approves this Agreement, and all of its terms, conditions, undertakings, agreements, and limitations, between LCPSD and Company.

D. The PSC shall have entered a final, non-appealable Order which dismisses, with prejudice, all existing formal complaints in PSC Case No. 05-0900-W-

C, Rosemary Elmore v. Holden Water Company.

E. The PSC shall have entered a final, non-appealable Order which establishes rates to be charged by LCPSD to the customers of the Company which in the sole opinion of LCPSD are adequate to generate the additional and adequate revenues to pay increased operation and maintenance costs of the Water System, debt service, fund required reserve accounts and other expenses which may become evident.

F. The PSC shall not have attached to its Order(s) any terms, conditions, or limitations whrch, in the sole opinion of either Company or LCPSD, shall adversely affect the economic feasibility of this project or the existing LCPSD

Water Operations or the Agreement between the parties or require Company or

LCPSD to take any action or refrain from takmg any action which might require either of them to breach any of their obligations under any deed of trust or other written financial and legally binding obligation, or any other agreement to which either of them might be a party. Any condition, modification or restriction of any part of this

13 transaction, imposed or requested by the PSC as a condition of its approval of the sale, must be agreed to in writing by both parties before it becomes binding on either party.

Fdure by either party to agree to any such condrtion, modtfication or restriction shall not be considered a default under, or breach of, this Agreement and either party may, upon notice to the other party, terminate this Agreement if such party should not agree with such condition, modification or restriction as proposed by the PSC.

G. Receipt by LCPSD of adequate grant funding of not less than Five

Hundred Thousand Dollars ($500,000.00) from any source or sources sufficient to provide for the payment in full of the purchase price contemplated herein and payment of costs associated with the design and construction of an emergency connection of

LCPSD and the Company’s water systems and certain costs associated with design of a replacement project to serve the customers of the Company. It shall not be considered an act of default by LCPSD if after using its best efforts to obtain the necessary funding to purchase Company and the assets contemplated herein that such financing does not develop in full.

30. As soon as reasonably practical after the execution of this Agreement by both parties, LCPSD and Company agree to file and prosecute with dlligence a joint application with the Commission seekmg approval of the proposed transfer of the

Water Distribution System to Company and to take all appropriate steps to further seek approval from the Logan County Cornmission.

14 31. Closing of the transaction contemplated by this Agreement shall take place within one hundred eighty (180) days of execution of this Agreement by both parties. If the closing of this transaction fails to occur within said time period of one hundred eighty (180) days, this Agreement shall be null and void and of no further force and effect, and both parties will be restored to their status as if this Agreement had never been contemplated or prepared. Upon mutual agreement of LCPSD and

Company, the time of closing may be extended.

32. This Agreement, and the terms and conditions hereof, shall inure to the benefit of and be binding upon the successors and assigns of each of the respective parties hereto.

33. This Agreement contains the entire agreement between the parties. No promise, representation, warranty or covenant not included in this Agreement has been or is being relied upon by either party. Each party has relied upon its own examination of the full Agreement and the provisions hereof, and the counsel of its own advisors, and the warranties, representations and covenants expressly contained in the Agreement itself. No modification or amendment of this Agreement of Sale shall be of any force or effect unless in writing duly executed by both parties.

15 34. In the event that this transaction fads to close due to a refusal or default on

the part of Company, then and in such event, at the option of LCPSD, LCPSD may pursue its rights against Company, by virtue of the refusal and default of Company,

either at law or in equity, including, but not limited to, the right of specific performance.

35. In the event that this transaction fads to close due to a refusal or default on

the part of LCPSD, then and in such event, at the option of Company, Company may pursue its rights against LCPSD, by virtue of the refusal and default of LCPSD, either at

law or in equity, including, but not limited to, the right of specific performance.

36. Both parties specifically acknowledge, understand and agree that it shall

not be considered an act of default by either party if the PSC does not authorize and

approve the sale as contemplated herein.

37. The parties specifically agree that the sale of the assets of Company is not a

sale or purchase of any shares of stock of Company.

WITNESS the following signatures and seals.

HOLDEN WATER COMPANY, a West Virgma corporation,

ITS: President

16 LOGAN COUNTY PUBLIC SERVICE DISTRICT, a public corporation and political subdivision of the State of West Virpa,

ITS: Chaimerson

STATE OF WEST VIRGINIA,

COUNTY OF LOGAN, TO-WIT:

-Ll\in&- , a Notary Public in and for the County and I, ha r.CL \\ State aforesaid, do hereby certify that Charles R. Adkins, President of HOLDEN

WATER COMPANY, a West Virpa utthty and corporation, whose name is signed to the foregoing Agreement, dated the 10th day of May, 2006, has this day acknowledged the same before me in my said county on behalf of said corporation, Given under my hand this 2’1* day of hW2 ,2006.

NOTARY PUBLIC

NOTARY SEAL 17 STATE OF WEST VIRGINIA,

COUNTY OF LOGAN, TO-WIT:

1, &-Qt$$J .?&!at&/ s# , a Notary Public in and for the County and State aforesaid, do hereby certify that James R. Jeffrey, Chairperson of the

LOGAN COUNTY PUBLIC SERVICE DISTRICT, a public corporation and

political subdivision of the State of West Virgima, whose name is signed to the foregoing

Agreement, dated the 10th day of May, 2006, has this day acknowledged the same

before me in my said county on behalf of said public service district.

Given under my hand this /a& day of -&> ,2006.

My commission expires:

NOTARY PUBLIC

NOTARY SEAL

THIS INSTRUMENT PREPARED BY

JAMES A. WALKER (WV Bar #3901) Attorney At Law Walker Building 218 Stratton Street Post Office Box 358 Logan, West Virginia 25601 (304) 752-0757

18 EXHIBIT 1

GENERAL DESCRIPTION OF THE HOLDEN WATER SYSTEM ASSETS USED AND USEFUL IN RENDERING WATER SERVICE IN AND AROUND HOLDEN, LOGAN COUNTY, WEST VIRGINIA

Except as otherwise noted in this Agreement and the Exhibits thereto, all of the assets, whether now owned or acquired prior to the Closing Date, constituting all of the Water System serving the communities of Holden, Wlutman Junction, Trace Junction, Beebe, Frogtown, Sycamore, Diamond, Davis, Sulphur Springs and surrounding areas of Logan County, West Virginia, including the land, rights-of-way, easements and all other interests in said real estate, together with all improvements thereon and all appurtenances thereunto belonging, and any and all permits, licenses, franchises, personal property, treatment plant, booster stations, storage tanks, distribution lines and mains of every kind and description (including approximately 67,300 feet of pipeline), extensions, laterals, valves, connections, services, meters, fire hydrants, and any and all repair materials and supplies, and all other assets that are necessary, needed and incidental to operating he Holden Water System.

19 EXHIBIT 2

TANGIBLE AND INTANGIBLE PERSONAL PROPERTY

All other tangible and intanglble personal property, including the property listed below and all licenses, franchses or permits, used or useful in rendering water service to the persons and entities in and near the communities of Holden, Whitman Junction, Trace Junction, Beebe, Frogtown, Sycamore, Diamond, Davis, Sulphur Springs and surrounding areas of Logan County, West Virginia:

Holden Water Treatment Plant

1. Raw Water Pumping Station w/Building, Pump, Controls, etc. 2. Gravity Aerator 3. 100,000 Gallon Settling Basin 4. 2-200 GPM Mixed Media Gravity Filters 5. 36,000 Underground Clearwell 6. Treatment Plant Building 7. 480 GPM Allis Chalmers High Service Pump 8. 320 GPM Dayton Dowd Backup High Service Pump 9. Chlorination System w/Regal Chlorinator 10. pH Adjustment System (Custic Soda) 11. Treatment Chemical Inventory 12. Repair Parts Inventory

Bunealow Woods Pum~in~Station

1. Brick Building 2. 2-50 GPM Myers Pumps 3. Controls, Electrical, Piping, Etc.

Lower Trace PumDinP Station

1. BlockBuilding 2. 2-25 GPM Grundfos Pumps 3. Controls, Electrical, Piping, Etc.

20 Storape Tanks

1. 250,000 Gallons Main Storage Tank 2. 20,000 Gallons Bungalow Woods Storage Tank 3. 15,000 Gallons Trace Fork Storage Tank 4. Misc. Piping, Valves, Controls, Etc.

Water Distribution Svstem

1. 650 feet of 8-inch Cast Iron Mains 2. 8,980 feet of 6-inch Cast Iron and Plastic Mains 3. 22,370 feet of 4-inch Cast Iron, Galvanized and Plastic Mains 4. 5,405 feet of 3-inch Galvanized and Plastic Mains 5. 16,120 feet of 2-inch Galvanized and Plastic Mains 6. 13,770 feet of lY2 - 1 inch Galvanized and Plastic Mains 7. 717 Service Connections 8. 706 5/8 - 2 inch Water Meters 9. 35 Fire Hydrants 10. Valves, Blowoffs and Appurtenances 11. Misc. Distribution Spare Parts Inventory

1. 1982 Ford 555 Backhoe Loader 2. 1'/2 - inch Electric Grundfos Trash Pump 3. OxygenlAcetelene Set 4. Pal Demolition Saw 5. Miscellaneous Hand Tools

21 EXHIBIT 3

REAL PROPERTY, INCLUDING LEASE HOLDS, RIGHTS OF WAY AND OTHER EASEMENTS, AND OTHER INTERESTS IN REAL ESTATE

Except as noted in the Agreement or the Exhibits thereto, all of the real property and interests in real property, together with the water franchises, rights, easements, rights-of-way, leases, and other licenses, permits or agreements held by the Holden Water Company under which any and all of said water utility property of the Holden Water Company is held and operated for the benefit of the customers of the Holden Water System including specifically, but without limiting the generality of this description, the properties and property interests hereafter referred to, owned by the Holden Water Company:

1. All easements and rights-of-way conveyed to Holden Water Company from Island Creek Coal Company by deed dated October 1,1947, whch deed is recorded in the Office of the Clerk of the County Commission of Logan County, West Virgha, in Deed Book No. 192, at Page 413.

2. That certain parcel of real estate conveyed to Holden Water Company from Island Creek Coal Company by deed dated October 1, 1947, which deed is recorded in the Office of the Clerk of the County Commission of Logan County, West Virpa, in Deed Book No. 192, at Page 409.

3. That certain parcel of real estate conveyed to Southern Public Service Company from Georgia Pacific Corporation by deed dated March 4, 1993, which deed is recorded in the Office of the Clerk of the County Commission of Logan County, West Virginia, in Deed Book No. 495, at Page 104.

4. That certain water plant, tanks, pumps, etc. that were transferred from Island Creek Coal Company to Holden Water Company by Bill of Sale dated October 1, 1947, which is recorded in the Office of Clerk of the County Commission of Logan County, West Virpa, in Appraisement and Sale Bill Book No. 8, at Page 179.

5. That certain water storage tank site and all easements attendant thereto as described in a deed dated March 4, 1993, from Georgia Pacific Corporation to Southern Public Service Company, which deed is recorded in the Office of Clerk of the County Commission of Logan County, West Virginia, in Deed Book No. 495, at Page 104.

22 LOGAN COUNTY PUBLIC SERVICE DISTRICT

HOLDEN WATER COMPANY ACQUISITION PROJECT

RULE 42 EXHIBIT

MAY 25,2006

BASED ON THE FISCAL YEAR ENDED JUNE 30,2005

Prepared By: William Baisden, CPA, Assistant Manager Logan County Public Service District P.O. Box 506 Logan, WV 25601 Phone: (304) 946-2641 Fax: (304) 946-2645 LOGANCOUNTY PUBLIC SERVICE DISTRICT PO. Box 506 BOARD MEMBERS: 1 Logan, WV25601 James R. Jeffrey, Chair (304) 946-2641 (TDD) Ben F: Lowe, JI: Fax (304)946-2645 Mike Stone E-mail: [email protected] May 25,2006 MANAGING ENGINEER: I Rick Roberts, RE.

Public Service Commission of West Virginia 201 Brooks Street Charleston, WV 25301

Re: Logan County Public Service District Holden Water Company Acquisition Project Rule 42 Exhibit

Dear Commissioners:

This report is a compilation of financial information as prescribed by Rule 42 of the Public Service Commission of West Virginia Rules of Practice and Procedure for the Filing of Tar#s and is the basis for rate justification for the above referenced project. I have prepared this report based on information from the District’s financial records for the fiscal year ended June 30,2005, adjusted for going level changes, and added engineering estimates for the proposed project. I have also used billing information provided by the Holden Water Company for the calendar year ended 2005.

This filing is to request approval from the Commission for the Logan County Public Service District to acquire the Holden Water Company. The cost of the project is estimated at $700,000. Anticipated funding consists of a state grant of $500,000 and a design loan of $200,000 from the WV Infrastructure Fund at zero (0) percent interest for 20 years.

The Logan County Public Service District’s current rate structure consists of a minimum charge of $16.93 per month and $8.47 per 1,000 gallons for the first 2,000 gallons, $8.1 1 per 1,000 gallons for the next 58,000 gallons, $5.98 per 1,000 for the next 240,000 gallons, and $3.13 per 1,000 gallons for any gallons over 300,000. The District’s current customers would not experience any change in their rates.

The Holden Water Company’s current rate structure consists of a minimum charge of $15.16 per month and $7.58 per 1,000 gallons for the first 2,000 gallons, $5.99 per 1,000 gallons for the next 2,000 gallons, $4.89 per 1,000 gallons for the next 6,000 and $4.25 per 1,000 gallons for any gallons over 10,000. The District is proposing to apply its current rates to the 680 customers of the Holden Water System to meet operation and maintenance expenses of the system. Additionally, the District is proposing to add a $1.25 per bill per month surcharge to the Holden customers to fund debt service of the design loan previously mentioned. This surcharge would be applied to the Holden customers only and be in effect for the term of the loan.

Under this scenario, Holden customer’s minimum bill would be $1 8.1 8, which is an increase of approximately 20% over their existing rates. The charge for 4,500 gallons under the new tariff would be $38.47, which is an increase of approximately 30% over Holden’s existing tariff.

This report provides sufficient justification that no increase in rates is required for the District’s existing customers for this project. It also provides justification to apply the new rates to the Holden water customers to meet operation and maintenance costs of the system.

We hereby submit this exhibit for filing. If you need any additional information or have any questions, please let me know.

Assistant Manager LOGAN COUNTY PUBLIC SERVICE DISTRICT HOLDEN WATER COMPANY ACQUISITION RULE 42 EXHIBIT

TABLE OF CONTENTS

STATEMENT PAGE NUMBER NUMBER

INTRODUCTION LETTER

A STATEMENT OF NET INCOME 1

A- 1 OPERATING REVENUES 2

A-2 OPERATION AND MAINTENANCE EXPENSES 3-5

A-3 DEPRECIATION EXPENSE 6

A-4 TAXES OTHER THAN INCOME TAXES 7

A-6 OTHER INCOME 8

A-7 OTHER INCOME DEDUCTIONS 9

B PLANT IN SERVICE 10

B-10 CONTRIBUTIONS IN AID OF CONSTRUCTION 11

C DETAIL OF DEBT 12

D BILL ANALYSIS 13-16

D- 1 CURRENT TARIFF-LOGAN COUNTY PSD 17-18

D-2 CURRENT TARIFF-HOLDEN WATER COMPANY 19

D-3 PROPOSED TARIFF 20-22

G DETAIL OF ADJUSTMENTS 23-26

H CASH FLOW ANALYSIS 27 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement A Statement of Net Income Based on Fiscal Year Ended June 30,2005

Going Per Per Books Per Books Level Going Pro Forma Pro Description Reference Books Adiustments Adiusted Adiustments Level Adiustments Forma

Operating Revenues Schedule 1 3,999,062 3,999,062 89,280 4,088,342 305,667 4,394,009

Operating Revenue Deductions Operation and Maintenance Expenses Schedule 2 2,348,119 2,348,119 3,912 2,352,031 270,054 2,622,085 Depreciation & Amortization Schedule 3 823,976 823,976 823,976 823,976 Taxes Schedule 4 68.23 1 68.23 1 68,23 1 9.949 78.180 Total Operating Expenses 3,240,326 3,240,326 3,912 3,244,238 280,003 3,524,241

Other Income Schedule 6 10,244 10,244 10,244 10,244

Other Income Deductions Schedule 7 477,436 477,436 (60,656) 416,780 416.780

Net Income (Loss) 291.544 29I.544 146.024437.568 2ua463.232

Page 1 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement A Schedule 1 Detail of Operating Revenues Based on Fiscal Year Ended June 30,2005

Going Per Per Books Per Books Level Going Pro Forma Pro DescriDtion -Books Adiustments Adiusted Adiustments -Level Adiustments Forma Water Sales 3,785,356 3,785,356 87,042 (1) 3,872,398 298,006 (5) 4,170,404

Forfeited Discounts 97,307 97,307 2,238 (2) 99,545 7,661 (6) 107,205 Miscellaneous Operating Revenues 116.399 116,399 116,399 116,399

Total Operating Revenues 3.999.062 3.999.062 EL?aQ 4.088.342 305.667 4,394.008

Penalty YO 2.5706% 2.5706% 2.5706% 2.5706% 2.5706% 2.5706%

Page 2 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement A Schedule 2 Detail of Operating Expenses Based on Fiscal Year Ended June 30,2005 Going Acct Per Per Books Per Books Level Going Pro Forma Pro No. Description Books Adjustments Adjusted Adjustments Level Adjustments Forma 600 Source Operation Supervision and Engineering 601 Source Operation Labor and Expenses 602 Purchased Water 195,576 195,576 195,576 195,576 603 Source Miscellaneous Expenses 606 606 606 606 604 Source rents 6 10 Source Maintenance Supervision and Engineering 61 1 Source Maintenance of Structures and Improvements 612 Source Maintenance of Collecting and Impounding Reservoirs 613 Source Maintenance of Lake, River and Other Intakes 614 Source Maintenance of Wells and Springs 615 Source Maintenance of Infiltration Galleries and Tunnels 616 Source Maintenance of Supply Mains 617 Source Maintenance of Miscellaneous Water Source Plant Total Source of Supply System Expenses 196,182 196,182 196,182 196,182

620 Pumping Operation Supervision and Engineering 621 Pumping Fuel for Power Production 622 Power Production Labor and Expense 623 Fuel or Power Purchased for Pumping 202,764 202,764 1,920 (3) 204,684 18,890 (7) 223,574 624 Pumping Labor and Expenses 25,279 25,279 25,279 25,279 625 Expenses Transferred - Cr. 626 Pumping System Miscellaneous Expenses 11,275 11,275 11,275 11,275 627 Pumping System Rents 630 Pumping System Maintenance Supervision and Engineering 63 1 Pumping System Maintenance of Structures and Improvements 46 1 46 1 46 1 46 1 632 Pumping System Maintenance of Power Production Equipment 633 Pumping System Maintenance of Pumping Equipment 34,112 34,112 34,112 34,112 Total Water Pumping System Expenses 273,891 273,891 1,920 275,811 18,890 294,701

640 Treatment Operation Supervision and Engineering 641 Chemicals 83,338 83,338 83,338 7,000 (8) 90,338 642 Treatment Operation Labor and Expenses 164,866 164,866 164,866 36,450 (9) 201,316 643 Treatment Miscellaneous Expenses 52,882 52,882 52,882 52,882 644 Treatment Rents 650 Treatment Maintenance Supervision and Engineering

Page 3 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement A Schedule 2 Detail of Operating Expenses Based on Fiscal Year Ended June 30,2005 Going Acct Per Per Books Per Books Level Going Pro Forma Pro No. Description Books Adjustments Adjusted Adjustments Level Adjustments Forma 65 1 Treatment Maintenance of Structures and Improvements 347 347 347 347 652 Maintenance of Water Treatment Equipment 21,439 21,439 21,439 21,439 Total Water Treatment Expenses 322,872 322,872 322,872 43,450 366,322

660 Transmission and Distribution Supervision and Engineering 14,787 14,787 14,787 14,787 661 Storage Facilities Expenses 8,772 8,772 8,772 540 (10) 9,3 12 662 Transmission and Distribution Lines Expenses 663 Meter Expenses 664 Customer Installations Expenses 665 Transmission and Distribution Miscellaneous Expenses 48,387 48,387 48,387 48,387 666 Transmission and Distribution Rents 500 500 500 500 670 Transmission and Distribution Maintenance Supervision and Engineering 14,787 14,787 14,787 14,787 671 Transmission and Distribution Maintenance of Structures and Improvements 672 Maintenance of Distribution Reservoirs and Standpipes 673 Maintenance of Transmissionand Distribution Mains 91,627 9 1,627 9 1,627 74,880 (11) 166,507 674 Maintenance of Fire Mains 675 Maintenance of Services 90,780 90,780 90,780 90,780 676 Maintenance of Meters 19,819 19,819 19,819 19,819 677 Maintenance of Hydrants 8,75 1 8,751 8,751 8,75 1 678 Maintenance of Miscellaneous Plant 156,559 156,559 156,559 36,000 (12) 192,559 Total Transmission and Distribution System Expenses 454,769 454,769 454,769 111,420 566,189

901 Customer AccountdSupervision 88,350 88,350 88,350 18,720 (13) 107,070 902 Meter Reading Expenses 43,974 43,974 43,974 43,974 903 Customer Records and Collection Expenses 6 1,498 6 1,498 61,498 7,640 (14) 69,138 904 Uncollectible Accounts (1,055) (1,055) (1,055) (1,055) 905 Miscellaneous Customer Accounts Expenses 1,333 1,333 1,333 1,333 907 Customer Service and Information Expenses 910 Sales Promotion Expenses Total Customer Accounts Expenses 194,100 194,100 194,100 26,360 220,460

920 Administrative and General Salaries 116,485 116,485 116,485 116,485 921 Office Supplies and Other Expenses 59,974 59,974 59,974 470 (15) 60,444 922 Administrative Expenses Transferred - Cr. 923 Outside Services Employed 33,180 33,180 33,180 150 (16) 33,330

Page 4 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement A Schedule 2 Detail of Operating Expenses Based on Fiscal Year Ended June 30,2005 Going Acct Per Per Books Per Books Level Going Pro Forma Pro No. Description Books Adjustments Adjusted Adjustments Level Adjustments Forma 924 Property Insurance 73,849 73,849 73,849 73,849 925 Injuries and Damages 38,096 38,096 38,096 38,096 926 Employee Pensions and Benefits 480,487 480,487 480,487 60,354 (17) 540,841 927 Franchise Requirements 928 Regulatory Commission Expenses 13,316 13,316 13,316 1,050 (18) 14,366 929 Duplicate Charges - Cr. 930.1 Institutional or Goodwill Advertising Expenses 2,600 2,600 2,600 2,600 930.2 Miscellaneous General Expenses 86,495 86,495 86,495 7,910 (19) 94,405 930.3 Research and Development Expenses 93 1.0 Administrative and General Rents 932.0 Maintenance of General Plant 1,822 1,822 1,822 1,822 Total Administrative and General Expenses 906,304 906,304 906,304 69,934 976,238

Total Water Operation and Maintenance Expenses 2,348,118 2,348,118 1,920 2,350,038 270,054 2,620,092

Page 5 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement A Schedule 3 Depreciation, Depletion and Amortization Based on Fiscal Year Ended June 30,2005

Description Rates

Structures and Improvements Transmission & Distribution System Structures 2.5 - 10% Pumping System Structures 2.4 - 4% General Plant Structures 4- 10% Treatment Plant

Plant and Equipment Service Connections and Accessories 2.5 - 4% Transmission Mains and Accessories 2.5 - 4% Distribution Equipment and Accessories 2.5 - 4% Other Equipment 2.5%

Pumping System Plant and Equipment : Electric Pumping Equipment 4- 10%

General Plant: Office Equipment 10 - 20% Transportation Equipment 20% Tools and Shop Equipment 10 - 20% Miscellaneous General Plant 20%

Total Water Plant 55,013,241

Total Depreciation 823,976

Page 6 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement A Schedule 4 Taxes Other Than Income Taxes Based on Fiscal Year Ended June 30,2005

Going Per Per Books Per Books Level Going Pro Forma Pro Description Books Adjustments Adjusted Adjustments Level Adjustments Forma

Taxes Other Than Income Taxes: Other Taxes Payroll Taxes 68,23 1 68,23 1 68,23 1 9,949 (20) 78,180

Total Taxes Other Than Income Taxes 68,23 1 68,23 1 68,23 1 9,949 78,180

Page 7 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement A Schedule 6 Other Income Based on Fiscal Year Ended June 30,2005

Going Per Per Books Per Books Level Going Pro Forma Pro Description Books Adjustments Adjusted Adjustments Level Adjustments Forma

Other Income: Interest Income 10,244 10.244 10,244 10,244

Total Other Income 10,244 10,244 10,244 10,244

Page 8 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement A Schedule 7 Other Income Deductions Based on Fiscal Year Ended June 30,2005

Going Per Per Books Per Books Level Going Pro Forma Pro Description Books Adjustments Adjusted Adjustments Level Adjustments Forma

Other Income Deductions: Interest on Long term Debt 462,227 462,227 (21,735) (4) 440,492 440,492 Other Interest Expense Total Other Income 462,227 - 462,227 (21,735) 440,492 440,492

Page 9 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement B Schedule 1 Plant In Service Based on Fiscal Year Ended June 30,2005

Balance Additions Balance Beginning (Retirements) End of Average Description of Year Changes Year B a1 an c e

Intangible Plant: Intangible 5.394.00 5.394.00 5,394.00 Total Intangible Plant 5,394.00 5,394.00 5,394.00

Source of Supply Plant: Land and Land Rights 203,659.00 203,659.00 203,659.00 Structures and Improvements 3,73 9,79 1.OO 3,739,791.00 3,739,791.00 Collecting and Impounding 41,965 .OO 4 1,965 .OO 41,965 .OO Total Source of Supply Plant 3,985,415.00 3,985,415.00 3,985,415.00

Pumping Plant: Land and Land Rights 24,652.00 24,652.00 24,652.00 Structures and Improvements 1,591,872.00 1,591,872.00 1391,872.00 Electric Pumping Equipment 1,125,978.00 1,125,978.00 1,125,978.00 Total Pumping Plant 2,742,502.00 2,742,502.00 2,742,502.00

Water Treatment Plant: Land and Land Rights 92,127.00 92,127.00 92,127.00 Structures and Improvements 3,969,236.00 3,969,236.00 3,969,236.00 Water Treatment Equipment 1.925.825 .OO 1,925,825.00 1,925,825.00 Total Water Treatment Plant 5,987,188.00 5,987,188.00 5,987,188.00

Transmission and Distribution Plant: Land and Land Rights 103,344.00 103,344.00 103,344.00 Structures and Improvements 3 1,660.00 3 1,660.00 31,660.00 Distribution Reservoirs and Standpipes 2,013,624.00 2,013,624.00 2,O 13,624.00 Transmission and Distribution Mains 28,896,630.00 28,896,630.00 28,896,630.00 Services 2,317,165.00 2,3 17,165.00 2,317,165.00 Meters 1,479,342.00 1,479,342.00 1,479,342.00 I Meter Installations 660,993.00 660,993.00 660,993.00 Hydrants 1,541,029.00 1,541,029.00 1,541,029.00 Other Transmission and Distribution Plant 520,000.00 520,000.00 520,000.00 Total Transmission and Distribution Plant 37,563,787.00 37,563,787.00 3 7,563,787.00

General Plant: Land and Land Rights 50,200.00 50,200.00 50,200.00 Structures and Improvements 425,665.00 425,665.00 425,665.00 I Office Furniture and Equipment 193,897.00 193,897.00 193,897.00 Transportation Equipment 550,4 16.00 550,4 16.00 550,416.00 Tools Shop & Garage Equipment 321,06 1.OO 321,061 .OO 32 1,061 .OO Laboratory Equipment 16,587.00 16,587.00 16,587.00 Power Operated Equipment 102,490.00 102,490.00 102,490.00 Communication Equipment 2,485.00 2,485.00 2,485.00 Miscellaneous Equipment 70,032.00 70,032.00 70,032.00 Other Tangible Property 266.00 266.00 266.00 Total General Plant 1,733,099.00 1,733,099.00 1,733,099.00

Total Water Plant In Service 52,017,385.00 52,017,385.00 52,017,385.00

Page 10 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement B Schedule 10 Contributions In Aid of Construction Based on Fiscal Year Ended June 30,2005

Balance Additions Balance Beginning (Retirements) End of Average Description of Year Changes Year Balance

Contributed Capital 35,515,985 (3,810,059) 31,705,926 33,610,956 Less: Amortized Contributions Net Contributed Capital 35,515,985 (3,810,059) 3 1,705,926 33,610,956

Page 11 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement C Detail of Debt Based on Fiscal Year Ended June 30,2005

Outstanding Date of Per Balance Interest Interest for Debt Issue Maturity Sheet Rate Year Principal Total

Per Books: 1996B (Cow Creek) 2029 1,482,025 3.00% 45,239 41,359 86,598 1997A (Whitman Creek) 2037 891,965 3.00% 27,060 16,000 43,060 1997B (Harts Creek) 2037 932,894 2.00% 18,919 20,844 39,763 1998A (Elk CreekNemer) 2038 706,930 1.00% 7,182 17,995 25,177 1999A (Mill Creek) 2039 4,785,568 0.00% 90,536 90,536 1999C (Crawley Creek) 2039 2,887,510 0.00% 66,840 66,840 1999D (Enaloc) 2019 28 6,4 5 6 5.80% 16,959 11,812 28,771 2001A (Mill Creek) 2039 3,765,183 5.80% 219,347 33,322 252,669 2001B (Mill Creek) 204 1 2,513,958 0.00% 69,352 69,352 2002A (Garrett Fork) 2041 1,305,268 4.75% 58,878 16,720 75,598 2002B (Atenville) 204 1 950,194 0.00% 28,387 28,387 2003A Refunding 2009 1,471,898 4.00% 68,643 404,212 472,855 2003B (HuffCreek) 2043 3,539,618 0.00% 2005A (Rocky/Caney Branch) 2044 455,498 0.00% Office Facility Note 201 1 216,000 0.00% 32,400 32,400 26,190,965 462,227 849,779 1,312,006

Going Level: 1996B (Cow Creek) 2029 1,482,025 3.00% 43,984 42,614 86,598 1997A (Whitman Creek) 2037 891,965 3.00% 26,575 16,485 43,060 1997B (Harts Creek) 2037 932,894 2.00% 18,499 21,264 39,763 1998A (Elk CreekNemer) 2038 706,930 1.OO% 7,002 18,176 25,178 1999A (Mill Creek) 2039 4,785,568 0.00% 90,536 90,536 1999C (Crawley Creek) 2039 2,887,510 0.00% 66,840 66,840 1999D (Enaloc) 2019 286,456 5.80% 16,254 12,497 28,751 2001A (Mill Creek) 2039 3,765,183 5.80% 217,358 35,254 252,612 2001B (Mill Creek) 2041 2,5 13,958 0.00% 69,352 69,352 2002A (Garrett Fork) 2041 1,305,268 4.75% 58,878 16,720 75,598 2002B (Atenville) 2041 950,194 0.00% 28,387 28,387 2003A Refunding 2009 1,471,898 4.00% 51,942 420,9 14 472,855 2003B (HaCreek) 2043 3,600,000 0.00% 94,118 94,118 2005A (Rocky/Caney Branch) 2044 923,245 0.00% 24,137 24,137 Office Facility Note 2011 216,000 0.00% 32,400 32,400 26,719,094 440,492 989,693 1,430,185 ~

Page 12 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement D Sheet 1 Customer Bill Analysis-Per Books Based on Fiscal Year Ended June 30,2005

Number 16.93 First Next Next Over Calculated Billed Blocking of Bills M Gallons Minimum Bill 58000 240000 300000 Resale Revenue Revenue 0-2000 18,068 21,385.6 $ 305,891 2000-60000 47,747 242,945.5 95,494.0 147,45 1.5 60001-300000 162 16,925.2 324.0 9,396.0 7,205.2 OVER 300000 25 15,713.5 50.0 1,450.0 6,000.0 8,213.5 Resale 8 4.366.8 -0.0 -0.0 -0.0 -0.0 4,366.8 66,016 301,336.6 95,868.0 158,297.5 13,205.2 8,213.5 4,366.8

Per Book Rates 8.47 8.11 5.983.131.50 Per Book Revenues 305,891 812,002 1,283,793 78,967 25,708 6,550 2,512,911 Percentage of Total for Class 12.17% 32.31% 51.09% 3.14% 1.02% 0.26% 100.00% Annualization Factor 1SO Per Books Annualized Revenue 3,769,367 3,785,357 Correction Factor 1.004242

Page 13 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement D Sheet 2 Customer Bill Analysis-Going Level Based on Fiscal Year Ended June 30,2005

Number 16.93 First Next Next Over Calculated Billed Blocking of Bills M Gallons Minimum Bill 2ooo 58000 240000 300000 Resale Revenue Revenue 0-2000 18,068 21,385.6 $ 305,891 2000-60000 49,563 249,909.2 99,126.0 150,783.2 6000 1-300000 162 16,925.2 324.0 9,396.0 7,205.2 OVER 300000 25 15,713.5 50.0 1,450.0 6,000.0 8,213.5 Resale -8 4.366.8 -0.0 -0.0 -0.0 0.0 4.366.8 67,826 308,300.3 99,500.0 161,629.2 13,205.2 8,213.5 4,366.8

Going Level Rates 8.47 -8.11 5.983.131.50 Going Level Revenues 305,891 842,765 1,3 10,813 78,967 25,708 6,550 2,570,695 Percentage of Total for Class 11.90% 32.78% 50.99% 3.07% 1.00% 0.25% 100.00% Annualization Factor 1.50 Going Level Annualized Revenue 3,856,042 3,872,399 Correction Factor 1.004242

Page 14 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement D Sheet 3 Holden Water Company Customers Customer Bill Analysis-Per Book Based on Calendar Year Ended December 31,2005

Number 15.16 First Next Over Calculated Billed Billed Blocking of Bills M Gallons Minimm Bill 2ooo Next6000 10000 Revenue Revenue Revenue 0-2000 2,728 3,240.0 $ 41,356 2000-4000 2,943 10,280.0 5,886.0 4,394.0 4000-10000 2,304 14,245.0 4,608.0 4,608.0 5,029.0

OVER 10000 _.230 5.454.0 460.0 460.0 1.380.0 3,154.0 8,205 33,219.0 10,954.0 9,462.0 6,409.0 3,154.0

Per Book Rates 7.58 5.99 4.894.25 Per Book Revenues 41,356 83,031 56,677 31,340 13,405 225,810 223,080 Percentage of Total for Class 18.31% 36.77% 25.10% 13.88% 5.94% 100.00% Correction Factor 0.98791

Number 16.93 First Next Next Over Calculated Billed Blocking ofBills M Gallons MinimumBill 2ooo 58000 240000 300000 Resale Revenue Revenue 0-2000 2,728 3,240.0 $ 46,185 2000-60000 5,468 28,662.0 10,936.0 17,726.0 6000 1-300000 9 1,317.0 18.0 522.0 777.0 OVER 300000 0 0.0 0.0 0.0 0.0 0.0 Resale -0 -0.0 -0.0 -0.0 -0.0 -0.0 -0.0 8,205 33,219.0 10,954.0 18,248.0 777.0 0.0 0.0

Per Book Rates 8.47 -8.11 5.98-3.13 1.50 Per Book Revenues 46,185 92,780 147,991 4,646 - - 291,603 288,078 Percentage of total for class 15.84% 31.82% 50.75% 1.59% 0.00% 0.00% 100.00% Correction Factor 0.98791

Page 15 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement D Sheet 4 Customer Bill Analysis-Pro Forma Based on Fiscal Year Ended June 30,2005

Number 16.93 First Next Next Over Calculated Billed Blocking of Bills M Gallons Minimum Bill 2ooo 58000 240000 ----300000 Resale Revenue Revenue 0-2000 18,068 21,385.6 $ 305,891 2000-60000 49,563 249,909.2 99,126.0 150,783.2 60001-300000 162 16,925.2 324.0 9,396.0 7,205.2 OVER 300000 25 15,713.5 50.0 1,450.0 6,000.0 8,213.5 Resale -8 4.366.8 -0.0 -0.0 -0.0 -0.0 4,366.8 67,826 308,300.3 99,500.0 161,629.2 13,205.2 8,213.5 4,366.8

Pro Forma Level Rates -8.47 -8.11 5.98 -3.13 1.50 Pro Forma Revenues 305,891 842,765 ,3 10,s 13 78,967 25,708 6,550 2,570,695 Percentage of Total for CIass 11.90% 32.78% 50.99% 3.07% 1.00% 0.25% 100.00% Annualization Factor 1.so Pro Forma Annualized Revenue 3,856,042 3,872,399 Correction Factor 1.004242

Number 16.93 First Next Over Calculated Billed Blocking of Bills M Gallons Minimum Bill Surcharge -2000 Next 58000 ---240000 300000 Resale Revenue Revenue 0-2000 2,728 3,240.0 $ 46,185 $ 10,050 2000-60000 5,468 28,662.0 10,936.0 17,726.0 6000 1-300000 9 1,317.0 18.0 522.0 777.0 OVER 300000 0 0.0 0.0 0.0 0.0 0.0 Resale -0 -0.0 -0.0 -0.0 -0.0 -0.0 -0.0 8,205 33,219.0 10,954.0 18,248.0 777.0 0.0 0.0

Pro Forma Rates -8.47 -8.1 1 -5.98 3.13 -1.so Pro Forma Revenues 46,185 10,050 92,780 147,991 4,646 - 301,653 298,006 Percentage of Total for Class 15.31% 30.76% 49.06% 1.54% 0.00% 0.00% 96.67% Correction Factor 0.98791

Total Pro Forma Revenue 4,170,405

Page 16 LOGAN COUNTY PUBLIC SERVICE DISTRICT-WATER CURRENT TARIFF

WATER SCHEDULE 1

APPLICABILITY Water rates applicable in all areas served by Logan County Public Service District.

AVAILABILITY Available for residential, commercial, governmental, industrial and resale service.

RATES First 2,000 gallons used per month $8.47 per 1,000 gallons Next 58,000 gallons used per month $8.1 1 per 1,000 gallons Next 240,000 gallons used per month $5.98 per 1,000 gallons All Over 300,000 gallons used per month $3.13 per 1,000 gallons

MINIMUM CHARGE

UN-METERED RATE

I $37.19 per month In the event the water supply (residential) is unmetered or other wise unmeasurable I by the District, the unmetered rate shall be charged. (Based on 4,500 gallons used per month)

DELAYED PAYMENT PENALTY The above rates are net. On all current usage billings not paid in full within twenty (20) days of the billing date, ten percent (1 0%) will be added to the net amount shown. This delayed payment penalty is not interest and is only to be collected only once for each bill where it is appropriate.

17 LOGAN COUNTY PUBLIC SERVICE DISTRICT-WATER CURRENT TARIFF

WATER SCHEDULE 1 (Continued)

TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant.

A tap fee of $100.00 will be charged to customers applying for service before construction is completed adjacent to the customer’s premises in connection with a certificate proceeding before the Commission. This pre-construction tap fee will be invalid after the completion of construction adjacent to the applicant’s premises that is associated with a certificate proceeding.

A tap fee of $250.00 will be charged to customers applying for service outside of a certificate proceeding before the Commission for each new tap to the system.

RECONNECTION SERVICE CHARGE $20.00 There shall be a reconnection charge paid prior to restoration of water service which had been previously discontinued for any reason.

RETURNED CHECK CHARGE $15.00 If a check received is returned by the bank for any reason, the bank’s charge to the Logan County PSD shall be the District’s charge to customer for such a bad check, but such charge to the customer shall not exceed $15 .OO.

LEAK ADJUSTMENT $0.97 per 1,000 gallons. Rate per 1,000 gallons of water is to be used when a bill reflects unusual water consumption which can be attributed to eligible leakage on customer’s side of the meter. This rate shall be applied to all such unusual consumption above the customer’s historical average usage.

APPLICABILITY Applicable in Holden and Camps Nos. 5,6,7,8 and 21 of the Island Creek Coal Company, Logan county.

AVAILABILITY Available for general domestic, commercial and industrial service.

RATES First 2,000 gallons used per month $7.58 per 1,000 gallons Next 2,000 gallons used per month $5.99 per 1,000 gallons Next 6,000 gallons used per month $4.89 per 1,000 gallons All Over 10,000 gallons used per month $4.25 per 1,000 gallons

MINIMUM CHARGE

5/83 inch meter $ 15.16 per month 3/4 inch meter $ 22.75 per month 1 inchmeter $ 37.90 per month 1- 1/2 inch meter $ 75.80 per month 2 inch meter $ 131.30 per month

PRIVATE FIRE PROTECTION Island Creek Coal Company $ 235.00 per month

DELAYED PAYMENT PENALTY i The above tariff is net. On all current usage billings not paid within twenty (20) days, ten percent (10%) will be added to the current amount unpaid. This delayed payment penalty is not interest and is to be collected only once for each bill where it is appropriate.

19 LOGAN COUNTY PUBLIC SERVICE DISTRICT-WATER PROPOSED TARIFF

WATER SCHEDULE 1

APPLICABILITY Water rates applicable in all areas served by Logan County Public Service District.

AVAILABILITY Available for residential, commercial, governmental, industrial and resale service.

MINIMUM CHARGE

UN-METERED RATE $37.19 per month In the event the water supply (residential) is unmetered or other wise unmeasurable by the District, the unmetered rate shall be charged. (Based on 4,500 gallons used per month)

DELAYED PAYMENT PENALTY The above rates are net. On all current usage billings not paid in full within twenty (20) days of the billing date, ten percent (10%) will be added to the net amount shown. This delayed payment penalty is not interest and is only to be collected only once for each bill where it is appropriate.

20 LOGAN COUNTY PUBLIC SERVICE DISTRICT-WATER PROPOSED TARIFF

WATER SCHEDULE 1 (Continued)

I TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant.

A tap fee of $250.00 will be charged to customers applying for service outside of a certificate proceeding before the Commission for each new tap to the system.

(C) SURCHARGE $1.25 per bill per month for a period not to exceed 20 years from the effective date of this tariff will be charged to customers of the Holden water system to repay debt incurred for design of a major replacement project of the system.

RECONNECTION SERVICE CHARGE $20.00 There shall be a reconnection charge paid prior to restoration of water service which had been previously discontinued for any reason.

RETURNED CHECK CHARGE $15.00 I If a check received is returned by the bank for any reason, the bank‘s charge to the Logan County PSD shall be the District’s charge to customer for such a bad check, but such charge to the customer shall not exceed $15.00.

WATER SCHEDULE 2

APPLICABILITY Water rates applicable in all areas served by Logan County Public Service District.

PER ANNUM

2 Inch service line with hydrants, sprinklers, and/or connections $ 60.79 3 Inch service line with hydrants, sprinklers, and/or connections $ 137.41 4 Inch service line with hydrants, sprinklers, and/or connections $ 240.69 6 Inch service line with hydrants, sprinklers, and/or connections $ 609.89 8 Inch service line with hydrants, sprinklers, and/or connections $ 1,000.13 10 Inch service line with hydrants, sprinklers, and/or connections $ 1,773.98 12 Inch service line with hydrants, sprinklers, and/or connections $2,706.32

22 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement G Sheet 1 Detail of Adjustments Based on Fiscal Year Ended June 30,2005

Adjustment Increase Number Going Level Adjustments (Decrease)

Water Sales 87,042 To adjust to reflect going level net increase in residential and commercial water revenues due to additional customer sign-ups on Huff Creek and Caney Branch and the sale of the Sharples Water System. Calculations: $ 3.872.398 Going Level 317851356 Per Books Adjusted $ 87,042

Forfeited Discounts To adjust to reflect going level increase in penalties as a function of increased water revenue. Calculations: $ 99,545 Going Level 2,238 97,307 Per Books Adjusted $ 2,238

(3) Fuel or Power Purchased for Pumping 1,920 To adjust to reflect the reduction in power cost due to the shut down of the Sharples Water Treatment Plant. I Calculations: $ 204,684 Going Level 202,764 Per Books Adjusted $ 1,920

(4) Interest on Long Term Debt (21,735) To adjust interest on long term debt per Schedule C. Calculations: $ 462,227 Going Level 440,492 Per Books Adjusted I $ 21,735

Pro Forma Adjustments I

(5) Water Sales 298,006 To adjust to reflect proforma increase in residential and commercial revenues that the Holden Water Company Acquisition will generate at the proposed rates. Calculations: $ 4,170,404 Pro Forma 3,872,398 Going Level $ 298,006

Forfeited Discounts I To adjust to reflect Pro Forma increase in penalties as a function of incresed water revenue. Calculations: $ 107,205 ProForma 7,660 99,545 Going Level $ 7,660

Page 23 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement G Sheet 2 Detail of Adjustments Based on Fiscal Year Ended June 30,2005

Adjustment Increase Number Pro Forma Adjustments (Decrease)

(7) Fuel or Power Purchased for Pumping 18,890 To adjust to reflect the pro forma increase in power cost based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 223,574 ProForma 204,684 Going Level $ 18,890

Chemicals To adjust to reflect the pro forma increase in chemical cost based on engineering estimates 7,000 for the proposed Holden Water Company Acquisition. Calculations: $ 90,338 ProForma 83,338 Going Level $ 7,000

I (9) Treatment Operation Labor and Expenses 36,450 To adjust to reflect the pro forma increase in treatment labor based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 201,316 ProForma 164,866 Going Level $ 36,450

Storage Facilities Expenses 540 To adjust to reflect the pro forma increase in storage tank electricity based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 9,3 12 Pro Forma 8,772 Going Level $ 540

Maintenance of Transmission and Distibution Mains 74,880 To adjust to reflect the pro forma increase in distribution system labor based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 166,507 ProForma 91,627 Going Level $ 74,880

Maintenance of Misc. Plant 36,000 To adjust to reflect the pro forma increase in distribution system materials and supplies based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 192,559 ProForma 156,559 Going Level $ 36,000

Page 24 Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement G Sheet 3 Detail of Adjustments Based on Fiscal Year Ended June 30,2005

Adjustment Increase Number Pro Forma Adjustments (Decrease)

Customer AccountslSupervision 18,720 To adjust to reflect the pro forma increase in office labor cost based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 107,070 ProForma 881350 Going Level $ 18,720

Customer Records and Collection Expenses 7,640 To adjust to reflect the pro forma increase in billing materials and postage based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 69,138 ProForma 61,498 Going Level $ 7,640

Office Supplies and Other Expenses 470 To adjust to reflect the pro forma increase in office materials based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 60,444 ProForma 59,974 ,Going Level $ 470

Outside Services Employed 150 To adjust to reflect the pro forma increase in memberships and dues based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 33,330 ProForma 33,180 Going Level $ 150

Employee Pensions and Benefits 60,354 To adjust to reflect the pro forma increase in employee benefits based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 540,841 ProForma 480,487 Going Level $ 60,354

Regulatory Commission Expenses 1,050 To adjust to reflect the pro forma increase in regulatory commission expenses based on engineering estimates for the proposed Holden Water Company Acquisition. Calculations: $ 14,366 ProForma 13,316 Going Level $ 1,050

Page 25 I Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit I Statement G Sheet 4 Detail of Adjustments I Based on Fiscal Year Ended June 30,2005 I I i j Adjustment Increase Number Pro Forma Adjustments (Decrease) i I Misc. General Expenses 7,910 To adjust to reflect the pro forma increase in transportation expenses and misc. dues based on engineering estimates or the proposed Holden Water Company Acquisition. 1 Calculations: j $ 94,405 ProForma i 86,495 Going Level $ 7,910 i FICA 9,949 To adjust to reflect the pro forma increase payroll taxes based on engineering estimates for the proposed Holden Water Company Acquisition. j Calculations: 1 $ 78,180 ProForma I 68,231 Going Level $ 9,949 I 1

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Page 26 I I I Logan County Public Service District-Water Division Holden Water Company Acquisition Rule 42 Exhibit Statement H Cash Flow Analysis Based on Fiscal Year Ended June 30,2005

Per Books Description Per Books Adjusted Going Level Pro Forma

Available Cash Operating Revenues 3,999,062 3,999,062 4,088,342 4,394.009 Total Available Cash 3,999,062 3,999,062 4,088,342 4,394,009

Cash Requirements Operation amd Maintenance Expenses 2,348,119 2,348,119 2,352,03 1 2,622,085 Taxes Other Than Income Taxes 68,23 1 68,23 1 68,23 1 78,180 Total Cash Requirements 2,4 16,350 2,4 16,350 2,420,262 2,700,265

Cash Available for Debt Service (A) 1,582,712 1,582,7 12 1,668,080 1,693,744

Debt Service Requirements Interest Expense 462,227 462,227 440,492 440,492 Long Term Debt Principal 849,779 849,779 989,693 989,693 Proposed Design Loan Debt Service - 10,000 ~ Sub-Total (B) 1,312,006 1,3 12,006 1,430,185 1,440,185 Debt Service Reserve Funding 102,120 102,120 113,946 1 13,946 Depreciation Reserve Requirements 99,977 99,977 102,209 109,850 Other Interest 1,22 1 1,22 1 Total Debt Service 1315,324 1,5 15,324 1,646,339 1,663,982

Surplus (Deficit) 67.38867.388 21-741. 29.762 Debt Service Coverage A/B 120.63% 120.63% 116.63% 117.61%

Page 27 PRELIMINARY PROJECT REPORT FOR THE PROPOSED

HOLDEN WATER SYSTEM ACQUISITION PROJECT

MAY, 2006

Prepared By: Rick Roberts, P.E., Managing Engineer Logan County Public Service District P.O. Box 506 Logan, West Virginia 25601 Phone: (304)946-2641 Fax: (304)946-2645 E-mail: [email protected] TABLE OF CONTENTS

Introduction...... 1 History/Existing.. Conditions...... 1 1

Project Summary ...... 15

Material/Construction Cost Estimate ...... 16

Project Cost Estimate ...... 17

Projected O&M Expense ...... 18

Estimated Revenues ...... 23 Summary/Conclusions ...... 24

APPENDICES

A. Logan County PSD Creation Order B. Maps C. Holden Water System Information D. Environmental Letters E. Existing Tariffs F. Proposed Tariff G. Project Schedule

I INTRODUCTION

Logan County Public Service District was created in 1975 to provide water and wastewater service to the majority of the rural areas of Logan County (see Creation Order in Appendix A). In 1979, the District’s boundaries were reduced slightly when the communities of Clothier and Mufflin were officially removed to be included within the boundaries of the Boone County Public Service District (formerly known as the Spruce Fork Public Service District).

By Order dated May 5, 1994, the Logan County Commission expanded the District’s boundaries to include the Huff Creek area of Wyoming County. This expansion was approved by the Public Service Commission of West Virginia by Final Order dated October 18, 1994 (PSC Case No. 94-0403-PWD-PC).

By Order dated November 7,1994, the Logan County Commission expanded the District’s boundaries to include the Harts Creek area of Lincoln County. This expansion was approved by the Public Service Commission of West Virginia by Final Order dated May 3, 1995 (PSC Case No. 94-1065-PWD-PC).

By Order dated October 6, 1997, the Logan County Commission expanded the District’s boundaries to include the Verner and Spice Creek areas of Mingo County. This expansion was approved by the Public Service Commission of West Virginia by Final Order dated April 2, 1998 (PSC Case No. 97-1370-PWD-PC).

The Logan County Public Service District boundaries currently include all of Logan County except: the municipalities of Logan, Chapmanville and Man; the Buffalo Creek Public Service District; and the Clothier and Mufflin areas which, as stated earlier, are in the Boone County Public Service District. Also included are the Huff Creek area of Wyoming County, the Harts Creek area of Lincoln County, and the Verner and Spice Creek areas of Mingo County. . Since its creation in 1975, the District has worked diligently to provide public water and wastewater service to the unserved or under served areas within its boundaries. To date the District has enjoyed some success; however, several areas are still in need of safe, reliable drinking water and wastewater service.

The District currently owns and operates nine (9) separate water systems that provide service to approximately 8,610 customers. The District also owns and operates one (1) wastewater system serving approximately 1,100 customers. The District operates, through an agreement with the Eastern Wyoming Public Service District, four (4) water systems in the Mullens area of Wyoming County which serve approximately 1,036 customers. It also operates, as receiver, four (4) water systems in Wyoming County serving approximately 260 customers. The following is a brief description of each of these water systems:

1 NORTHERN REGIONAL WATER SYSTEM- The Northern Regional Water System is named for the District’s new 2,800 gallons per minute (upgradable to 5,600 gallons per minute) Northern Regional Water Treatment Plant which began operations in late 2002. The service area includes all areas formerly included in the District’s Big Creek, Trace Fork, Island Creek and Justice/Phico Water Systems. The original Island Creek and Justice/Phico Water Systems were purchased from the former J. C. Evans Utilities in 1992. The remaining systems were originally built and/or extended through the construction of fifteen (1 5) major projects from 1979 to the present. The distribution system consists of twelve (12) water storage tanks, nine (9) conventional booster stations, four (4) booster stations with bladder tanks and distribution lines. The system currently provides service to approximately 5,120 customers in the Town of Mitchell Heights and the unincorporated areas of Monitor, Wilkinson, Monaville, Switzer, Sarah Ann, Cow Creek, Whitman Creek, Bradshaw Hollow, Pine Creek, Trace Fork, Banco, Big Creek, North Fork, Kitchen, Stone Branch, Limestone Branch, Daisy, Toney, Green Shoals Branch, Ferrellsburg, Harts, Sawmill Road, Justice Addition, Henlawson, Upper Crooked Creek, Pecks Mill, Phico, Godby Heights, Godby Branch, Pigeon Roost, Mill Creek, Hewett Creek, Barker Fork, Gore Fork, Hainer Branch, Rocklick Branch, Garrett Fork, Atenville, Big Harts Creek, Little Harts Creek and Sand Creek.

GREENVILLE WATER SYSTEM- The original Greenville Water System was constructed in 1985 with major extensions in 1987, 1989, 1990,1994 and 1999. The system consists of a 700 gallons per minute treatment plant, six storage tanks, two booster stations and distribution lines. The system currently serves approximately 1,690 customers in the communities of Greenville, Landville, Bruno, Christian, Huff Junction, Green Valley, Mallory, Davin, Mineral City, Claypool, Combs Addition, Gillman Bottom, Cooks Addition, Taplin, Earling, Elk Creek, Verner, Spice Creek, Huff Creek, Campus, Cyclone and Lacoma.

SHARPLES WATER SYSTEM - The Sharples Water System, constructed in 1985, consists of a 100 gallons per minute treatment plant, one storage tank and distribution lines. The system currently serves approximately 70 customers in the communities of Sharples, Monclo, Sodom and Dobra.

RUM CREEK WATER SYSTEM - The original Rum Creek Water System was constructed in 1984 with major extensions in 1990, 1992 and 1994. It consists of two booster stations, two storage tanks and distribution lines. Water for the system is purchased from the Logan Water Board. Approximately 335 customers are currently served by the system in the communities of Rum Junction, Lyburn, Dehue, Neibert, Madison Creek, Rita, Orville and Yolyn.

MUD FORK WATER SYSTEM - The Mud Fork Water System, constructed in 1984, consists of distribution lines only. Water for the system is purchased from the Logan Water Board. Approximately 140 customers in the community of Upper Mud Fork are currently served by the system.

UWOLLXN WATER PROIE~PREUIIIHARYPRDlEClREPORTlFRM ME 2 STOLLINGS WATER SYSTEM - The Stollings Water System was purchased in 1992 from the former J.C. Evans Utilities. A major extension and upgrade project was completed in 1996. The system consists of two conventional booster stations, one booster station with bladder tanks, two storage tanks and distribution lines. Water for the system is purchased from the Logan Water Board. Approximately 695 customers are currently served by the system in the communities of Stollings, McConnell, Melville, Sunbeam, Fort Branch, Red Campbell, Wanda, Ethel, Freeze Fork and the Logan County Airport.

SUNSET COURT WATER SYSTEM - The Sunset Court Water System was purchased from the former J.C. Evans Utilities in 1992. It consists of two booster stations with bladder tanks and distribution lines. Water for the system is purchased from the Chapmanville Water and Sewer Board. The system currently serves approximately 155 customers in the communities of Airport Road, Sunset Court, Conley Branch and Hidden Valley.

RIDGEVIEW ESTATES WATER SYSTEM - The Ridgeview Estates Water System was acquired in 1998 from the Ridgeview Estates Association. It consists of one booster station, one storage tank and distribution system. Water for the system is purchased from the Chapmanville Water and Sewer Board. The system currently serves approximately 25 customers in the Ridgeview Estates Subdivision.

CRAWLEY CREEK WATER SYSTEM - The Crawley Creek Water System was constructed in 2000 and consists of two storage tanks, one booster station and distribution lines. Water for this system is purchased from the Chapmanville Water and Sewer Board. Approximately 380 customers in the communities of Crawley Creek, Canoe Branch, Striker Fork, Brushy Fork, Tims Fork, Three Forks of Crawley, and the Chief Logan State Part Conference Center are served by the system.

EASTERN WYOMING PSD WATER SYSTEM - Logan County Public Service District entered into an agreement on August 30,2001 to provide operation, maintenance and management services for systems owned by Eastern Wyoming Public Service District. These services currently apply to the following eight (8) systems:

1) Mullens Water System - The system currently provides water service to approximately 536 customers within the City of Mullens. The original system was constructed in the 1940's and consists of a 200 gallons per minute water treatment plant, one 150,000 gallons water storage tank, one booster station and approximately 32,170 feet of 8-inch and smaller diameter water mains.

2) Nuriva Water System - The system currently serves approximately 300 customers in the community of Nuriva, which abuts the City of Mullens to the north. The original system was constructed in the 1940's and consists of a 90 gallons per minute water treatment plant, one 100,000 gallons storage tank, approximately 2 1,400 feet of 8-inch and smaller diameter water mains.

3 Itmann Water System - The system currently serves approximately 145 customers in the community of Itmann, which is located approximately one mile west of the City of Mullens along West Virginia Route 10. The original Itmann system was constructed in the 1940’s and consists of a 90 gallons per minute water treatment plant, one 150,000 gallons storage tank and approximately 1 1,500 feet of 6-inch and smaller diameter water mains.

Wyco Water System - The system currently serves approximately 46 unmetered customers in the community of Wyco. The Wyco Water System was constructed in 1980 and consists of a 50 gallons per minute booster station with chlorination facilities, two 20,000 gallons water storage tanks and approximately 9,000 feet of 4-inch and smaller diameter water mains.

Corinne Water Works - The system consists of a 75 gallons per minute water treatment system and approximately 22,000 feet of 4-inch and smaller diameter water main. Approximately 109 unmetered customers in the communities of Corinne and Blackeagle are served by the system.

Welton Water Company - This system consists of a 50 gallons per minute water treatment system, one storage tank and approximately 8,500 feet of 4-inch and smaller diameter water main. The system serves approximately 80 unmetered customers in the communities of Allen Junction and Beechwood.

Buckeye Waterworks (Iroquois) - The system consists of a 20 gallons per minute water treatment system, one storage tank and approximately 3,500 feet of 2-inch and smaller diameter main. It serves approximately 6 customers in the community of Iroquois.

Buckeye Waterworks (Stephenson) - This system consists of a 50 gallons per minute water treatment facility, one water storage tank and approximately 7,000 feet of 4-inch and smaller diameter main. Approximately 5 1 customers in the community of Stephenson are served by the system.

In addition to the nine (9) water systems owned and operated by Logan County PSD, seven (7) other entities own and operate water systems in Logan County (See Table 1 as follows).

4 TABLE 1 LOGAN COUNTY WATER UTILITIES

Utility Name Customers Served Logan County PSD 8,610 Buffalo Creek PSD 1,130 Boone County PSD 60 City of Logan 2,300 Town of Chapmanville 965 Town of Man 445 West Logan Water Company 450 Holden Water Company 680 Total 14,640

The District takes great pride in the quality of its operations. It has established programs to monitor such critical, but often overlooked, aspects of its operations such as water accountability, meter testing, inventory control, vehicle 0 & M expense, etc. To extend the life of its systems and improve reliability the District has developed and implemented an aggressive preventive maintenance program. The meter testing and vehicle 0 & M expense programs are computerized and the water accountability and preventive maintenance programs are on schedule to be computerized in the near future. The District has computerized its payroll, billing system and other financial records. The computer system is networked and sized to handle projected growth for many years. Hand held meter readers are used to reduce manpower requirements and improve accuracy. Meters are being converted to “touch read” as funds allow to krther improve accuracy and efficiency. Approximately 6,000 of the District’s meters have been converted to date. The District has, for the previous several years, been making decisions based upon its twenty-year plan in order to prepare for expansion into additional areas.

The District Board has a combined total of over 60 years of service and is comprised of highly motivated business oriented individuals. The District employs a Licensed, Professional Civil Engineer as its Manager. The Assistant Manager is a Certified Public Accountant. It’s Staff of 33 includes two Class 111, three Class 11, and four Class I Water System operators; two Class I1 Wastewater System operators and has over 400 years of combined water and wastewater system related experience.

District personnel are experienced in the planning and implementation of extensions to its systems. Since its creation in 1975, the District has completed twenty-eight (28) major water J projects (See Table 2 as follows). Applications for funding were prepared by District personnel and the majority of the administration was done by District personnel. On several projects District personnel provided technical services including preliminary design, design review, shop drawing review, construction inspection, coordination and closeout, etc. Essentially all of these projects were completed on time and within or below budget.

I 5 TABLE 2 MAJOR PROJECTS COMPLETED Year Customers Proiect Completed Project Cost Served Big Creek 1979 $800,000.00 210 Rum Junction 1984 380,000.00 80 Mud Fork 1984 620,000.00 125 Greenville 1985 1,250,000.00 80 Sharples 1985 760,000.00 125 Landville/Christian 1987 820,000.00 23 0 Huff JunctiordGreen Valley 1989 440,000.00 120 Mallory/Davin 1991 980,000.00 270 Neibert Taplin 1992 2,400,000.00 280 Mineral City/Cooks Addition 1994 1,230,000.00 390 Crooked Creek 1994 890,000.00 70 Rum Creek 1994 1,120,000.00 110 Godby Branch 1995 760,000.00 90 Cow Creek 1996 5,500,000.00 300 Dingess Run 1996 1,400,000.00 270 Trace Fork 1996 1,100,000.00 140 Whitman Creek 1997 2,000,000.00 50 Regional Jail 1997 2,000,000.00 5 Harts Creek 1997 2,300,000.00 360 Elk CreekNerner 1998 1,550,000.00 200 Mill Creek Phase I 2000 8,600,000.00 870 Crawley Creek 2000 4,840,000.00 540 Pine Creek 2000 2,400,000.00 25 Mill Creek Phase I1 & I11 2002 7,500,000.00 N/A Garrett Fork 2002 2,400,000.00 240 Atenville 2004 2,600,000.00 360 Huff Creek 2004 4,140,000.00 440 RockylCaney Branch 2005 2,140,000.00 160 Totals $62,920,000.00 6,140

6 Several other water projects have been identified and are in the development stage (See Table 3 as follows).

TABLE 3 FUTURE DISTRICT WATER PROJECTS Estimated Potential Proiect Name Countv(ies) Proiect Cost Customers Big Harts/Shively Logan & Lincoln 4,500,000 350 Marsh Fork Logan 2,000,000 140 North Fork Big Creek Logan 2,700,000 229 Blair Logan 2,000,000 150 Upper Little Harts Creek Lincoln 1,430,000 105 Anchor Road Boone 2,200,000 150 Dollie/Leet Lincoln 3,300,000 -164 Totals $18,130,000 1,288

The District owns a significant amount of construction equipment including: one Caterpillar 307 B Excavator; one Kubota Model KH 170L Excavator with rock hammer; one New Holland 555 E Backhoe; one Case Model 480E Backhoe; two Kubota Model B20 Backhoes; one Kubota B2 1 Backhoe; one Case TL 1000 Hand Trencher; one American Auger H- 12 Boring Machine capable of doing 4,8 and 12-inch bores; one Sullair 130 DPQJD Air Compressor; one Chicago Pneumatic CP 90 Air Compressor with Jackhammer and Road Mole; one 1-Ton Dump Truck; one 2-Ton Dump Truck; four equipment trailers as well as such smaller items as demolition saws, compactors, welders, etc. The District’s service fleet includes sixteen various sized vehicles. Each of these vehicles is fitted with a Motorola Max Trax 100 radio which, when used in conjunction with the base station located at the main office, maintains an excellent line of communication between all employees throughout the District’s service area.

The District maintains a dedicated construction crew, which works hll-time on “in house” projects to upgrade and extend its systems. To date several projects have been completed using this approach (See Table 4 as follows). Each of these “in-house” projects was designed, bid and constructed by District staff with District equipment. This has been a very successfid program, which the District intends to continue. Several additional “in-house” projects are presently in various stages of planning, design and construction.

U MOLDEN WATER PROIECI\PREULIINARYPROJ~RE~RTlFRL1.N 7 TABLE 4 “IN - HOUSE” PROJECTS COMPLETED

PROJECT NAME YEAR COMPLETED PROJECT COST Limestone Branch 1992 $ 40,000.00 Pigeon Roost Phase I 1995 90,000.00 Henlawson - Phase I 1996 70,000.00 Dingess Run - Phase I 1997 20,000.00 Godby Heights Road 1997 30,000.00 Pigeon Roost - Phase 11 1998 70,000.00 Wilkinson Upgrade 1998 14,000.00 Bentley Branch Upgrade 1998 29,000.00 Whitman Creek Upgrade 1999 153,000.00 Atenville Grade School 2000 100,000.00 Bandmill Hollow 2000 80,000.00 Conley Branch 2000 30,000.00 Lower Switzer Upgrade 200 1 80,000.00 Wheatley Branch 200 1 125,000.00 Total $ 93 1,000.00

In 1975, it was estimated that approximately thirty percent of residents of Logan County had access to a safe reliable public water source. At that time, the Logan County Commission identified the need to establish an entity to provide water and wastewater service to the remaining unserved and undeserved areas of the County. Logan County PSD was created to be that entity and was delegated the responsibility of achieving the Commission’s goal of providing safe, reliable water and wastewater service to all residents of Logan County. Since its creation, the District has taken this responsibility very seriously; accordingly, it has adopted the Commission’s goal as its own.

To accomplish its goal, the District has adopted the strategy of identifying as many potential projects as possible, then pursuing funding for all of them at the same time. Projects and potential funding sources are “matched” based upon each project’s perceived qualifiers. For example, when it became apparent that Abandoned Mined Lands (AML) monies could be used to fund water projects, the District identified approximately fourteen (1 4) projects in areas where significant pre-law mining had occurred and submitted AML Applications for each. Similarly, projects serving low to moderate income areas were “matched” to the Small Cities Block Grant (SCBG) program, projects representing an enhanced potential for economic growth were “matched” with the Appalachian Regional Commission (ARC) or Economic Development Administration (EDA) programs, etc. If funding is not forthcoming from the initial source, an alternate source is identified and pursued. This aggressive approach has worked well in Logan County; however, it requires a great deal of hard work and flexibility.

A major obstacle to the achievement of the District’s goal was the existence of numerous privately owned water systems in the county. These systems varied greatly in size and provided marginal to substandard service. To date twenty-eight (28) of these systems have been acquired by the District (See Table 5 as follows). Each of these systems has been either replaced or upgraded.

U WOLDEN WATER PROJECI\PRELlbllNARYPROJE~REWRT1FRL1.W 8 TABLE 5 DISTRICT ACQUIRED WATER SYSTEMS

Year -Name Acquired Status J.C.Evans Utilities, Inc. a) Queen Justice 1992 Partial Upgrade b) Phico/Godby 1992 Partial Upgrade c) Whitman Creek 1992 Partial Upgrade d) Sunset Court 992 Partial Upgrade e) Sto1 lings/McConnel 1 992 Partial Upgrade f) Switzer 992 Partial Upgrade g) Monaville 992 Partial Upgrade ! Dingess - Rum Coal Company a) Dehue 1991 Replaced b) Orville 1994 Replaced c) Yolyn 1994 Replaced d) Dingess Run 1996 Replaced

Appalachian Water & Sewer Development. Assoc. a) Lyburn 1984 Replaced b) Greenville 1985 Replaced c) Sharples 1985 Replaced d) Landville 1987 Replaced e) Bruno 1987 Replaced f) Christian 1987 Replaced g) Mallory 1991 Replaced h)Taplin 1992 Replaced I) Earling 1992 Replaced j) Rita 1992 Replaced k) Neibert 1992 Replaced 1) Gillman Bottom 1994 Replaced m) Mineral City 1994 Replaced

Ridgeview Estates Homeowner Association a) Ridgeview 1998 Minor Upgrade

Enaloc Water Corporation a) Rossmore 1999 Partial Upgrade b) Chauncy 1999 Partial Upgrade c) Stirrat 1999 Partial Upgrade

9 The proposed Holden Water System Acquisition Project will acquire and modi@ a failing privately owned public water system serving approximately 690 customers (1,725 persons) in the Logan County communities of Holden, Whitman Junction, Trace Junction, Beebe, Frogtown, Sycramore, Diamond, Davis, Sulphur Springs and surrounding areas (See Maps in Appendix B).

The project consists of the following three (3) components which will be discussed in greater detail in later sections of this report:

1) Acquisition of the Holden Water Company Assets

2) Construction of an Emergency Upgrade Project

3) Design of a System Replacement Project

10 HISTORYEXISTING CONDITIONS

All residents and businesses within the project area currently obtain their water from the privately owned Holden Water Company. The Holden water system was originally constructed over sixty (60) years ago and is in very poor condition. Problems include low pressure areas due to old partially clogged and undersized mains, red water and inadequate fire protection. To date more than 180 formal complaints related to these system problems have been filed with the Public Service Commission of West Virginia. Various documents related to the poor condition of the Holden Water System are included in Appendix C.

The existing conditions described above clearly indicate that a non-action plan is not a viable alternative. Given that the entire project is served by a public water system, it is presumed that alternatives such as bottled or trucked water, provision of individual home water treatment units and decentralizing the system through drilling of individual wells would not be acceptable to the existing customers. It is also believed that these alternatives would be impractical to utilize and extremely expensive to construct, operate and maintain. Accordingly, these alternatives were I not costed out. I Given the age and poor condition of the existing distribution system, it is believed that any option selected to improve water service in the area will include the complete replacement of the existing distribution system. Given this assumption, the alternatives are reduced to the source of finished water to pump into the system. The following three finished water sources will be evaluated further:

1. Extension of Logan County Public Service District’s Northern Regional Water 1 System.

2. Extension of the City of Logan Water Board Water System.

3. Construction of a new water treatment plant to serve the Holden Project Area.

Alternative No. 1 - Extension of Logan Countv Public Service District System

Logan County Public Service District’s Northern Regional Water System includes a 12- inch main that is located within the project area. This main was constructed in 1997 and was hydraulically sized to permit a 400 gallons per minute draw for future service to the Holden Water System, The District’s Northern Regional Water Treatment Plant was constructed in 2002. This 2,800 gallons per minute facility currently operates approximately 8.5 hours per day and has adequate excess capacity to serve the project area. In summary, Logan County Public Service District can supply 400 gallons per minute of water within the project area without upgrade.

11 Alternative No. 2 - Extension of City of Logan Water Board Svstem

The City of Logan Water Board’s existing water system abuts the project area; however, distribution mains in the area are not sized to adequately serve the project area. The closest large diameter main (1 0-inch) is located in the Mt. Gay area which is approximately 8,200 feet from the project area. The City’s treatment plant reportedly has adequate excess capacity to serve the project area; however, the City has plans to upgrade the plant in the near hture. At a minimum, the City would have to construct approximately 8,200 feet of 10-inch main or larger to serve the project area. At $50 per foot, this would equate to a construction cost of approximately $410,000. Using the multiplier of 1.30, the minimum estimated project cost for Alternative No. 2 would be $533,000.

Alternative No. 3 - Construction of a new water treatment plant

The provision of a new treatment plant to serve the project area would involve identification and testing of a water source, location and acquisition of a site, design and construction of the treatment plant and operation and maintenance. Without detailed preliminary engineering it is difficult to make an accurate estimation of the cost of the project. Conversations with various contractors and engineers indicate that the project cost for a 400 gallons per minute, iron removal treatment plant would be in excess of $2,000,000. Additionally, the current owners of the Holden Water System have no desire to continue operating the system. Neither the District nor the City of Logan would want to build a new plant given the excess capacity of their existing plants.

It is the District’s proposal to acquire and completely replace the existing Holden Water System. Water for the project will be produced by the District’s Northern Regional Water Treatment Plant. This plant was completed in 2002 and includes sedimentation, upflow clarification, filtration and disinfection. Site plans and diagrams are included in Appendix D. The plant has a rated capacity of 2,800 gallons per minute and is easily upgradeable to 5,600 gallons per minute. It is currently operated approximately 8-9 hours per day and is in excellent condition. The source of raw water is the Guyandotte River which has adequate year round flows for the District’s current and future needs.

The District’s existing distribution system includes a 12-inch main which ends within the Holden Water System service area. This main was sized to include a 400 gallons per minute future draw to serve the Holden Water System. The proposed project will connect to this main and extend through the system’s service territory.

12 Logan County Public Service District will own and operate this addition to its system. The District currently employs the following water operators for its Logan County based water operations:

-Name -Class Certificate No. Timmy R. Deskins I11 200600202 1-F Donald R. Morgan I11 2007005487-F Charles R. Roberts, Jr. I1 2007006622-F Jeffrey A. Baldwin I1 2006000360-F Ruth Ann Brown I1 2007000953-F Christopher R. Adkins I 2006000 196-F James C. Baisden I 2006000339 Ralph Adkins I 2007009536 Bob Johnson I 2006003950

Based upon Projections Using State Short and Long Term Migration Averages (Year 2000 average birth and death rates, and the 1995-1990 inmigration and outmigration rates) obtained from the Regional Research Institute, West Virginia University, the population of Logan County is projected to decrease through the year 2025. The following are Short and Long Term Population Projections throughout the year 2025:

-Year Short Term Long Term 1990 43,032 43,032 1995 42,273 42,273 2000 37,710 37,710 2005 36,140 35,090 2010 34,839 32,939 2015 33,646 3 1,088 2020 32,603 29,523 2025 3 1,734 28,2 12

It is important to note that the project is in an area of Logan County that is experiencing population growth due to its close proximity to US 119 (Corridor G). During the period of December 3 1,1994 through December 3 1,2004, the number of customers served by the Holden Water System increased by over four (4) percent, from 662 to 690 customers. Accordingly, it is anticipated that the population within the project area will increase slightly over the next 25 years. It is believed that the availability of an improved potable water supply for the area will result in the construction of new homes and businesses. The project area includes the Whitman Branch Industrial Park which has the potential to create approximately 55 new jobs should water become available. Any additional water demand in the project area will be supplied by the District’s Northern Regional Water Treatment Plant.

13 I I

I 1 The existing Holden Water System is in very poor condition with water accountability being estimated at about fifty (50) percent. The District anticipates that it can improve water I accountability to around seventy (70) percent within the first year of operation. Average potential I water demand for the project area will be around 135,000 gallons per day (690 x 150 gpd/cust. x 1.3). This represents additional operating time of the Northern Regional Water Treatment Plant of around 48 minutes per day. Peak usages, as per the West Virginia Bureau for Public Health, I Public Water System Design Standards, are expected to be approximately 345 gallons per minute;

I however, the duration of these peaks should be short lived and will be offset to a certain extent by I I the storage capacity of the system.

! The following permits must be obtained in conjunction with the construction of this I I project:

I 1) WV Department of Health i 2) WV Public Service Commission 3) WV Department of Highways I 4) WV Division of Environmental Protection I In order to assess the potential environmental impacts of the Holden Water System Acquisition Project, the District has requested comments from the following state and federal i agencies (See Appendix D):

1) WV Division of Culture and History I 2) US Army Corps of Engineers 3) USDA - Natural Resources Section I 4) WV DNR - Wildlife Resources Section 5) US Dept. of the Interior - Fish and Wildlife Service

I I Comments received from these agencies will be incorporated into a Environmental Assessment Report to be provided at a later date. i Negative environmental impacts of the projects will be minimal. Unavoidable adverse impacts such as erosion and sedimentation will be minimized through the use of silt fences, straw I bales, and other available technologies. Disturbed areas will be graded, seeded and mulched as I soon as practical after construction. Dust, mud and other conditions will be minimized by regularly sweeping and damping roadways. Noise pollution will be controlled as much as

I 1 possible through the proper operation and maintenance of equipment and scheduling of work. I The 100 year flood elevation of the small streams within the project area was not readily available. No flood sensitive components such as tanks or booster stations will be located in the i 100 year flood plain. Components such as water lines, fire hydrants and meters which may be located within the flood plain will be of such a design that potential flood damage will be minimal I if not non-existent. I 1

I i 14 PROJECT SUMMARY

The proposed Holden Water System Acquisition Project will acquire and modify a failing privately owned public water system serving approximately 690 customers (1,725 persons) in the Logan County communities of Holden, Whitman Junction, Trace Junction, Beebe, Frogtown, Sycramore, Diamond, Davis, Sulphur Springs and surrounding areas (See Maps in Appendix B).

The project consists of the following three (3) components:

1) Acquisition of the Holden Water System - This component consists of the acquisition of the assets of the Holden Water Company by the District as detailed in an Agreement between the parties dated May 10,2006.

Construction of an Emergency Upgrade Project - This emergency upgrade is anticipated to be designed and constructed using District personnel and equipment. It consists of the construction of approximately 4,200 feet of 12- inch and smaller diameter water main, one pump station and other items to connect the District’s existing water system to the Holden System. This will allow the abandonment of the existing water treatment plant serving Holden. Following completion of the emergency project, water for the system will be provided by the District’s Northern Regional Water Treatment Plant.

3) Design of a System Replacement Project - This component consists of the design of a major water project to replace the remainder of the Holden Water System as detailed in WVIJDC Project No. 2006W-894.

The cost of the project is estimated at $700,000. Funding consists of a state grant of $500,000 and a design loan of $200,000 fiom the WV Infrastructure Fund at zero (0) percent interest for 20 years.

15 HOLDEN WATER SYSTEM ACQUISITION PROJECT MATERlALlCONSTRUCTlON COST ESTIMATE EMERGENCY PROJECT

I Total Estimated MateriallConstructionCost1 $280,000.00 I May, 2006

16 HOLDEN WATER SYSTEM ACQUISITION PROJECT PROJECT COST ESTIMATE

-ITEM AMOUNT Estimated Construction Cost $280,000.00 Engineering-Design $200,000.00 Eng ineering-Construction $0.00 Engineering-Special $0.00 Construction Inspection $0.00 Project Legal Services $2,000.00 PSC Legal Services $5,000.00 Property Acquistion Legal $2,000.00 Administration $2,000.00 Sites & Other Lands $5,000.00 Permits $3,000.00 Bond Counsel Services $0.00 Capitalized Interest $0.00 Accounting Services $0.00 Acquistion Cost $190,000.00 Equipment $0.00 Project Contingency ( 5% ) $1 1.ooo.oo Total Estimated Project Cost $700,000.00

17 PROJECTED O&M EXPENSE

TREATMENT LABOR EXPENSE:

Acquisition of the Holden Water System will require that the District operate the Holden Water Treatment Plant for a currently unknown period of time. This will require that the District hire an experienced, qualified operator to operate the plant and oversee modifications and maintenance. Upon abandonment of the Holden Plant, the operator will be relocated to one of the other existing District treatment plants. It is expected that the rate of pay for this operator will be $14.60 per hour. The employee will be full-time, working 2,080 hours per year with an overtime i factor of 120 percent. The treatment direct labor expense is calculated as follows:

Treatment Direct Labor = 1 x $14.60/hr. x 2,080 x 1.2 = $36,442, Say $36,45O/vear

DISTRIBUTION SYSTEM LABOR EXPENSE:

It is estimated that three (3) additional maintenance persons will be required to upgrade and maintain the system. It is expected that the rate of pay for these individuals will be $10.00 per hour. The employees will be full-time, working 2,080 hours per year with an overtime factor of 120 percent. The distribution system direct labor expense is calculated as follows:

Distribution Direct Labor = 3 x $lO.OO/hr x 2,080 hrs/yr x 1.2 = $74,88O/vear

OFFICE LABOR EXPENSE:

It is estimated that one (1) additional office employee will be required and that the average hourly rate of pay for the employee will be $9.00 per hour. The employee will be full-time, working 2,080 hours per year. It is not anticipated that this employee will be required to work any significant overtime. The office direct labor expense is calculated as follows:

Office Direct Labor: 1 x $9.00/hr. x 2,080 hrs/yr = $l8,720/year

EMPLOYEE PENSIONS/BENEFITSEXPENSE From the previous sections, direct labor gross wages are as follows:

Treatment $ 36,450 Distribution 74,880 Office 18,720 $13 0,05 O/year Pension and benefits include retirement, uniforms and health insurance.

Retirement Benefit is at 10.5 percent of gross wages:

Retirement Benefit = $130,05O/yr. x 0.105 = $13,655/year

Uniforms Benefit expense is $6.70/wk per field employee:

Uniforms Benefit = $6.70/wk x 52 wk/yr. x 4 employees = $1,394/year

The District currently pays 100 percent of each employee’s health insurance premiums. The current premiums are $410 per month for single coverage and $820 per month for family coverage. Of the five new employees, it is estimated that three will require family coverage and two will require single coverage. The increased health insurance costs are estimated as follows:

Family Health Ins. Premiums = 3 x $820/mo. x 12 mo/yr = $29,520 Single Health Ins. Premiums = 2 x $410/mo. x 12 mo/yr = 9.840 $39,3 60/year

Other benefitdexpense:

F.I.C.A. Expense at 7.65 percent of gross wages:

F.I.C.A. = $130,05O/yr x 0.0765 = $ 9,949/year

Workers Compensation at 4.57 percent of gross wages:

Workers Compensation = $130,050 x 0.0457 = $5,943/year

Total Employee PensiodBenefits Expense:

Retirement $ 13,655 Uniforms 1,394 Health Insurance 39,360 F.I.C.A. 9,949 Workers Compensation 5,943 Total $70,301 Say $70,30O/Year

U UIOLUEN WATER PROJECWRELlhlMARYPRO~~EmRTl.~.~ 19 TREATMENT PLANT CHEMICALS:

During the year ended December 3 1, 2005, the Northern Regional Treatment Plant produced approximately 409,594,000 gallons of water. During this same period, $58,130 worth of chemicals were used. This equates to a chemical cost of approximately $0.142 per thousand gallons of water treated.

It is estimated that the District’s Northern Regional Water Treatment Plant will need to produce an additional 135,000 gallons per day (690 customers x 150 gallons per day x 1.30) to meet the demands of this project. This equates to approximately 49,275,000 gallons of water per year. At a cost of $0.142 per thousand gallons, additional chemical costs at the District’s plant will be:

Plant Chemical Cost = $0.142/MGal. x 49,275 MGal. = $6,997.05/year Say, $7,00O/Year

TREATMENT PLANT ELECTRICITY:

During the year ended December 3 1, 2005, the Northern Regional Treatment Plant produced approximately 409,594,000 gallons of water. During the same period, electric bills totaled $88,5 14. This equates to an electrical cost of approximately $0.216 per thousand gallons of water treated. However, the District expects electrical costs to increase by approximately 20 percent next year due to the recent AEP rate increase which will increase treatment plant electrical cost to approximately $0.259 per thousand gallons.

It has been estimated that approximately 49,275,000 additional gallons of water per year will be produced to serve the Holden Water System. At a cost of $0.259 per thousand gallons, the plant electrical cost will be:

Plant Electrical Cost = $0.259/MGal. x 49,275 MGal. = $12,762.22/year say $12,770/vear

BOOSTER STATION ELECTRICITY:

The proposed Holden Booster Station will pump approximately 75 percent of the water used by the Holden Water System. It is estimated that the booster station will pump an average of 3,080,000 gallons of water per month. The proposed booster station will have a rated capacity of 300 gallons per minute and the motors are estimated to be 40 hp. The additional electricity expense for the Holden Booster Station is calculated as follows:

At 300 gpm, the pump will run: 3,080,000 gal./m0./300 gpd60 min./hr.=l71 hr./mo. @ 40 hp, that’s 171 x 40 = 6,840 hp-hours/mo. Converting to kilowatt hours: 6,840 hp-hours/mo. x 0.7457 = 5,100 kwh/mo. @ $0.10 kwh/mo.: 5,100 x 0.10 = $510.00/mo. Or $510.00/mo. x 12 = $6,12O/year

STORAGE TANK ELECTRICITY:

The Holden Water System Acquisition Project will include the operation of three (3) water storage tanks. An electrical service is, or will be provided at each tank location to power the telemetry system (minimal usage). The District currently has several such electrical services at its various tanks, repeaters, etc., and the monthly electricity cost averages approximately $15.00 per month per service. At $15.00 per month per service the annual cost will be:

Storage Tank Electricity Cost = 3 sites x $15.00/mo./site x 12 mo./yr. = $540/year

MAINTENANCE MATERIALS:

This item includes replacement meter boxes and lids, valve box risers, repair clamps, etc. Because this is an old system, it is anticipated that maintenance material expense will be I significant, Maintenance material expense is estimated as follows:

Estimated at $3,OOO/mo. x 12 mo./yr = $36,00O/year i

TRANSPORTATION EXPENSE:

Estimate 20 mile round trip & 15 tripdweek 20 miledtrip x 15 tripdwk. x 52 wks./yr. x $0.50/mile = $7,80O/year

BILLINGMAILING MATERIALS & POSTAGE:

One billing letter will be printed and mailed to each of the 690 initial new customers each month. It is estimated that approximately 170 (25 percent) delinquent notices will be mailed per month. One Consumer Confidence Report will be mailed to each customer per year. It is anticipated that one additional public relations notice will be mass mailed per year. The total billing/mailing materials and postage expense will be as follows:

Billing 690 letterdmo. x $OSO/letter x 12 mo./yr. = $ 4,140.00 Deliq. Notice 170 letterdmo. x $0.70/letter x 12 mo./yr. = 1,428.00 Con. Conf, Report 690 reportdyr. x $2.00/report = 1,380.00 PR Mailing 690 notices/yr. x $1 .OO/notice = 690.00 Total $7,638.00 Say $7,64O/Year MISCELLANEOUS OFFICE MATERIALS:

This item includes mainly consumable items such as pens, pencils, paper, staples, tape and other items used by the office staff to service the additional customer accounts resulting from this project.

Estimated at $470/year

MEMBERSHIPS & DUES:

WVPSC Assessment $0.35/$100 revenues x $300,00O/yr. = $1,050.00/yr.

WV Rural Water Association Dues 690 customers x $0.1 5/customer = $103.50/yr.

MISS UTILITY OF WV Dues $1.25 per call & assume 10 calls per month $1.25/call x 10 calls/mo. x 12 mo./yr. = $150.00/yr.

Total = $1,050.00 + $103.50 + $150.00 = $1,303.50/yr. say $1,3lO/year

O&M EXPENSE SUMMARY:

Treatment Labor $ 36,450.00 Distribution Labor 74,880.00 Office Labor 18,720.00 Employee PensiondBenefits 70,300.00 Treatment Plant Chemicals 7,000.00 Treatment Plant Electricity 12,770.00 Booster Station Electricity 6,120.00 Storage Tank Electricity 540.00 Maintenance Materials 36,000.00 Transportation Expense 7,800.00 BillingMailing Materials & Postage 7,640.00 Miscellaneous Office Materials 470.00 Memberships & Dues 1.3 10.00 Total Estimated O&M Expense $280,000.00

22 i ESTIMATED REVENUES

Revenue projections for the project will be developed in conjunction with the development 1 of the Public Service Commission Rule 42 Exhibit for the project. For the purposes of this report, revenues for the project will be estimated at $290,000 per year.

I Additionally, the District is proposing a surcharge be added to the tariff which will generate approximately $10,000 per year to be used to repay the design loan for the future

I replacement project. This surcharge will be in effect for the term of the loan only.

23 SUMMARY / CONCLUSIONS

Completion of the proposed Project described herein will result in an increase in operation and maintenance expense of approximately $280,000 per year. Debt Service on the design loan is expected to be approximately $10,000 per year. Additional revenues resulting from the system have been estimated at $300,000 per year. This equates to an annual surplus as a result of the Project of approximately $10,000. It is therefore concluded that the Holden Water System Acquisition Project is feasible and self sustaining.

The District’s last general rate increase was in 2003. The Public Service Commission of West Virginia (PSC) approved the rates by Final Order dated June 30,2003 in Case No. 02-1 399- PWD-42T. The effective date of the increase was July 15,2003. The District has since increased rates through Case No. 03-2015-PWD-30B which were PSC approved by Final Order dated December 28,2004. The effective date for the new rates was December 28,2004. Under the I District’s current tariff, the minimum bill is $16.93 per month for 2,000 gallons usage. The average monthly bill for 4,500 gallons usage is $37.22. A copy of the tariff is included in Appendix E.

The Holden Water Company’s rates have been in effect for approximately thirteen (1 3) years. The Company’s Tariff was approved by Final PSC Order dated June 7, 1993 in Case No. 92-1 158-W-PC. Under the Company’s existing rates, the minimum bill is $1 5.16 per month for 2,000 gallons usage. The average monthly bill for 4,500 gallons usage is $29.58. A copy of the tariff is included in Appendix E.

The rates proposed for the customers of the Holden Water System are equal to the District’s existing rates, plus a surcharge to fund the design of the replacement project. This represents a substantial rate increase for the Holden customers. The minimum bill for 2,000 gallons usage under the new tariff will be $16.93 per month plus a surcharge of $1.25 for a total of $18.18 per month. The average monthly bill for 4,500 gallons usage will increase to $37.22 plus the surcharge of $1 -25 for a total of $38.47 per month. These rates represent an increase of approximately 30 percent.

Design of the Emergency Project has been started by District Staff and is approximately fifty (50) percent complete. Procurement of Engineering Services for the future Replacement Project will be done as soon as funding is committed. It is anticipated that the Replacement Project will take approximately 30 months to complete. A Project Schedule detailing the critical project steps is included in Appendix G.

It will be necessary to acquire one (1) parcel of land for the Project for the booster station I site, It will be necessary to obtain a small number of rights-of-way. The number of required rights-of-way will be minimized by locating waterlines on West Virginia Division of Highways right-of-way whenever possible. Acquisition has not begun to date. The District will proceed with acquisitions when the design has progressed to the point that needed acquisitions are identified.

24 The public health benefits to be derived from the project include those associated with improved quality of drinking water and the provision of adequate fire protection. The existing water system is old and in poor condition. Reportedly, several fire hydrants are inoperable and pressures in portions of the system are marginal due to buildup in mains and undersized mains. The water quality is poor with high concentrations of iron and manganese. The construction of the new system will improve system pressure and fire protection capabilities. It will also improve water quality by providing an alternate source of clean, pure water from the District’s existing i Northern Regional Water Treatment Plant.

25 APPENDIX A

LOGAN COUNTY PSD CREATION ORDER m ?Z: mr,IC SF.7ICX DISTRICT

10:53 a.3. o'clock =here vas a public he-ing at Xocm 104, Co- Zo*.-ise, LOG= V:ranic held in accordance with Chzgter I6, Article l3A, Section 2 of the Vest Vi=$nis Code with the propr notices of pablication and all gersons

residing in sz on or har.iEg m.y in5arsst b ar3porty izz szirl propcrnsrl eiz:*c

I ..

to the preservation of public health, comfort and convenience of said area, Therefore, upon pmper motion and second the County Cornissfon of Logan County does hereby ORDER the establishment of and does establish and create a publfc service district under the provisions of Chapter 76, Article 13A, Section 2 of the Nest. Vlrginia Statutory Code to have all of the powers enumerated in said Chapter and Artfcle,. Said public service district shall be known as Logan County Pub1 ic Service Dfstrict. - .. ------. It is further ORDERED that the Logan County Public Service District sha1 1 embrace the fo11 owing terri tory: All of Logan County; Excl udlng, however: All of the munfcipallty of Logan; All of the munioipalfty. of Chapmanville; All of the municipality of Man; All of the Buffalo Creek Public Service District of the friadelphfa Magisterial District of the County of Logan, West Vlrg.infa, more at a the fully described as fot~ows: BEGINNING point in Spring. .. Mountain Lookout Tower, said point behg in the hone-Logan . County lfne; thence, southeasterly with the meanders of satd Boone-Logan County 7ine 4.25 miles, mare or 1,ess. to a pofnt in the cornon. comer to Boone-Wyoming and Logan County;. thence, southwesterly with the meanders of the Wyoming-Logan County line and with the top of Buffalo Mountain 10.65 mites, more or less, to a point in the 370 - 45' meridian Tine; thence, due I West wfth safd 37O.- 45' meridtan line 5.85 miles, more or Tess, ta a point it! the eastern corporate boundary line of Clty of i Man; thence, due Mortft.1.65 mites, more or less, to a point fn the Logan-Triadel hia Magisterial District 1fne; thence Ii northeasterly witR the meanders of said Magisterial line j5.95 miles, more or tess, to the place of beginning and containing 1 ! 43.55 miles (21,870 acres), more or less. I square I Said territory and said exclusions are more particularly shown by a map of togan Caurrty attdched' liereto and incorporated as a part hereof and outlined ! in rd, . I 1

-2- .. i i I, It is ,further ORDZZD ‘hat th3 Big Creek -Bblic Sefics Distri

i hersby am zmsolidztod with znd incoqo=atsd iPt3 the Lo- County Public Semica DistrLct . The establishent ad creation of the S-7a- Coune ,Public SeM 1 District, edmacbg the territoq above described, shall be effective usop I receipt adf?lir.g of a resolution 3x1 groger form by the City of Xltchell Heists, :-ihersby the nunicipdity of 1-S.I:tchellSei&.*3 consents to be inclu~

within the boundtry 6f the prqosed Fblic Done $his the 30 9 day of P 19: - .. - I

e.... - -. I I .. .

- ' RESOLUTION

WHEREAS, on the 5th day of May, 1975, the County Commission of Logan I i County will consider proposing the creatlon of a public service district i within Logan County, to be known as the Logan County Public Service District, and to include the following territory: .- . .- A17 of Logan County; I

Excl udfng, however= '- ----.--- * .. All of the municipality of Logan; All of the municipality of Chapmanvilte; All of the municipality of Man; and A17 of the Buffalo Creek Publlc Service Ofstrict of the Triadelphia Magisterial District of the County of Logan, West Yf-rginia. WHUZEAS, the municipalfty of West Logan cannot be included within the I boundaries of this proposed public service dfstrict without its consent; WHEREAS, the 'City Council of West Logan betieves that the proposed public sewice district wi71 be conducive.to the preservation of the public health, comfort and convenience of the municipality of West Logan and: at1 of Logan County; I; THEREFORE, BE IT RESOLVED that the munfcipatity of West Logan does i hereby consent to be included within the boundaries of the pmposed public I &- , service dfstrict. I Dated this, day of , 1975. !* /$" fbd I I ! I

I I I

f i I I

I 1 i

.. .. . I !

e I

.I I RES0 LUTI ON

WEREAS, on the f day of 2/ e.. ,.'a -> L---*/:r , 1973, the

County Commission of Logan County will consider proposing the creation of a public service district within Logan County, to .be known as the Logan County hblic Service Distr'ict, and to include the following territory: All of Logan county; I Excluding, however: . All of the municipality of Logan; All of the municipality of Chaprnanvflle; All of the municipality of Man; and I All of the Buffalo Creek Public Service District of the'Trladelphia Magisterial District of the County of Logan, West Virginia. I WHEREAS, the municipality of Mitchell Heights cannot be included within the boundaries of this proposed public service district without its consent; WHEREAS, the City Council of Mitchell Heights believes .;iat the proposed public service district will be conductive to the -preservation of the public health, comfort and convenience of the municipality of Mitchell Heights and all of Logan Comt;t;

THEREFORE, BF IT RESOLVED that the municipalityi of J.1 Heights does hereby consent to be included within the boundaries of the proposed public service district, subject to and upon the following conditions: I

I.* EO04 35 550 I , I 1. All construction within the Tom of Mitchell Heights shall comply with the ordinances of the tovm, including I thopp Hereafter enacted. I 1 2. The location of and plans for all facilities in the \ I I I TOW must have the prior written approval of the Town of Mitchell .. I I Heights. Dated this 3 day of, 5&nEM8E/ 1975 i I I I i .j-re* Upon motion this kating is continued and adjourned to the next

I Regular Session to be held on Friday, September 5, 1975, at l0:OO o'cIock

I Ab. 1 Me

PR SS I DENT APPENDIX B

MAPS PROJECT MAP ( Scale: 1" = 1 mile ) HOLDEN WATER EMERGENCY PROJECT LOGAN COUNTY PUBLIC SERVICE DISTRICT SYSTEM MAP ( Scale: 1” - 2,000’ ) HOLDEN WATER EMERGENCY PROJECT LOGAN COUNTY PUBLIC SERVICE DISTRICT PROJECT MAP ( Scale: I” = I mile ) HOLDEN WATER SYSTEM UPGRADE PROJECT LOGAN COUNTY PUBLIC SERVICE DISTRICT LOCATION MAP ( Scale: 1” - 12 miles ) HOLDEN WATER SYSTEM UPGRADE PROJECT LOGAN COUNTY PUBLIC SERVICE DISTRICT

. . SYSTEM MAP (scale: 1" = 2,000' ) HOLDEN WATER SYSTEM UPGRADE PROJECT LOGAN COUNN PUBLIC SERVICE DISTRICT APPENDIX C

HOLDEN WATER SYSTEM INFORMATION Rosemary Elmore PO Box 700 Holden, WV 25625 304-239-4610 4 [email protected] June 15,2005 05-0460- 3-c Mike Browning Executive Direct Public Service Commission of West Virginia PO Box 812 Charleston, WV 25323-0812 Dear Mr. Browning: Enclosed you will find many complaint forms which have been signed by many I residents of our community. As Mr. Tomblin's office has previously informed you, we are very upset with our water conditions. We have all repeatedly tried to call the local owners of Holden Water Company to express our concerns and problems, however, nothing is ever resolved. We have very poor water conditions. There may even be actual contamination of the water by sewer where we have such frequent breakages and leaks in the water lines. I have enclosed pictures that some of the residents have taken and I even enclosed my filter from my filtration system so that you can actually visualize what we are talking about. Hopefully this will help you with your prompt investigation. Please keep me updated as to the status of our complaint and I will keep everyone in the community informed. We are thanking you in advance for all your help. Sincerely,

L Rosemary Elmore State Public Char1cs tan

Case No. .. Complainant-

Holden Water Company De € endant

The petition of the above-named r complainant, respectfully shows :

1. That the above-named , defendant, is a public utility engaged in the business of [state the public utility business of the defendant, f.e. gas, electric telephone, etc.] at Holden. , in the State of West Virginia, and as such is subject to the provisions of Chapter 24 lor 24A) of the Code of West Virginia, 1931, as amended, and the provisions thereof applicable to said class of public utilities. 2. That the said defendant has violated the laws of the State of West Virginia, govezning said public utility business, in the following particulars, to-wit::

(a) [Here state concisely the matters complained of.]

t (b) Here state the remedy you seek (a) Poor water quality, faulty fire hydrants, substandard senrice. outan-

(b) Complete upgrade of system that: provides quality water and working fire hydrants

Wherefore, the complainant prays that the said defendant Water Company be required to answer tho charges herein above set out, and that, after due investigation, an order may be made commanding the said defendant to cease and desist from the wr'ongful conduct aforesaid, and for such other and further order as the Public Service Commission of West VLrginia may deem necessary, reasonable and just in the premises. [Prayer may ask for the asceLtainment of lawful rates of -practices, and an order r;quiring the fendant to conform thereto.] Dated this .. I ,/ . , Afltorney, if applicajle. !! 'i

-..c -..c I Attorney's Address : \I

I POOL SOLUTIONS HE;''*f-:pJq--J 300 MAIN AVE - ~ ~" I__ LOGAN,WV 25601 (304) 752-7511 2OVj :I& 1 7 AQI 9: 05

PINPOI NrMComputerized Water Analysis System I ,, , vr- 1- I, SERMCE !+;I:,- I., .I,s$ON Prepared For: chambers tina ( ) s~~~:~~;:.j-t~~OFFICE Date: 06l07l2005 Pool Type: Above-ground vinyl Pool Volume: 7,647 TapCH: 0

PB Chlorinating 3" Tablet In-Season

Test AcceDtable Rawe Ana Ivs is Saturation Index -0.10 to 0.50 0.17 Balanced Total Dissolved Solids 0 to 1,500 ppm 0 OK Free Chlorine 1.O to 3.0 ppm 3.3 HA Total Chlorine 1.O to 3 .O ppm 1.6 OK Combined Chlorine < 0.2 ppm -1.7 OK PH 7.2 to 7.6 7.4 OK Cyanuric Acid 30 to 90 ppm 12 L> Copper 0 PPm 0.0 OK Iron 0 PPm 0.2 H& Total Alkalinity I59 Adjusted Total Alkalinity 100 to 120 ppm 159 Calcium Hardness 180 to 250 ppm 276 Temperature <= 104 OF 75 OF

Note: Add all chemicals directly to pool with filter and pump running. Do not add thmugh skimmer unless specifically instructed. Read and follow all label directions for safe handling of chemicals. Never mix chemicals. After addition of any chemicals, always run the filter pump at least 8 - 12 hours. Water Balance Recommendation(s1 A high Calcium Hardness can lead to scaling. To keep the pool balanced, Alkalinity and pH must be kept at the lower end of the ranges. The following pH and Total Alkalinity adjutments are required because of the high Calcium Hardness, 0 Total Alkalinity is high - add 7.5 Ib(sJ of pH Decreaser or 3 qt(s) of muriatic acid. Do not add more than 3.5 Ib(s) of pH Decreaser or 2 qt(s) of muriatic acid in a day. Allow water to circulate 12 - 24 hours before rechecking the ph? Target pH for this test 7.4, adjust according to the chart below. 6.8 Add 0.75 Ib(s) of pH Increaser 7 Add 0.5 Ib(s) of pH Increaser 7.2 Add 0.5 Ib(s) of pH Increaser 7.4 NO ADJUSTMENT NEEDED 7.6 Add 0.75 Ib(s) of pH Decreaser 7.8 Add 1 Ib(s) of pH Decreaser 8 Add 1.25 lb(s) of pH Decreaser 8.2 Add 1.5 Ib(s) of pH Decreaser 8.4 Add 2 Ib(s) of pH Decreaser 0 CYA is low - add 2 Ib(s) of Pool Breeze Stabilizer in the skimmer to bring CYA to 40 ppm. Sanitizer Svstem Recommendation(s) Case No. 05-0900-W-C Rosemary EImore v. Holden Water Company

This petition contdns 182 sipdtures. ( ,+/' The following personihng in Holden WV 25625 (area code 304), have filed individual Formal Complaint Forms in support of the above-styled complaint. The Formal Complaint Forms are ONLY in the Secretary's Original case file.

Name Address Phone

600 Park View

Lillian Cornonyak I Box 542 1239-2055 I Cynthia Lowes 601 Park Terrace, Box L 239-28 17 Guy Lowes 601 Park Terrace, Box L 239-28 17 Richard T. Burner 6OOPark Terrace Road 239-2747 Case No. 05-0900-W-C 3rT1 ' .-Ii Rosemary Elmore v. Holden Water Comoanv I.

This petition contains 182 signatures.

The following persons, living in Holden WV 25625 (area code 304), have filed individual Formal Complaint Forms in support of the above-styled complaint. The Formal Complaint Forms are ONLY in the Secretary's Original case file.

Monroe Tomblin not given not given Mary Comonyak Box 542 239-2085 'P Lillian Comonyak Box 542 239-2085 Cynthia Lowes 601 Park Terrace, Box L 239-2817 I5 Guy Lowes 601 Park Terrace, Box L 239-28 Z 7 Richard T. Bunner 600Park Terrace Road 23 9-2 747 A 1,

It Jean Burner 600Park Terrace Road 1239-2747 -~ Steuhanie Grimrnette 604 Victory Point 239-2270 1 Patricia Kolovich Box 344 239-6 104 Judy Adkins Box 283 I 239-2621 i ~ -~ I Julius Sabo 601 Parkview 239-2057 i Joe A. Hall 502 Trace St Not given I Opal Runyon not given I not given j Roy Parsons PO Box 225 239-2405 Jennifer PO Box 225 239-2405 I Parsons i I Janice Borth PO Box 220 239-6 1 19 i Michael Borth PO Box 220 239-6 119 1 William C. Borth PO Box 220 239-61 19 I i Gladys Chafin Valley View Dr. # I2 239-3982 Edna Jeffrey PO Box 65 239-3283 i I Vickie Jeffrey PO Box 406 239-3842 1 LeVerne M. Hall 502 Trace St not given ! Danielle Jeffiey PO Box 406 239-3 842 i PO Box 1563 239-2743 ! PO Box 406 239-3842 I I Danny Jeffrey PO Box 406 239-3 842 ! Claudine Maynard Box 195 not given I /1 Vivian Vanover Box 196 239-2465

I Glen Lanthome PO Box 145 239-32 1 1 I Darleen Spears P.O. Box 298 239-3836 I 3eorge Kirk P.O. Box 562 none listed ! kVilIiarn Eppicl 1 Bungalow Woods Drive 239-3458

I! 3ernice Roberts P.O. Box 254 23 9-3388

! anet Grieme P.O. Box 254 239-3388 I I 1 Ruth Bazzilla Box 601 239-2479 Debbie Barnette P.O. Box 65 239-3541 Tina Woods Chambers P.O. Box 275 239-3992 Carol J. Holbrook Box 40 239-3 103 Kanawha Holbrook Box 40 239-3 103 I I April Workman Elmer Workman Box 340 239-2790 Tiffany Mayo P.O. Box 455/623 Beebe Street 239-2766 Ralph Tomblin Box 564 239-3998 Timothy Hosier Box 359 239-3696 Ted Roth Box 36 239-3236 George Likars, II P.O.Box 76 239-2282 Veronica Maynard 1 Box 434 239-323 3 Cassie Adams Box 434 239-3233 Virginia Workman Box 340 239-2790 Cathy Pack Box 1054 239-2832 George Hill P.O. Box 569 23 9-2409 Donna Hill P.O.Box 569 239-2409 Thomas W. Marcum Box 641 2 39-2244 Brandon Bryant P.O.Box 133 23 9-3 952 Lana Marcum P.O.Box 641 239-2244 Amber L. Walsh Box 171 239-2222 Geraldine Butler Box 58 239-2022 Denny Mahone P.O.Box 80 239-2912 Barbara Lanthome 22 Valley View DriveiP.0. Box 145 239-32 1 1 Cora, WV 256 14 Patsy Smith P.O. Box 203 239-3267 Rose Mahone P.O. Box 203 239-3267 Sandra Stout P.O. Box 279 23 9-3 629 Stephen Clemens Box 336 none listed James H. Collins Box 638 239-2 184 Roger J. Spencer P.O.Box 245 239-6303 - Beatrice V. Nunley Box 129 239-3665 Dena Spry Box 167 239-2229 I Harold Stambaugh 603 Hamilton Road Whitman, WV 25652 I 239-0043 Ins I Box 336 L39-006 1 I Barbara Stambaugh 603 Hamilton Road Whitman, WV 25652 239-0043 ~ ~ I - ~-I I Gail Coleman P.O.Box 732 239-335 1 Delma Ellis P.O.Box 487 none listed Barbara Collins P.O.Box 673 239-2267 David Summers 3 10 Garden Avenue 239-2 108 Jerry D. Workman P.O.Box 710 239-2939

I Reba Donahue Box 353 239-2877 I Dana Keith Blair P.O.Box 5 15 239-2662 Michael Anderson Box 74 23 9-6305 Danette Anderson P.O.Box 74 239-6305 Terra Collins P.O.Box 657 239-3957 Oretha Collins Box 657 239-3957 Ernest Lee Collier Sr. Curry Hollow 239-3866

Ronald Barnette P.O.Box 284 1 239-3662 Any Adkins P.O. Box 755 239-3690 George Lukacs P.O.Box 740 23 9-2204 Judy Lukacs P.O. Box 740 239-2204 Diana Barnette P.O.Box 284 239-3662 i !

I ! Rebecca Nasy Box 820 I 239-21 11 I I Darren Belecher P.O.Box 77 1239-3814 I I Kenneth Hughes P.O.Box 226 I 239-3317 I Pam Hardesey Box 652 1239-2933 I ~~~ ~ ~~ ~ I Nina Mahone P.O.Box 80 239-2912 Susan Belcher P.O.Box 77 239-3 8 14 I -~~~~~ I Belinda Diamond P.O.Box 788 239-3013 I Jonathan Spry P.O.Box 167 239-2229 I Karrie Lynn Spears P.O.Box 572 239-3650 i Oddetta Frye P.O.Box 402 239-2084 i Lavetta Frye P.O.Box 866 239-6253 Kristin Collins P.O.Box 32 239-6278 I James Frye P.O.Box 402 239-2084 1 Lome1 Mapel P.O. Box 415 23 9-2986 I Armenta Frye P.O.Box 415 239-2986 I Ben Collins P.O.Box 276 239-271 8 I Terry Couins P.O.Box 657 23 9-3 957 I Hill Box 205 239-2409 I Chris P.O. Betty White P.O.Box 575 239-3584 I Rita McKinney P.O.Box 732 239-3 155 I Patricia Curry P.O. Box 406 239-33 14 1 Jeanine Nelson P.O.Box 631 1 239-3098 Charles Curry P.O.Box 406 239-33 14 I Donald Wayne Workman P.O.Box 110 239-3 156 I I Joe Codispoti PO Box 45 239-2238 Joe Lukacs III 3 18 First Davis 239-0007 I Amy Jones PO Box 259 23 9-2345 I Antonio Matthews PO Box 61 Cora, WV 25614 239-3 1 17 I Sebrina Toney PO Box 1563 Logan, WV 2560 1 239-2743 Donald Evans PO Box 93 Cora, WV 239-2741 Sue Adams PO Box 654 NIA Linda Evans PO Box 93 Cora, WV 25614 239-274 1 Lonnie Gore PO Box 445 NIA Odessa Hanshaw PO Box 486 239-2509 Carol Ross PO Box 707 239-61 12 B. Barnette N/A NIA L. M. Dion PO Box 71 239-2504 I Bryan Scott Stidham PO Box 2022 Logan, WV 25601 239-3991 Gregory Stidham PO Box 2022 Logan, WV 25601 239-3991 Buddy Stidham PO Box 2022 Logan, WV 25601 239-399 1 Robin Stidham PO Box 2022 Logan, WV 25601 239-3991 IIeta McCallister PO Box 795 239-2071

Emory Spaulding PO Box 866 )239-6253 ~~ ~ I I Rhonda Richards 403 Merrill Street 239-201 9 Shawntez Matthews 412 2"dDavis Street 239-2375 Kendra Matthews 412 2"d Davis Street 239-2375 Keisha Fields 3 11 Lyman Terrace Hill 239-36 13 Kenny Fields 3 11 Lyman Terrace Hill 239-3613 Debbie Fields 3 11 Lyman Terrace Hill 239-36 13 Ruby Robinson 3 10 Lyman Terrace Hill 239-3 532 Terry Robinson PO Box 69 239-3532 Shirley Elmore PO Box 341 239-3715 Larry Elmore PO Box 341 239-3715 David Lanthorne PO Box 145 Cora, WV 25614 239-32 1 1 Krista McKnight PO Box 324 Cora, WV 25614 239-2903 Kevin McKnight PO Box 324 Cora, WV 25614 23 9-2903 June 24,2005

Holden Water Co. Drawer A Holden, WV 25625 CERTIFIED MAIL RETURN RECEIPT REQUESTED Public Service Commission of West Virginia 201 Brooks Street, P.O.Box 812 Charleston, West Virginia 25323

ATTN: Sandra Squire Executive Secretary RE: CASE N0.05-0900-W-C Rosemary Elmore V. Holden Water Co. Dear Ms. Squire: This is in reply to your formal complaint as stated above. would like to supply you with some Information. We send 2 samples of our water each and every month to the State Health Department located in South CHarleston, WV, and they then send us a report on the quality of these samples. We have always met the necessary requirements. We have a number of fire hydrants located in this area and we were not aware that any of this equipment was faulty. When we have water breaks or outages, we have to shut off the water in the affected area and the amount of time the water service is discontinued varies. This is determined by the amount of time that: it takes to repair and maintain these lines and etc. We have tried to purchase water from the Logan Water Board in the past and have been unsuccessful. We have contacted Mr. Willard Adkins who is the plant manager concerning this matter but we have been unable to attain any results. At the present time we are negotating with the Logan County Public Service District concerning the sale of our water company to them. I have a meeting scheduled with Mr. Rick Roberts pertaining to this matter next week, You may want to verify this with Mr. Roberts, We have also tried various times to secure funding and loans for improvements and additional equipment and we have not been successful. There are not any federal or state grants or loans available for private companies in the utility business., Here recently I contacted Hr, John Aubille with the Public Service Commission in Charleston and he is arranging to send an engineer from there to advise US. The Holden Water Co. has been in business since 1993 and we have never applied for a rate increase. We have tried to keep the cost of water down in our area. Another major problem is the hiring of general laborers to do maintenance and heavy work in outages and etc. With workers compensation, welfare and drugs so prevalent it: is virtually impossible to hire anyone. And last but not least, as for Mrs. Elmore, whenever she has had a complaint we have always contacted her personally and we have tried to assist her in any way possible. If we can be of any further assistance, please do not hesitate to contact us.

Sincerely yours,

Charles R. Adkins, President Holden Water Co. 5?ut~cdruicr Cornmimion o/ X*f2r, IP inia I 201 %,,A, Jfreof, TO.go* 8f2 9.one: (304) 340-0300 bob) 340-0325 I CXori'erton. 7K.f Yrginio 25323 mx*

E September 22,2005

Rosemary Elmore PO Box 700 Holden, WV 25625 Charles Adkins, President Holden Water Company Drawer A Holden, WV 25625 James R. Jeffiey, Chairman Logan County Public Service District PO Box 506 Logan, WV 25601

RE?: Case No. 05-0900-W-C Rosemary Elmore V. Holden Water Company

Ms. Elmore and Gentlemen:

Enclosed is a copy of a Commission Order issued today in the above-styled proceeding.

Reminder - if you,submit any additional documents - in addition to filing an original and 12 copies of all documents with the Commission, you are required to mail a copy to all other parties of record.

Please visit our Internet web site at www._nsc.state.~~tv.us.

Executive Secretary

ss/cg Enc. order I.-

050900com092205.wpd PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON

At a session of the Public Service Commission of West Virginia, in the City of Charleston, on the 22ndday of September, 2005.

CASE NO, 05-0900-W-C

ROSEMARY ELMORE, PO Box 700, Holden, Logan County, et al., Complainants,

HOLDEN WATER COMPANY, a corporation, Defendant.

COMMISSION ORDER

The Commission requires an answer to be verified, adds a party, and sets filing deadlines in this matter.

FINDINGS OF’FACT

1. On June 17,2005, more than 180 customers signed separate formal complaints against Holden Water Company, alleging poor water quality, faulty fire hydrants, substandard service, and outages. They asked for a “complete upgrade of system that provides water and working fire hydrants.”

2. On June 24,2005, Holden advised that it sends samples twice a month to the Health Department and that the samples always meet the necessary requirements, Holden said it was not aware that any fire hydrants were faulty, and that the length of outages depends on how long it takes to repair a line break. Holden has been negotiating with Logan County Public Service District “concerning the sale of our water company to them.” As a private company, Holden said it has not been able to secure funding and loans. Holden’s answer was not verified.

3. On July 20,2005, a December 20,2002, Health Department report was filed, which listed several simificant deficiencies in Holden’s system (emphasis in original),

Public Service Commission dWcst Virginia Charleston 4. On September 15, 2005, Commission Staff advised that it had provided Holden with some suggestions to improve the quality of service in the short-term. Further Joint Staff Memorandum p. 2. Staff also advised that the best long-term solution was the sale of the water system to Logan County PSD. That process, however, takes time. Staff recommended that it be allowed one year to monitor this matter and that Holden be required to file quarterly progress reports as to the progress of the sale.

CONCLUSIONS OF LAW

1. All formal complaints, answers, applications and petitions must be sworn to, or verified, &g Rules 6.2.d and 7.1 and Forms 1-1 1 of the Commission’s Rules of Practice- and Procedure, 150 C.S.R. Series 1. Within ten (10) days of the date of this order, Holden shall file a verification to the answer. Holden may use the form verification attached to this order.

2, Logan County Public Service District may be involved in the resolution of this matter, Accordingly, Logan County PSD should be made a party to this case.

3. The Commission agrees with Staff that it may take several months to process the sale of a utility. Accordingly, Staffs final memo due date should be extended and Holden should be required to file quarterly progress reports.

ssion commends the parties for working together on a long-term ssures the customers that this matter es are available to aid the parties in resolving this matter as expeditiously as possible.

ORDER

IT IS THEREFORE ORDERED that within 10 days of the date of this order, Holden shall file a verification to its answer. Holden may use the verification form attached to this order.

IT IS FURTHER ORDERED that Logan County Public Service District is joined as a party in this proceeding.

IT IS FURTHER ORDERED that Staffs motion to extend the deadline to file its final memo is granted. Staff shall file its final memo on or before September 16,2006.

Public Service Commission d West Virginia LI I . IT IS FURTHER ORDERED that Holden shall file verified progress reports on or before the following dates:

December 19,2005 March 20,2006 June 19,2006 September 6,2006

IT IS FURTHER ORDERED that the Cornmission’s Executive Secretary serve a copy of this order upon all parties of record by United States First Class Mail and upon Commission Staff by hand delivery.

A True Copy, Teste:

Snndri Squire Executive Secretary

CLWIsek 050900c.wpd

3 Form No. 12 VERIFICATION

[To be added to all complaints, answers, applications and petitions.]

State of 9

County of , ss.

., the

of ,the

named in being duly sworn, says that the

facts and allegations therein contained are true, except so far as they are therein stated to

be on information, and that, so far as they are therein stated to be on information, he

believes them to be true.

Affiant

Taken, sworn to and subscribed before me this day of

Notary Public in and for said County.

My commission expires on the day of 5

~- Public Service Commission of West Virginia e-L-.J--Lm.. STATE OF WEST VlRGlNllA 1 DEPARTMENT OF HEALTH AND HUMAN RESOURCES I' bobwise Paul L p.7, *.! I, Govemo.: Fcrv'; Dccmber 20,2002

Mr, Rick Adkins I Owner, Holden Water Company I Drawer A Moltlen, WV 25625

I RE: Holden Water Company - Sanitary Survey PWSID No. WV3302339 Logan county

Dear Mr. Adkins:

On December IO, 2002 , a sanitary survcy was initiated on the above referenced growt4 water treatment facility and distribution system by Patrick M. Murphy, Engineer-in-Training I!, :9ockhy District Office. This survey was condudted in accordance with the requirements of ths 'West Virginia Administrative Rules.

The ~urposesof the survey ore to detcrmine if the system is meeting the regalatory requhements ofthe Rules, provide the opportunit\/ to offer technic81 assistance and provide a report that presents the basis for future corrective actions, if necessary.

'me following sinnilicanf deliCzencics were found during the survey:

There are meters withinthe systtim that being flooded with failing septic tank run-off.

I) The Bungalow Woods subdivisiorr was permittcd with the stipulation that no fire hydrants be installed due to inadcquate storage. At the time of the survey, fire hydrants were instalItxI.

e There is no emcrgcncy response plan in-place for situations where wafer would bc unavailable for long periods of time.

S ~Envinmnntol'Eneineh7ng'Pm\SenSurvy\t I ildcnCovizwpd

----.e. bn-7 I -Y iw-wmaw.-- rrr~'-wa.rmamn- r+ BUREAU FOR PlJBLlC NEALTH bfflce of Environmental Health Servlcar BECKLEY DISTRICT C)FFICE 103 North Kanclwha St., Eait Bulldlng, SuNe 20 1 Beckley, WRst Virginia 25801 Telephone: (304) 256-6666 FAX: (304) 256-0672 Mr. Rick Adkiiis December 20, 2002 Page 2

'Ihe system must respond, in writing, to the significant deficiencies outlined above no later than 45 days aftct rcceipt of this report. The rcspoiisc should outline how arid on what schedule th system will address the significant dcficicncies.

Shoultl you have any questions or comments regarding this survey please feel fixe tu 01) ~IW? nrc st 304-256-6666.

Sincerely,

Potrick M.Murphy, E.]. Eii~inerr-in-Ti,ainin~11 Environmental Engineering Division

.4ttachmcnt c: Amy SWM, Public Service Cornmissiori Logan County Health Oeprlrtrnent Robert N Had, P.E., District Office Coordination Manager, OEHSEED Gary K Wilson, P.E.,Supervising Engineer, Beckley District Office S U MM ARX A sanitary survey of the Holden Water Company treatment plant and distribution system was initiated on December 10, 2002. The purpose was ra evaluate the water quality, monitoring procedures, Jislnbution of finished Hater, finished water storage and management of the system. The treatment plant is located adjacent tc U.S. Route 1 19 in the Town of Holdcn. Monitoring of water quality includes total and fiee chlorine residuals, pM, alkalinity, hardness, irun and bacteriological testing. Less froquent analysis is performed for inorganic$, VOC's, SOC's, radionuclides, nitrate, lead and copper and unregulated contaminants.

Basic Data: Plant Classification: Class I1 - Ground Source: No. 1 Junior Mine Population Served: 1628 Metered Customers: 620 Residentiai 29 Commercial Owner Rick Adkins, Class It PO Box 131 Holden, WV 25625 Opcraturs: Rick Adkins, Class If, Chief Sham Adkins, Class TI

Oftice Address: Drawer A Holden, WV 25625 304-239-2461

Significant Deficiencies Significant deficicncies noted during the course of the survey are as follows:

0 'I?lcrc arc meters within the system that are flooded at times during the 3t~f with failing septic system mnoff. The Bungalow Woods subdivision cxtcnsion was approved .i.ifh dit: i stipulation that no fire hydrants be installed due ta inadequate storage lo provide fire protection. At the time of thc survey, fire hydrmts were present.

r) There is no formal cmergtlncy response plan in-place fbr situntions where

water would he untkvtailuhle for lung pcrioda of time.

1 Other Deficiencies

Deficiencies, other than significant, that WMC idcntifid during thc survey 3te RS fi)llow;: The clearwell is not adequately protected from outside contamination.

1 hc usagc; of lime in the trcatmcnt proccss is not being recorded OM the MOR.

0 There itre some distribution mains within the system that are less than 2 inches in diameter.

0 The system does not meet the 2 day's minimum storage requirement.

0 The 250,000 gallon main tank is in need af repainting. Dackwash rate is not adequate for proper cleansing of the media.

There is r.0 master meter iit the plant to measure production.

0 The system has no cross-connection control program.

0 The bacteriologiical sampling plan needs to be updated to reflect that two samples per month am being obtained.

0 'lhwis no chlorine teak detector located in the plant. Recommendations Adcqurrtely seal operiings into the clewelf to prcvcnt contamination. Begin recording lime usage on the monthly operational reports. (Jpgrade distribution main lines that are less than 2 inch in diameter to meet WV Bureau for Public Health design standards, I Construct additional storagc facility to provide the minimum 2 day's storage requiremcnt. Dririn, inspect, stuldblast and paint the interior and exterior of the 250,000 main tark J1cpJac.c backwash pump with onc that will provide a minimum of 15-20 byrn backwash rate,

Install A mastcr mctcr at the plant to record watcr produced so that accountability can be adequately determined. Dcvclop and implement a formal cross-connection control progrsm. i Revise \)acterinlogical sampling plan into four zones. Alternate where sanple:,;.ti 4 tijkm eoch month. (i.e. Zones I and 3 one morith, tken Zones 2 .wid 4 the aextj. fhure th+ zones stunpled each month are located on different ends ofthe system.

2 e insttill a leak detection device in the plant for pmsonnel safety. i a Devclop and implement a formal emergency response plan.

--SOURCE Raw WilICr is obtained from the No, 1 Junior Mine. There are also two backup wclls, which can be used during emergency situations. The wells hove never been used; however, water is pumped from them periodically in order to exercise and test the pumps. The pumps arc adequately protected from contamination. A vulnerability assessixen! was conducted in March 1996. It was determined that the %wellsmay he vulnerable to stable orgmic contaminates (pesticides) and VOC's.

TREATMENT Raw water is pumped from the mine at a rate of 350 gpm. The water first passes through

ia 10 tray aeration unit to oxidize iron and mangarlese. From the aeration unit, water flow to R 6000 gallon rapid mix basin where chlorine, lime and soda ash are added. Chlorinc gas is added 1 for disinfection, while lime and soda ash are sddcrl for flocculation and pH adjustment. From ih- rapid mix basin, the water flow to a 100,000 gallon sedimentation basin. The water circulates chrough the sedimentation basin through if series of four bames before exiting througt) M overflow weir to the filters. There rue two 132 ft2 each circular mono-media filters, which we used simultaneously, 'me age of thc filters and original design depth of the media are unknown. Approximately three inches of new media was recently added. The backwash pump also hnctions as the backup hi@ service puriy:. It is o 60 hp centrifigal pump that provides approximately an 8.4 gpmii'r' backwash rate. Thc minimum recommended backwash rate is between 15 and 20 @mitt2. From the filtcrs, water flows to a 35,000 galIon clearwell. 'The clewelf was last drained rmd cleaned in 10%. The high service pumps are activated by hat when it becomes fill. Whm I flowing tull, tf ~t:clearwell provides approximately IO0 minutes contact time. hnmediately after backwash, the clcanvell provides approximately 65 minutes contact time. 'Ihc chlorine room is located inside the plnnt. It has an interior door with a window and l is adequately lentilated. 'The tanks are sccured with chains and the scales are operakli-

Arntnaniti IS rise for leak detection and two canister-type g:w inasks ate the only bresfhi )I>

3 upparatus avnilabl~lo protect from t\ chlorine gas leak. The chlorine mom is located on thr* I second floor. This poses a serious threat to personnel whose place of duty is on the first floor in thc event thew were a leak. Sludge from the sedimsntution basin md dcwell and backwash water is drained into Trace Fork. Past sanitary survey infonnatic;n indicntes thit the DEP was iiotifid of thi:

procedure, hit determined that there was insufficient room at the plant for llolden to build t~ sludge basin nwd to mcet discharge requirements. Therefore, tlolden continues this procedure for sludge disposal.

I DISTRIBUTION 'Ttie distribution consists of spproxirnatcly 12.7 miles of one to eight inch diameter PVC, galvantzed iron, and cast iron pipe. Approximately 2.6 miles of distribution (main) is smaller than two inch diameter. Mapping of the system exists; however it is old and does not show current conditions. All smice connections are metered. Meter testing is conducted by the City of Logan water treatmerrt facility. There are problems with some metas being flood& by failing septic tank nmofi: Wntcr accountability cannot be determined because there is no master meter at the plant. I Thcrc are 41 fire hydrants located in the disttibutiort. Flow measurements were Inst conducted in 1996. The recently constructed Bungalow Woods subdivision extension wac immitted without fire hydrants due to the fact that the storage tank was of itwff3cient size to provide fire Row. At the timc of this survey, there was at least one hydrant located in the !iubdivision. In the cvcnt of a fire, the system ixuy not be able to provide adequate flow.

FINlSHED WATER STORAGE 'The Holden systcm provides an approximate total of 285,000 yAlons storage. A brief tiescription uf'each sliucture is lis follows:

Mairi Tank: A 250,000 gallon welded steel tank, The paint is peeling and the seams rusting. The ai! \lent is screened and hatch locked. The tank is not fenced, but tho ladder is cut off at the bottom and cannot he access without an additional ladder. The water level is detcnnined murtually. No. 51 I'arrk: A 15,000 gailon weided steel tank. The tank is in good condition. Tlin water level is controlled by telcmetry. The vent is screened and the hatch locked. The tank is riot fenced, hut has a locked ladder. The vault drains well and is kept locked. I Bungalow 'Tank: A 70,000 gallon steel tank. This is a new tank and is in excellent condition. The vent is screened. This tank provides storage for the hngalow Wocifs subdivision. The tank is af insufficient sizc to providz fire flow to the Bungalow Wof)dq subdivision whcr, it becomes fi.~llydeveloped. PUMPSIPUMP FACl LIT1 ES There a1.e a total of six pumps located throughout the system. A brief description of each pump and/or facility is as follows: Bungalow Booster Station: A newly constructed booster utilized to pump water to the Bungalow Wuods tank. 'T'here itre two 5 hp pumps locatcd at this facility. The pumps we housed in 9 171 rck structure and secured by locked door. No. tI Booster Station: This station conlains two 1-5 hp, 22 gpm pumps which puriip watcr to the TJc. 2 I tank. The structure and pumps wue in good condition. High Service Pump: A 75 hp, 350 gpm pump. The pump is in good condition. There is only one dedicated high scrvicc pump. Backwash Pump: A 60 hp pump; capacity unknown 'nre pump is inadequate for it's use ;Hid needs to bc upgraded. The pump serves as hackup high service pump. I ~.IO~I'TQIRLINC;/REPORrING I 1 The iiwnitoring and reporting records were reviewed for the past live years. 711.3 following findings were detailed in those records: I I Monthly Operating Reports: The system is not reporting the usage of lime on its ilperating reports. The records are being retained properly. Bacteriologicsl Sampling: Thc bactcrioiugicat results are being maintained RS requir+z'

There have heerr ntj positive samples over the last five years, 'The satiipling plan is set up for CLI-,

sample pcr month aid nccds to Le rcvised to show two samples.

S i

Lead and Copper: 'The system is currently on reduced trionitorin&(triennial) for lead

and copper und tiia: next monitonng is due by 2003. Radionuclidcs: The systcfn tested fot Gross Alph~,Radium 226 und Radium 228 in 2001. The next sample is due in 2005. Since the system hm tested far Gross A.lpha, Radium %')6 and 228, it mu)' qualify for the grandfather monitoring waiver. This waive will be deterinincd nt a later date. Organics: The systmn tested for VOC's and SOC's in 2001. 'Ihe next sample is due before Dectwit)l:r 3 1, 2004. fnorganics; The system tested for inorganics in 1999. The next sample is due behe December 3 I. LOO4. The following in-plant laboratory monitoring equipment is present and utilized: E3uiDrnent Putposa Condition HACH CN-67 C12 Residuals Good HACH 17-F Fluoride Coilcentration Good I-IAOH HA-4P-MG Alkalinity Good

MANAGEMENT The Holden Water Compaiy is a privatcly owned company. The owner, Hick Adkim, administers Day to day management functions. The system appears financially capable (4 performing minor rcpairs and upgrades; however, it is not in a situation to make vignificrrrtt capital imp:ovements.

OPERATOR COMPtlANCE 4IolJc11Water employs two certified operutors. (See Basic Data section for nmes ,-Jd certificatiorr riuriibtxs.) 'The operator's certifications are cunent and displayed within the pbd. Both operator9 are adequately ttaincd and competent to run the system. SYSTEM MAP EXISTING HOLDEN WATER SYSTEM ( scale: I"= z.0oc ) LOGAN COUNTY PUBLIC SERVICE DISTRICT APPENDIX D

ENVIRONMENTAL LETTERS LOGANCOUNTY PU5MC SERVICE DISTRICT

BOARD .MEMBERS: .~illileSR. .Ii;fjrey, Cliciir Betr E Lowe, Jt: September 2,2005 Mike Stow .MArVAGING EiVGIiV EER: Rick Roberts, I? E. Ms. Barbara Sargent, Data Coordinator Natural Heritage Program Department of the Commerce, Labor and Environment Division of Natural Resources P.O. Box 67 Elkins, WV 26241

Re: Holden Water System AcquisitionAJpgrade Project Phase I & I1

Dear Ms. Sargent:

It is the request of the Logan County Public Service District that your office examine the proposed project and provide the District with an Environmental Evaluation for the project. Your findings will be included as part of our environmental review of the project,

If you have any questions, please let us know.

Managing Engineer

LOGAN COUNTY PSD

C R R :mj g .Attachmetit: ;is stated LOGANCOUNTY Puerrc SERVICED~STRICT BOARD ME'WBERS: Jririres R. Jc:flrey, Chi Bert E LOUV,JI: September 2,2005 .Mike Smile MAiVAGING EiVGINEE Rick Roberts, fi E.

Mr. Christopher M. Clower, Supervisor U.S. Department of the interior Fish and Wildlife Service West Virginia Field Ofice P.O. Box 1278 Elkins, WV 26241

Re: Holden Water System Acquisitioflpgrade Project Phase I & I1

Dear Mr. Clower:

It is the request of the Logan County Public Service District that your office examine the proposed project and provide the District with written comments regarding the presence of rare, threatened or endangered species andor wetlands in the area. Your findings will be included as part of our environmental review of the project.

If you have any questions, please let us know.

'Rick Roberts, P.E.' Managing Engineer

LOGAN COUNTY PSD LOGANCOUNTY Pusrrc SERVICEDismcr BOARD MEMBERS: Jmiirs R. Jefliey. Clillir Ben E Lowe. Si: September 2,2005 Mike Stone IWAVACfNG EiVGINEER: Rick Roberts, f! E.

Mr. Allen Boone Soil Conservation Service 365-2 Walnut Street Hamlin, WV 25523

Re: Holden Water System AcquisitiodUpgrade Project Phase I & I1

Dear Mr. Boone:

It is the request of the Logan County Public Service District that your office examine ~ the proposed project and provide the District with input regarding soil and subsurface conditions within the project area. Your findings will be included as part of our I environmental evaluation of the project. If you have any questions, please let us know. I

Rick Roberts, P.E. Managing Engineer

LOGAN COINTY PSD ! C RR: nij g ,\ttnchment: as stated I I

, LOGANCOUNTY

BOARD MEMBERS: .hties R. J@ey, Clrtri Bsti F: Lowe, Jt: September 2,2005 Mike Stone .MAiVAC;ING ENGINEE Rick Roherts, RE.

Mr. Richard P. Buckley i Department of the Army Huntington District Corps of Engineers I 502 Eighth Street Huntington, WV 25701 Re: Holden Water System AcquisitiodUpgrade Project Phase I & I1

Dear Mr. Buckley: Logan County Public Service District is proposing to construct a water distribution system to serve the unincorporated communities of Holden, Whitman Junction, Trace Junction, Beebe; Frogtown, Sycamore, Diamond, Davis, Sulphur Springs and surrounding areas of Logan County (see attached maps). The project will consist of 12-inch and smaller diameter water mains being installed primarily along US 1 19, County Route 9/2 and numerous other secondary roads. A current unknown number of crossings of Copperas Mine Fork, Trace Fork and other smaller streams will be included as a part of this project, We are requesting that your office review the enclosed maps and offer any comments pertaining to the occurrence of wetland or any other comments on area hydrology which you feel may be appropriate. Your comments will be included in our environmental review of this project.

If you have any questions, please let 11sknow,

Rick Roberts, P,E. Managing Engineer LOGAN COUNTY PSD LOGANCOUNTY PUBLIC SERVICE DISTRICT BOARD IMEIMBERS: Jmiies R. Jeffrey, Cliciir Brit E Lonv. JI: September 2,2005 Mike Stotie .Ci..lNAGING EiVGlNEER: Rick Roberts, f? E. Ms. Susan M. Pierce, Deputy State Historic Preservation Officer The Cultural Center 1900 Kanawha Blvd., East Charleston, WV 25305

Re: Holden Water System AcquisitionAJpgrade Project Phase I & I1

Dear Ms. Pierce:

Logan County Public Service District is proposing to construct a water distribution system to serve the unincorporated communities of Holden, Whitman Junction, Trace Junction, Beebe, Frogtown, Sycamore, Diamond, Davis, Sulphur Springs and surrounding areas of Logan County (see attached maps). The project will consist of 12-inch and smaller diameter water mains being installed primarily along US 1 19, County Route 9/2 and numerous other secondary roads. No existing structures will be damaged or otherwise adversely affected as a result of this project. It is believed that it is very unlikely that any historic/archeological sites exist in these areas,

It is the request of the Logan County Public Service District that your office examine the proposed project in accordance with the procedures for protection of historic and cultural properties to identifjl any know historic/archeological resources within the project area that are either listed on the National Register of Historic Places or considered to be of local and state significance and perhaps eligible for listing in the National Register.

Please provide a written determination of your finding, which will be included in our environmental review of this project.

If you have any questions, please let us know.

kick Roberts, P.E. bl aiiaging Engineer LOGAN COUNTY PSD c' R R:nij g APPENDIX E

EXISTING TARIFFS 1. 0. aom 8 P. E. a. W.Ye. No..-._____..,_.._ 1 I#

dba HPLDEN COMPANY CHARLES and SANDRA APKINS,,. WATER (Niama ot Utllltyl

Y - Rates, Rules and Regulations for Furnishing WATER

Filed with THE PUBLIC SERVICE COMMISSLON OF WEST VIRGINIA aaaued ...... June 7 2 ...... , lg,.93 .... ERCCtlV2 June 27, I - -1 10.93. - Cssued by authority of an Order >f the Public Service Commission >f West Virginia in Case No, Charles and Sandra Adkins, $I 32-1158-W-PC dated June 7, 199.3. Isnaed by ...... HOLDEN WATER COMPANY (Name 4C Vtiiliy)

By...... &LP& ...... I.....---.--...... --.--"-.....-. #

EAT33 - PYW t

ApPLICABZLITP

Applicable la Holden and Camps Nos. 5, 6, 7, 8 and 21 of the Island Creek Coal Company, Logan, County. AVAILAEXLTTP: OF SERVICE

Available for general domestic, comercia5 and industrial service. '

First 2,000 gallons used per month $7.58 per 1,000 gallons Bext 2,000 gallous used per month $5.99 per 1,000 galloas Next 6,000 gslluas used per month $4.89 per l.,OOO galloas Ul. Over lb,000 gallons used per month $4*25 per 1,000 gallons

No bill will be rendered for. less than the following amouars, according to the size of the meter installed, to-wlr: 5/8 inch meter or leas $ 15.16 per month 3/4 inch meter 22.75 per month 1 inch meter 37.90 per mouth 1-;t/2 inch meter 75.80 per maath 2 iacb aretet . 131.30.'per month

PBUATE FIRE PROTECTION Island Creek Coal Company $ 235.00 per month

The above tariff is net. orl all current usage billings not paid withip tweaty (20) days, ten percent (10%) will be added to the net current wunt unpaid. This delayed payment peaalty is not intereset add is to be collected only once far each bill where it is appropriate, LOGAN COUNTY PUBLIC SERVICE DISTRICT, a public utility

Logan, West Virginia RATES, RULES AND REGULATIONS FOR ELTRNISHING WATER

in the Counties of Logan, Lincoln, Mingo, Boone and Wyoming, West Virginia Filed with THE PUBLIC SERVICE COMMISSION of WEST VIRGINIA

Issued March 8,2006 Effective for service rendered on and after January 26,2006 or as otherwise provided herein

Issued by authority of an Order of the Public Service Commission of West Virginia in Case No. 04-0575-PWD-CNdated June 16,2004 or as otherwise provided herein.

Issued by LOGAN COUNTY PUBLIC SERVICE DISTRICT, a public utility

I I Title I T \TARIFFS\WATER\LOGAN_CNTY_PSD_#1ZW_(CURRENT) DOC LOGAN COUNTY PUBLIC SERVICE DISTRICT (Water) P.S.C. W.VA. Tariff No. 11 11 Original Sheet No. 1

I RULES AND REGULATIONS I. Rules and Regulations for the Government of Water Utilities, adopted by the Public Service Commission of West Virginia, and now in effect, and all amendments thereto and modifications thereof hereafter made by said Commission. LOGAN COUNTY PUBLIC SERVICE DISTRICT (Water) P.S.C. W.VA. Tariff No. 12 Original Sheet No. 2

WATER SCHEDULE NO. 1

APPLICABILITY Water rates applicable in all areas served by Logan County Public Service District

AVAILABILITY Available for residential, commercial, governmental, industrial and resale service

RATES First 2,000 gallons used per month $8.47 per 1,000 gallons Next 58,000 gallons used per month $8.11 per 1,000 gallons Next 240,000 gallons used per month $5.98 per 1,000 gallons AU Over 300,000 gallons used per month $3.13 per 1,000 gallons (C) MINIMUMCHARGE

5/8 inch meter $ 16.93 per month 3/4 inch meter $ 25.40 per month 1 inch meter $ 42.34 per month 1 - 1/4 inchmeter $ 61.82 per month 1 - 1/2 inch meter $ 84.68 per month 2 inch meter $ 135.52 per month 3 inch meter $ 254.06 per month 4 inch meter $ 423.44 per month 6 inch meter $ 848.47 per month 8 inch meter $1,358.85 per month (C) UNMETEREDAJNMEASURED RATE $37.19 per month In the event the water supply (residential) is metered or otherwise unmeasurable by the District, the metered rate shall be charged. (Based on 4,500 gallons used per month)

T:\TARIFFs\WATER\LffiAN_cKPI_PSD_#12W_(CURRE~ DOC LOGAN COUNTY PUBLIC SERVlCE DISTRICT (Water) P.S.C.W.VA. Tariff No. 12 Original Sheet No. 3 i WATER SCHEDULE NO. 1 (Continued)

(C) DELAYED PAYMENT PENALTY The above rates are net. On all current usage billings not paid in full within twenty (20) days of the billing date, ten percent (10%) will be added to the net amount shown. This delayed payment penalty is not interest and is only to be collected once for each bill where it is appropriate.

TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant.

A tap fee of $100.00 will be charged to customers applying for service before construction is completed adjacent to the customer's premises in connection with a certificate proceeding before the Commission. This pre-construction tap fee will be invalid after the completion of construction adjacent to the applicant's premises that is associated with a certificate proceeding.

A tap fee of $250.00 will be charged to customers applying for service outside of a certificate proceeding before the Commission for each new tap to the system. (C,D) RECONNECTION SERVICE CHARGE $20.00 There shall be a reconnection charge paid prior to restoration of water service which had been previously disconnected for any reason.

(C) RETURNED CHECKS FOR INSUFFICIENT FUNDS $15.00 If a check received is returned by the bank for any reason, the bank's charge to the Logan County PSD shall be the District's charge to the customer for such a bad check, but such charge to the customer shall not exceed $15.00. LEAK ADJUSTMENT $0.97 per 1,000 gallons Rate per 1,000 gallons of water is to be used when a bill reflects unusual water consumption which can be attributed to eligible leakage on customer's side of the meter. This rate shall be applied to all such unusual consumption above the customer's historical average usage.

T \TARIFFs\WATER\LOGAN~CNTY-PSD_#12W-(CURRENT) DOC j>GAN COUNTY PUBLIC SERVICE DISTRICT (Water) P.S.C. W.VA. Tariff No. 9 Original Sheet No. 4

1 WATER SCHEDULE NO. !

APPLICABILITY Water rates applicable in all areas served by Logan County Public Service District.

AVAILABILITY Available for private fire protection service.

RATES Where connections, hydrants, sprinklers, etc., on property are maintained by customer:

Per Annum

2 Inch service line with hydrants, sprinklers, andor connections $ 60.79 24 3 Inch service line with hydrants, sprinklers, andor connections $ 137.41 4 Inch service line with hydrants, sprinklers, andor connections $ 240.69 6 Inch service line with hydrants, sprinklers, andor connections $ 609.89 8 Inch service line with hydrants, sprinklers, andor connections $1,000.13 10 Inch service line with hydrants, sprinklers, andor connections $1,773.98 12 Inch service line with hydrants, sprinklers, andor connections $2,706.32

Indicates increase APPENDIX F

PROPOSED TARIFF LOGAN COUNTY PUBLIC SERVICE DISTRICT-WATER PROPOSED TARIFF

WATER SCHEDULE 1

APPLICABILITY Water rates applicable in all areas served by Logan County Public Service District.

AVAILABILITY Available for residential, commercial, governmental, industrial and resale service.

MINIMUM CHARGE

UN-METERED RATE $37,19 per month In the event the water supply (residential) is metered or other wise unmeasurable by the District, the unmetered rate shall be charged. (Based on 4,500 gallons used per month)

WATER SCHEDULE 1 (Continued)

TAP FEE The following charges are to be made whenever the utility installs a new tap to serve an applicant.

A tap fee of $250.00 will be charged to customers applying for service outside of a certificate proceeding before the Commission for each new tap to the system.

RECONNECTION SERVICE CHARGE $20.00 There shall be a reconnection charge paid prior to restoration of water service which had been previously discontinued for any reason.

WATER SCHEDULE 2

APPLICABILITY Water rates applicable in all areas served by Logan County Public Service District.

PER ANNUM

2 Inch service line with hydrants, sprinklers, andor connections $ 60.79 3 Inch service line with hydrants, sprinklers, andor connections $ 137.41 4 Inch service line with hydrants, sprinklers, andor connections $ 240.69 6 Inch service line with hydrants, sprinklers, andor connections $ 609.89 8 Inch service line with hydrants, sprinklers, andor connections $ 1,000.13 10 Inch service line with hydrants, sprinklers, andor connections $ 1,773.98 12 Inch service line with hydrants, sprinklers, andor connections $2,706.32

PROJECT SCHEDULE LOGAN COUNTY PUBLIC SERVICE DISTRICT

HOLDEN WATER SYSTEM ACQUISITION PROJECT

PROJECT SCHEDULE

Miles tone Completion Date

Approval Agreement of Sale May, 2006 Submit to PSC May, 2006 Receipt of Funding June, 2006 Design of Emergency Project July, 2006 Emergency Project Permits August, 2006 Replacement Project AE Procurement August, 2006 PSC Approval September, 2006 Acquisition Closing September, 2006 Emergency Project Construction December, 2006 Replacement Project Design June, 2007 Replacement Project Funding July, 2007 Replacement Project PSC Submittal August, 2007 Replacement Project Permits. August, 2007 Replacement Project Property Acquisition September, 2007 i Replacement Project PSC Approval October, 2007 Replacement Project Bid Advertisement October, 2007 Replacement Project Bid Opening December, 2007 Replacement Project Closing March, 2008 Replacement Project Construction March, 2009 Replacement Project Closeout July, 2009