H. B. 2573
(By Delegate Louisos)
[Introduced February 21, 2005; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact §24-2-4 of the Code of West Virginia,
1931, as amended, relating to public utilities; providing that
a public utility may not utilize minimum billing of customers;
and providing that customer billing is based on actual usage.
Be it enacted by the Legislature of West Virginia:
That §24-2-4 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 2. POWERS AND DUTIES OF PUBLIC SERVICE COMMISSION.
§24-2-4. Procedure for changing rates.
No public utility subject to this chapter, except those
utilities subject to the provisions of section four-b of this
article, shall change, suspend or annul any rate, joint rate,
charge, rental or classification except after thirty days' notice
to the Commission and the public, which notice shall plainly state
the changes proposed to be made in the schedule then in force and the time when the changed rates or charges shall go into effect;
but the Commission may enter an order suspending the proposed rate
as hereinafter provided. The proposed changes shall be shown by
printing new schedules, or shall be plainly indicated upon the
schedules in force at the time, and kept open to public inspection:
Provided, That the Commission may, in its discretion, and for good
cause shown, allow changes upon less time than the notice herein
specified, or may modify the requirements of this section in
respect to publishing, posting and filing of tariffs, either by
particular instructions or by general order.
Whenever there shall be filed with the Commission any schedule
stating a change in the rates or charges, or joint rates or
charges, or stating a new individual or joint rate or charge or
joint classification or any new individual or joint regulation or
practice affecting any rate or charge, the Commission shall have
authority, either upon complaint or upon its own initiative without
complaint, to enter upon a hearing concerning the propriety of such
rate, charge, classification, regulation or practice; and, if the
Commission so orders, it may proceed without answer or other form
of pleading by the interested parties, but upon reasonable notice,
and, pending such hearing and the decision thereon, the Commission,
upon filing with such schedule and delivering to the public utility
affected thereby a statement in writing of its reasons for such
suspension, may suspend the operation of such schedule and defer the use of such rate, charge, classification, regulation or
practice, but not for a longer period than one hundred and twenty
days beyond the time when such rate, charge, classification,
regulation or practice would otherwise go into effect; and after
full hearing, whether completed before or after the rate, charge,
classification, regulation or practice goes into effect, the
Commission may make such order in reference to such rate, charge,
classification, regulation or practice as would be proper in a
proceeding initiated after the rate, charge, classification,
regulation or practice had become effective: Provided, That if any
such hearing and decision thereon cannot be concluded within the
period of suspension, as above stated, such rate, charge,
classification, regulation or practice shall go into effect at the
end of such period. In such case the Commission may require such
public utility to enter into a bond in an amount deemed by the
Commission to be reasonable and conditioned for the refund to the
persons or parties entitled thereto of the amount of the excess,
plus interest at the rate of not less than seven percent per annum,
as may be specified by the Commission, if such rate so put into
effect is subsequently determined to be higher than those finally
fixed for such utility. In specifying the applicable interest
rate, the Commission shall be guided by the interest rate which
such public utility would in all probability have to agree to pay
if such public utility at that time borrowed in the marketplace a sum of money equivalent to the amount of money the Commission
estimates the increase in rates will produce between the effective
date of such increase and the anticipated date the rates will be
finally fixed for such public utility, it being intended that a
public utility should be discouraged from imposing higher rates
than it should reasonably anticipate will be finally fixed as a
means in effect of borrowing money at a rate of interest less than
such public utility would have to agree to pay if it borrowed money
in the marketplace. No such accrued interest paid on any such
refund shall be deemed part of the cost of doing business in a
subsequent application for changing rates or any decision thereon.
At any hearing involving a rate sought to be increased or involving
the change of any fare, charge, classification, regulation or
practice, the burden of proof to show that the increased rate or
proposed increased rate, or the proposed change of fare, charge,
classification, regulation or practice is just and reasonable shall
be upon the public utility making application for such change.
When in any case pending before the Commission all evidence shall
have been taken, and the hearing completed, the Commission shall,
within three months, render a decision in such case.
Where more than twenty members of the public are affected by
a proposed change in rates, it shall be a sufficient notice to the
public within the meaning of this section if such notice is
published as a Class II legal advertisement in compliance with the provision of article three, chapter fifty-nine of this code, and
the publication area for such publication shall be the community
where the majority of the resident members of the public affected
by such change reside or, in case of nonresidents, have their
principal place of business within this state. The provisions of
this section shall expire on and be of no further force and effect
after the thirtieth day of June, one thousand nine hundred
eighty-one, except that as to any case pending on said date in
which the suspension period has expired and rates are in effect
under bond such case shall be proceeded with in accordance with
this section; as to any other case pending on said date, the
Commission shall treat the case as filed anew on the first day of
July, one thousand nine hundred eighty-one, except that it shall
not be necessary for any new process or notice to be served or
published.
Notwithstanding the provisions of this section, section four-b
or any other section of this article to the contrary, utilities may
not utilize minimum billing of customers. Any billing of customers
shall be based on actual usage for the period not to exceed one
month.
NOTE: The purpose of this bill is to prohibit utilities from
utilizing minimum billing of customers and to bill customers based
on actual usage only.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.