Application for Transfer of Public Utility Franchise and Approval of Rates of Water Resource Management, Inc. to Carolina Water Service, Inc. of North Carolina

W-1073 Sub 7
W-354 Sub 396

Expert Witness Hearing December 8, 2022

On April 22, 2022, Carolina Water Service, Inc. of North Carolina (CWSNC), and Water Resource Management, Inc. (Water Resource) filed an application to transfer of public utility franchise and for approval of rates seeking authority to transfer the water and wastewater utility systems and public utility franchise serving all of Water Resource’s service areas in Watauga County, North Carolina, from Water Resource to CWSNC and for approval of rates.

Water Resource currently serves 613 monthly flat rate water utility customers and 149 monthly flat rate wastewater utility customers in its service areas in Watauga County, North Carolina. The Water Resource water service areas include Echota Subdivision, Echota on the Ridge Subdivision, Echota East Ridge Subdivision and Phase 4 of Echota Subdivision (collectively, Echota). The Water Resource wastewater service areas include the Top of Seven Condominiums, the City Hall for Seven Devils, the Seven Devils Lake Resort Club, one residential customer, the Lakes Community, Hawks Peak Condominiums, and Hawks Peak South Condominiums (collectively, Seven Devils).

The present water utility rates for the Echota service area were approved in Docket No. W-1073, Sub 4, on December 16, 2015, and Docket No. W-1073, Sub 6, on March 26, 2021. The present wastewater utility rates for the Seven Devils service area were approved in Docket Nos. W-1073, Sub 5, and M-100, Sub 138, and have been in effect since February 13, 2015. In its Application, upon acquisition of the system, CWSNC proposes to charge the CWSNC Uniform Rates for flat rate residential service for both water and wastewater utility service approved by the Commission in Docket No. W-354, Sub 384 on April 8, 2022. The present and proposed rates are as follows:

Monthly Flat Rate Service: Present Proposed
Water (Echota) $ 20.00 $ 68.71
Wastewater (Seven Devils) $ 28.20 $ 85.121

Presently the Echota service area customers are not metered. Upon acquisition, CWSNC plans to install water meters and provide metered service to the 613 Echota water utility system customers. Once meters are installed, CWSNC intends to charge the metered water customers the CWSNC Uniform Rates for monthly metered water service (residential and commercial) approved by the Commission in Docket No. W-354, Sub 384 on April 8, 2022. Assuming the size of each installed meter will be less than one inch and the average monthly usage is 3,837 gallons, the proposed monthly metered water bill will be $69.46 including a base facility charge of $24.53 and a usage charge of $11.71 per 1,000 gallons of treated water.

The Commission has scheduled an expert witness hearing on Thursday, December 8, 2022 at 10:00 am, where the utilities, the Public Staff, and other parties will provide expert witness testimony and cross examine each other’s witnesses. This hearing will be held in Commission Hearing Room 2115, Dobbs Building, 430 N Salisbury, Raleigh. The public can observe the expert witness hearing via the YouTube link on this website.

If you have questions about this matter, you can email the Public Staff here.

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