Preston County Public Service District No. 1 Faces Rate Hike Hearing

Public hearing ordered by state regulator amid customer protests over water quality and financial concerns

Published on Mar. 2, 2026

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The Public Service Commission of West Virginia has ordered a public hearing on a rate increase request filed by Preston County Public Service District No. 1 (PSD1). The hearing is scheduled for March 9 in Kingwood, West Virginia, following numerous letters of protest from PSD1 customers regarding issues like financial mismanagement, water quality problems, and alleged embezzlement within the utility. The proposed rate hike would increase the average residential customer's monthly bill by 78 cents, or 1.37%.

Why it matters

The public hearing will allow customers to voice their concerns directly to the state regulator, which could impact whether the requested rate increase is approved. The allegations of financial issues and water quality problems at PSD1 also raise broader questions about the utility's management and operations that regulators will need to examine.

The details

PSD1 filed for the unspecified rate increase in August 2025. Since October, the utility has received 55 letters of protest from customers alleging financial mismanagement, poor water quality, and embezzlement - though no charges have been filed regarding the embezzlement claims. In December, PSC staff recommended a 1.37% increase for residential customers, 1.34% for commercial customers, and 1.33% for industrial customers. The proposed hike would generate an additional $19,859 in annual revenue for PSD1, which reported $1.3 million in total water operating revenues in 2024.

  • PSD1 filed the rate increase request in August 2025.
  • Protest letters from customers started arriving on October 10, 2025.
  • PSC staff filed a rate increase recommendation on December 10, 2025.
  • The public hearing is scheduled for 6 p.m. on March 9, 2026.
  • PSD1 serves about 1,540 customers in the Arthurdale area.

The players

Preston County Public Service District No. 1 (PSD1)

A public water utility that serves approximately 1,540 customers in the Arthurdale area of West Virginia.

Public Service Commission of West Virginia

The state regulatory agency that oversees public utilities and has ordered the public hearing on PSD1's rate increase request.

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What’s next

The judge in the case will decide on March 9 whether to approve the proposed rate increase for PSD1 after hearing from the utility and its customers.

The takeaway

This case highlights the importance of public oversight and transparency for local utilities, as customers' concerns over PSD1's financial management and water quality have prompted a regulatory review that could impact the approved rates. The outcome will set precedent for how state regulators balance customer interests with a utility's need to maintain infrastructure and operations.