Senate Bill No. 634
(By Senator Bowman)
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[Introduced February 22, 1999; referred to the Committee on the
Judiciary; and then to the Committee on Education.]
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A BILL to amend and reenact section twenty-five, article
thirteen-a, chapter sixteen of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, relating
to removing the requirement that public service districts
publish a legal advertisement prior to filing an application
for a certificate of public convenience and necessity.
Be it enacted by the Legislature of West Virginia:
That section twenty-five, article thirteen-a, chapter
sixteen of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
follows:
ARTICLE 13A. PUBLIC SERVICE DISTRICTS FOR WATER, SEWERAGE AND
GAS SERVICES.
§16-13A-25. Borrowing and bond issuance; procedure.
Notwithstanding any other provisions of this article to the
contrary, a public service district shall may not borrow money,
enter into contracts for the provision of engineering, design or
feasibility studies, issue or contract to issue revenue bonds or
exercise any of the powers conferred by the provisions of section
thirteen, twenty or twenty-four of this article, without the
prior consent and approval of the public service commission. The
public service commission may waive the provision of prior
consent and approval for entering into contracts for engineering,
design or feasibility studies pursuant to this section for good
cause shown which is evidenced by the public service district
filing a request for waiver of this section stated in a letter
directed to the commission with a brief description of the
project, evidence of compliance with chapter five-g of this code,
and further explanation of ability to evaluate their own
engineering contract, including, but not limited to: (1)
Experience with the same engineering firm in the past two years
requiring engineering services; or (2) completion of a
construction project within the past two years requiring
engineering services. The district shall also forward an executed copy of the engineering contract to the commission after
receiving approval of the waiver. Unless the properties to be
constructed or acquired represent ordinary extensions or repairs
of existing systems in the usual course of business, a public
service district must shall first obtain a certificate of public
convenience and necessity from the public service commission in
accordance with the provisions of chapter twenty-four of this
code, when a public service district is seeking to acquire or
construct public service property.
Thirty days prior to making formal application for the
certificate, the public service district shall prefile with the
public service commission its plans and supporting information
for the project. and shall publish a Class II legal
advertisement in a newspaper or newspapers of general circulation
in each city, incorporated town or municipal corporation if
available in the public service district, which legal
advertisement shall state:
(a) The amount of money to be borrowed, or the amount of
revenue bonds to be issued: Provided, That if the amount is an
estimate, the notice may be stated in terms of an amount "not to
exceed" a specific amount;
(b) The interest rate and terms of the loan or bonds:
Provided, That if the interest rate is an estimate, the notice
may be stated in terms of a rate "not to exceed" a specific rate;
(c) The public service properties to be acquired or
constructed, and the cost of the public service properties;
(d) The anticipated rates which will be charged by the
public service district: Provided, That if the rates are an
estimate, the notice may be stated in terms of rates "not to
exceed" a specific rate; and
(e) The date that the formal application for a certificate
of public convenience and necessity is to be filed with the
public service commission. The public service commission may
grant its consent and approval for the certificate, or any other
request for approval under this section, subject to such terms
and conditions as may be necessary for the protection of the
public interest, pursuant to the provisions of chapter
twenty-four of this code, or may withhold such consent and
approval for the protection of the public interest
In the event of disapproval, the reasons for the disapproval
shall be assigned in writing by the commission.
NOTE: The purpose of this bill is to remove a requirement
that public service districts publish a legal advertisement prior
to filing an application for a certificate of public convenience
and necessity with the Public Service Commission.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.