Sanitary Board sale still faces hurdles
bluefield — The pending sale of Bluefield's sanitary board system to West Virginia American Water Company still faces two remaining hurdles.
Although the Bluefield Board of Directors approved the sale of the Bluefield Sanitary Board system to West Virginia American Water Company earlier this month, the transaction still requires approval from both the Bluefield, Va., Town Council and the West Virginia Public Service Commission.
The Virginia-side approval is necessary because the sanitary system also serves customers in Bluefield, Va. If the sale is approved by the Bluefield, Va., Town Council, it must then be approved by the West Virginia Public Service Commission.
The Bluefield, Va., Town Council has set a public hearing for Tuesday, April 22, at 7 p.m., at the town hall offices at 112 Huffard Drive to receive public input on the sale of the sanitary system to West Virginia American Water Company.
If the sale of the sanitary system also is approved by the Bluefield, Va., Town Council, then the purchaser — West Virginia American Water Company — would need to seek approval for the transaction from the West Virginia Public Service Commission, according to Bluefield City Attorney David Kersey.
'As you know, the Bluefield Sanitary Board sewer system also serves Bluefield, Va., town residents and some county residents as well,' Kersey said. 'So the proposed agreement includes the water company purchasing those Virginia assets. The town has not yet agreed to sell. And as I understand it they are having a meeting on April 22.'
According to a legal advertisement in the Daily Telegraph announcing that public hearing, the town of Bluefield, Va., believes the sale will provide benefits to the community, including enhanced service quality, improved infrastructure and long-term sustainability of the wastewater system.
If the Bluefield, Va., Town Council does agree to the sale, Kersey said the issue will then go to the Public Service Commission of West Virginia for approval.
'It's my understanding that the application for approval would be filed by the purchaser,' Kersey said. 'The water company would ask for permission and would ask for approval for the purchase.'
Since public hearings have already been held by the Bluefield City Board, along with the public hearing planned for next Tuesday in Bluefield, Va., Kersey said he didn't think the Public Service Commission would require additional public hearings on the matter.
'The city did have public hearings and comments and all,' Kersey said.
Andrew Gallagher, director of communications for the Public Service Commission of West Virginia, said the PSC has not yet received a petition on the matter from the city or the water company.
'The process, however, would be we get a petition and then act on it,' Gallagher said in an email response to questions by the Daily Telegraph.
The motion to approve the sale of the city's wastewater collection treatment system was approved by the city board on April 8. A second motion was also approved allowing for the shareholder approval for the Sanitary Board of Bluefield Inc., which is the entity that previously owned the Westside Treatment Plant.
As part of the agreement between the city and West Virginia American Water Company, the company would retain all existing employees of the Bluefield Sanitary Board system and would not raise rates prior to 2029, according to earlier reports from Bluefield City Manager Cecil Marson. The company would instead follow an existing rate schedule already approved by the Bluefield Sanitary Board.
Under the agreement, West Virginia American Water Company will purchase the Bluefield Sanitary Board wastewater system for $34.1 million and pay off around $14 million in debt. The anticipated proceeds would amount to $17 million for Bluefield and $3 million for Bluefield, Va.
West Virginia American Water would also offer employment to all sanitary board employees under the agreement.
For five years, West Virginia American Water would also use rates approved already by the sanitary board. West Virginia American Water Company rates would begin in 2029.
Contact Charles Owens at
cowens@bdtonline.com
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