PSC Opens Investigation into McDowell PSD Failure to File Annual Report

The West Virginia Public Service Commission opened an administrative docket labeled WV: 26-0186-PSD-SC on Feb. 24–25, 2026 to investigate whether the McDowell County Public Service District failed to file a required annual report. The filing was listed only as an “Investigation of Failure to File Annual Report”; the docket entry shows the case was opened but provides no additional procedural details in the initial listing.

The new PSD docket comes as the Commission continues a separate but directly related proceeding into the City of Gary Municipal Water Works, Case No. 25-0611-W-DU, where PSC staff have documented serious system problems. PSC and state agencies reported that Gary’s system serves 416 customers and has been under a boil water order “for some time now,” with Bureau of Public Health findings of high levels of iron, manganese, alkaline metals and other contamination sources and a recorded 76 percent unaccounted-for water loss.

Agency and investigative findings in the Gary matter also cite infrastructure and operational deficiencies. A Consumer Finance Bureau summary referenced by the PSC lists lead in water, corroded pipes, structural issues, exposed wire, lack of proper monitoring of a number of potential pollutants, and failure to implement necessary programs such as backflow prevention. The press release preserves the bureau’s phrasing: “Failure to consult with the state after significant fecal coliform found in groundwater source and lead contamination.”

The Commission ordered the town and McDowell PSD to enter into an operation and maintenance agreement; an O&M agreement was filed with the PSC on July 7, 2025, and PSC legal staff filed a petition July 9, 2025 asking the Commission to open a proceeding. The July filings also included an order that McDowell PSD file a response within 30 days and that parties recommend dates and locations for public comment and evidentiary hearings.

McDowell PSD executive director Mavis Brewster told reporters the district has been active in addressing Gary’s needs and emphasized the PSD’s service growth: “We’ve worked really hard to bring good quality water to the residents.” Brewster also said, “We’ve been working with the city of Gary or trying to work with the city of Gary for some time,” and that the PSD “was also responding to the West Virginia Public Service Commission’s order by offering county water to the town.” Brewster noted the district originally started with 522 customers and now serves approximately 3,500.

Gary Mayor Robert Little described local recovery work after flooding and the water plant status: “We got the water plant running,” and added, “It’s going to take time to get every straightened and cleaned out and get back to normal I hope.” MetroNews reported that Gary and other areas of McDowell County “were hit hard in the Feb. 15 flood,” a line included in the public record fragments.

The newly opened WV: 26-0186-PSD-SC adds a compliance layer to the Commission’s oversight as it weighs whether McDowell PSD should assume control of Gary’s systems under the previously filed O&M. The PSC press release lists Andy Gallagher as the contact for case information at 304-340-0820 or agallagher@psc.state.wv.us, and the Gary matter is docketed as Case No. 25-0611-W-DU on the PSC case information listings.