West Virginia American Water Customers Face Higher Bills After PSC Ruling

The West Virginia Public Service Commission approved a $20.5 million annualized revenue increase for West Virginia American Water, the state's largest water utility, with higher bills already in effect for customers across its service territory as of March 1.

The PSC issued an amended order on March 5, 2026, approving the new rates after West Virginia American filed its request in May 2025. The company had originally sought a 27.9% increase that would have generated $60.5 million in additional revenue. The commission approved a substantially smaller figure: $20.5 million, excluding $12.7 million in infrastructure surcharges already being collected. For a household using 3,000 gallons per month, the new rates add roughly $6 to the monthly water bill and $7 to the sewer bill.

West Virginia American Water said the approved revenue supports more than $239 million in system investments and improvements since the company's last rate adjustment in 2024. Scott Wyman, president of the company, framed ongoing capital spending as essential to maintaining safe, compliant service across the state's water and wastewater systems.

Not everyone accepted that framing. Kanawha County Commissioner Lance Wheeler and the PSC's own Consumer Advocate Division both challenged the increase during the rate case. The Consumer Advocate argued that the company failed to meet the parameters of a water-loss surcharge mechanism established in 2016, and pointed out that the previous rate hike had also been built around promises of infrastructure upgrades while the system continued losing an undetermined volume of water. Wheeler noted that West Virginia American's revenue grew from $8.5 million in 2014 to more than $40.8 million by 2024, and challenged how much deferred maintenance should land on the backs of ratepayers rather than the corporation.

The PSC decision applies to West Virginia American Water's statewide service territory and does not directly govern McDowell County's municipal systems or Public Service Districts. But the ruling carries weight here. The commission's willingness to approve revenue recovery tied to capital investment sets a regulatory benchmark that smaller utilities and PSDs may cite when pursuing their own rate adjustments or when state agencies evaluate consolidation and ownership-transfer proposals. McDowell officials navigating federal and state grant applications for infrastructure repairs should follow the cost-recovery arguments the PSC accepted in this case; the same regulatory reasoning can shape how future applications are evaluated.

The PSC simultaneously expanded a discount program for customers already enrolled in the Special Reduced Rate Residential Service tariff, who will receive an additional 20% discount on top of that existing reduced rate. Customers receiving SSI, TANF, or SNAP benefits if over age 60 may qualify. West Virginia American Water's H2O Help to Others Program remains available alongside the new discount tier for those who need help covering the higher bills.

Customers will find rate-change details on their next billing statement from West Virginia American Water.