West Virginia Code § 24-2H-5

Determination of whether a utility qualifies as a "distressed utility",
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"failing utility", or a "capable proximate utility".
(a) In determining whether a utility is distressed or failing, the commission shall consider the
following factors:
(1) The financial, managerial, and technical ability of the utility;
(2) The level of expenditures necessary to make improvements to the water or wastewater
utility to assure compliance with applicable statutory and regulatory standards concerning
the adequacy, efficiency, safety, or reasonableness of utility servuice and the impact of those
expenditures on customer rates;
(3) The opinion and advice, if any, of the Department of Environmental Protection and the
Bureau for Public Health as to steps that may be necesasary to assure compliance with
applicable statutory or regulatory standards concerning the adequacy, efficiency, safety, or
reasonableness of utility service; l
(4) The status of the utility's bond payments and other financial obligations;
(5) The status and result of any corrective measures previously put into place under
§24-2H-7 of this code; and
(6) Any other relevant matter.
(b) In determining whetLher a utility is a capable proximate utility, the commission shall
consider the following factors:
(1) The financial, managerial, and technical ability of all proximate public utilities providing
the same type of service;
(2) WExpansion of the franchise or operating area of the acquiring utility to include the service
area of the distressed utility;
(3) The financial, managerial, operational, and rate demands that may result from the
current proceeding and the cumulative impact of other demands where the utility has been
identified as a capable proximate utility; and
(4) Eligibility of the capable proximate utility to receive state grant funding and federal
grant funding in a similar manner as the distressed utility; and
(5) Any other relevant matter.

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