MSR 2002-2 - Public Service Commission of West Virginia

Public Service Commission — Management Summary Report
has provided a construction/equipment escrow account to ensure rate stability and the longterm
viability of the landfill. One of the challenges associated with the processing of this
filing was that if the rate at the Tucker landfill is too high, it will become more cost effective
for the largest part of its customers to deliver solid waste to a landfill located in Frostburg,
Maryland. Staff believes that its recommended rates will provide for the efficient operation
of the Tucker landfill while allowing it to be cost effective in relation to alternative disposal
options.
In 2007, Staff will process rate applications that will impact customers throughout Central
West Virginia. Meadowfill Landfill, Inc. and S & S Grading, Inc., aka S & S Landfill, Inc., both
located in Harrison County, have made filings to increase tipping fees. Also, Northern
Panhandle solid waste customers will be impacted by filings to increase tipping fees at Wetzel
County Landfill and Brooke County Sanitary Landfill.
On November 15, 2001, the Commission and the West Virginia Department of
Environmental Protection entered into a Memorandum of Understanding (MOU) with regard
to the implementation of financial assurance requirements of 33CSR1. The MOU provides
that the staff of the Commission will perform financial analysis to determine levels of funding
required for regulated solid waste landfills to close cells and to provide for 30 years of postclosure
care of landfill sites in accordance with Federal EPA standards. The Commission will
establish and supervise escrow accounts funded by landfills which will assure that funds are
available to meet future environmental requirements as administered by DEP. Implementation
of this interdepartmental undertaking began in mid-2002 and was halted in 2004, but has been
reactivated and will continue into 2007 with the goal of establishing adequate funding for all
regulated landfills. Prior to 2006, all closure and post closure escrow fund accounts were
established through a three-party agreement between the solid waste facility, the Public Service
Commission and the bank performing the function of escrow agent. In 2006 a new escrow
agreement format was established which added the Division of Environmental Protection as a
party and designated the State Treasurer as the escrow agent.
Challenges to Regulation:
The Commission has opened a General Investigation of Solid Waste Motor Carriers (Case
No. 06-0722-MC-GI) in the wake of the April 11, 2006, federal court decision James Allen
Harper , et al. v. Public Service Commission et al., Case No. 2:03-cv-00516, which concluded
that W. Va. Code §24A-2-5 violates Mr. Harper’s rights under the commerce clause of the
Constitution and that the PSC could not require solid waste collectors who cross state lines to
obtain a certificate of convenience and necessity before operating in West Virginia. For a
discussion of the nature and status of various challenges to the Commission’s jurisdiction and
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