p.o. box 812 (304) 340-0300 (304) 340-0325

201 Brooks Street, P.O. Box 812 Charleston, West Virginia 25323

Phone: (304) 340-0300 Fax: (304) 340-0325

August 20,2020

Electronic Service Only

James V. Kelsh, Esq. Counsel, Tygarts Valley Transfer, Inc. BowlesRice LLP PO Box 1386 Charleston, WV 25325-1386

Robert R. Rodecker, Esq. Counsel, City of Elkins, Intervenor Kay Casto & Chaney PLLC PO Box 203 1 Charleston, WV 25327

RE: Case No. 20-0323-SWF-42A Tygarts Valley Transfer, Inc.

Gentlemen:

The Staff Memorandum issued today was served via email on the above-listed parties. Any responses must be submitted to the Executive Secretary’s Office in writing within 10 days of this date, unless directed otherwise. You will not receive a copy of the Staff Memorandum by regular mail.

Your failure to respond in writing to the utility’s answer, Staffs recommendations, or other documents may result in a decision in your case based on your original filing and the other documents in the case file, without further hearing or notice.

PLEASE NOTE: The Public Service Commission has adjusted its filing procedures during COVID-19 Pandemic: All public utilities and parties to Commission cases are to follow the directives in General Order 262.3, issued April 7,2020. Filings of 30 pages or less should be filed in formal cases via email sent to caseinfo@,psc.state.wv.us. All filings over 30 pages should be sent by U.S, Postal Service or other commercial courier services, whenever possible. Individuals who are unable to file via email may file via fax or file paper copies. The Commission will continue to receive hand-delivered filings prior to 3:30 p.m. if at all possible.

Sincerely,

CGItg Enc. Memo

f

Executive Secretary

FINAL JOINT STAFF MEMORANDUM

TO: CONNIE GRALEY Executive Secretary

FROM: LINDA S. BOUVETTE Staff Attorney

DATE: August 20,2020

RE: CASE NO. 20-0323-SWF-42A TYGARTS VALLEY TRANSFER, INC.

STAFF RECOMMENDATIONS

Staff recommends that an order be entered approving publication of the rate increase in Randolph County only and requiring TVT to file Tariff Form 6. Staff further recommends that an order be entered approving a landfill rate of $53.30 per ton and a base rate of $33.58 per ton, for a total rate of $86.88 per ton and the Staff Recommended Tariff identified as Statement D, Schedule 3 in the Rule 42 Exhibit. Staff finally recoinmends that the order require TVT to submit documentation as a closed case entry that the truck and software have been purchased and the pay increase implemented.

PROCEDURAL HISTORY

On April 2, 2020, Tygart Valley Transfer, Inc. (TVT) filed a verified petition to raise its rates and charges froin $66.40 per ton to $73.05 per ton exclusive of any legislatively authorized or mandated assessment fees. This increase would be a 10% increase over current base rates. With the assessment fees, TVT’s new rate would be $8 1.80 per ton.

In addition, to the proposed rate increase, TVT filed a motion to limit the public notice requirements to Randolph County. TVT proposes to send a press release containing the information from its M.C. Tariff Form 8-A to all other counties in Waste Shed B of the State’s Solid Waste Management Plan. That would include Barbour, Braxton, Clay, Doddridge, Gilmer, Harrison, Lewis, Marion, Monongalia, Preston, Taylor, Tucker and Upshur Counties.

In support of its petition, TVT notes that its last base rate increase was in 20 18 and it operated in calendar year 2019 at a loss. TVT’s Tariff Form 2 notes that the increase is needed to operate profitably and to purchase new equipment. TVT stated it has 156 customers that will be impacted by the rate increase which is expected to raise $148,872 annually.

Case No. 20-0323-SWF-42A August 20,2020 Page 2

Utilities Division Final Recommendation

On August 20, 2020, William S. Beller, Utilities Analyst with the Utilities Division, submitted his final recoinmendations and a Rule 42 Exhibit. Mr. Beller used the test year January 1 through December 3 1, 20 19 for his calculations. Mr. Beller noted that during the processing of TVT’s rate increase request, Tucker County Landfill received a rate increase. Since TVT would be paying the higher disposal cost, that increase was incorporated into the application, resulting in a landfill disposal rate of $53.30 per ton. Staff recommended that TVT’s base rate be increased to $33.58 per ton, for a total rate of $86.88 per ton which will generate $135,414.00 in revenues, a 7.33% increase over going level and an overall return on investment of 7.77%.

The increase includes the purchase of a tractor truck, software upgrades for scales and a 5% increase in wages outside the test year. Mr. Beller did not allow for the fuel adjustment requested by TVT since diesel prices were much lower than what it was seeking. Mr. Beller recommended that TVT be given ninety (90) days following entry of an order approving the rates to submit proof as a closed case entry that the truck and software have been purchased and that the 5% pay increase has been implemented. If no proof is submitted, then Staff will petition to reopen the case and reduce rates to remove the cost of these items.

Legal Division Firtal Recommendation

Legal Staff reviewed the pleadings filed to date, including Technical Staffs final memorandum and Rule 42 Exhibit. Legal Staff notes that TVT utilized M.C. Tariff Form 8-A rather than Tariff Form 8-A. Further, TVT restricted its publication to Randolph County only, and filed an affidavit of publication froin The Inter-Mountain on June 30, 2020, as evidence that notice of the rate change was published in Randolph County on April 6 and 13, 2020. Finally, TVT failed to file Tariff Form 6, documenting that the posting, publication and separate mailing notice requirements of Tariff Rule 8.1.1. have been met.

Legal Staff recommends that an order be entered approving publication of the rate increase in Randolph County only which is consistent with past practice. Legal Staff further recommends that an order be entered requiring TVT to file Tariff Form 6.

Legal Staff recommends that an order be entered approving a landfill rate of $53.30 per ton and a base rate of $33.58 per ton, for a total rate of $86.88 per ton, which

Case No. 20-0323-SWF-42A August 20,2020 Page 3

will generate an additional $135,414.00 in revenues and a 7.77% overall return on investment. Legal Staff further recommends that the Commission approve the Staff Recoininended Tariff identified as Statement D, Schedule 3 in the Rule 42 Exhibit. Legal Staff finally recommends that the order should require TVT to submit documentation as a closed case entry that the truck and software have been purchased and the pay increase implemented.

L S B/vm Attachment

WB WSB bv LJA S : \ ~ S ~ ~ ~ ~ ~ F ~ ~ ~ ~ \ L B ~ ~ V ~ ~ ~ ~ \ C A S E S ~ O ~ O ~ O - O ~ ~ ~ - S W F - ~ ~ A ~ I N A L JOINT STAFF MEMORANDUM.doc

STATEMENT

RGL, INC. dba MOUNTAIN STATE WASTE CASE NO. 19-0893-MC-42A

TABLE OF CONTENTS

PAGE NUMBER

Letter of Transmittal

Summary of Staff Recommendation

A Statement of Net Income Schedule 1 - Detail of Operating Revenues Schedule 2 - Detail of Operation and Maintenance Expenses Schedule 3 - Depreciation and Amortization Schedule 4 - Taxes Other Than Federal Income Taxes Schedule 6 - Other Income Schedule 7 - Other Income Deductions

B Average Rate Base Schedule 1- Utility Plant I Service Schedule 8 - Accumulated Depreciation

C Present, Proposed and Staff Recommended Tariff

D Customer's Bill Analysis Schedule 1 - Current and Going Level Tariff Schedule 2 - Pro Forma Tariff Schedule 3 - Staff Recommended Tariff

F Comparative Balance Sheet

G Detail of Adjustments

1-2

10 11 12

13

14-15 16-17 18-19 20-2 1

22

23-27

H Cash Flow Analysis 28

Phone: (304) 340-0300 Fax: (304) 340-0325

Commissioners Public Service Commission of West Virginia P.O. Box 812 Charleston, West Virginia 25323

RE: Case No. 20-0323-SWF-42A Tygarts Valley Transfer, Inc. Rule 42A application to increase rates and charges

Dear Commissioners:

An examination has been made of the books and records of Tygarts Valley Transfer, Inc. (Tygarts) for the twelve (12) months ending December 3 1, 2019. Tygarts operates a transfer station located in Beverly, West Virginia (Randolph County), and Municipal solid waste disposed at Tygarts is transported to the Tucker County Landfill (Tucker) located in Thomas, West Virginia.

Utility Staff would note some change that has taken place after Tygarts initial application was filed. Tygarts, in its initial application, sought to charge a total rate of $75.15 per ton for the disposal of municipal solid waste (MSW). The $75.15 per ton rate consisted of a landfill charge of $47.50 per ton and a base rate charge of $27.65 per ton. However, since that time, Tucker was approved an increase of $5.80 per ton charge (Case No. 19-1 163-SWF-PC-42A), which is a cost that Tygarts would have to incur and pass through to its customers. Subsequently, Tygarts was approved to increase the landfill portion of its total rate from $47.50 to $53.30 (Case No. 20-0443-SWF-T). This change is reflected in Staffs report.

In its application, Tygarts requested an increase of 24.05% in its base rate from its then current rate of $27.65 per ton to a proposed rate of $34.30 per ton. Tygarts proposed base rate increase results in a total disposal rate of $87.60 per ton. The requested increase in Tygarts base rate would generate an overall increase in revenue of 8.2 1 %. This increase is requested to cover increases in expenses related to day-to-day operations, wages (given during the test year and proposed), requested software and equipment purchase. Operation and Maintenance expenses at Going Level showed an overall increase of $138,524, the majority of which ($132,445) is directly related to the increase in the landfill expense associated with the rate increase approved for Tucker. Utility Staff has allowed for the purchase of a truck tractor, software update for the scales, and a 5% wage increase outside of the test year. Because Utility Staff has allowed for purchases outside of the text year, adjustments were made to the Depreciation Expense for assets that would become

Commissioners Case No. 20-0323-SWF-42A August 19,2020 Page 2

filly depreciated within the next twelve (12) months. Utility Staff did not allow for the Fuel Adjustment requested by Tygarts. In its application, Tygarts reflects a Going Level Fuel (Diesel) rate of $3.08 per gallon. However, current rates for Diesel in the State of West Virginia range from $2.30 per gallon to $2.45 per gallon, and during the test year Tygarts paid an average of $2.77 per gallon. Utility Staff believes that the fuel costs could be volatile going forward but current prices and test year prices indicate an upward adjustment is not warranted and has adjusted he1 to an average cost of $2.40 per gallon.

Other adjustments allowed by Utility Staff can be found on Statement G of this report. In addition to adjustments found on Statement G of this report, Utility Staff has also made Going Level Adjustments to Tygarts Statement B (Average Rate Base) to allow for a full year for assets that will be placed into service shortly after rates go into effect from this case. These additions are neither revenue producing nor expense reducing and results in an increase of $172,786 to utility plant in service and a $26,27 1 increase to accumulated depreciation.

At Pro Forma, Tygarts requested rate of $87.60 ($34.30 rate base and $53.30 landfill rate) would generate an increase in revenues of $151,855 (8.21% increase from Going Level), net income of $85,250, a cash flow surplus of $101,718, and an overall return on investment of 9.26%.

Utility Staff recommends a rate of $86.88 per ton ($33.58 base rate and $53.30 landfill rate). This rate would generate an increase in revenue of $135,414 (7.33% increase from Going Level), net income of $68,808, a cash flow surplus of $85,276, and an overall return on investment of 7.77%.

Utility Staff further recommends that Tygarts be given 90 days after rates go into effect to supply proof, as a closed entry in this case, of the purchase of both the tractor, the purchase of the software for its scales, and the 5% wage increase. If no proof is submitted within those 90 days, Utility Staff will petition to re-open this case and adjust the rates accordingly.

Respectfully Submitted

William S. Beller, IJA I1 Utilities Division Motor Carrier Section

WSB:ls Attachments

Tygarts Valley Transfer, Inc. SUMMARY OF STAFF RECOMMENDATION

Income Cash Flow Detail Statement Analysis 6) ($1 ($1

OPERATING REVENUE Commercial, Residential, Extra Haul, and Recycling

Other 1,983,938

1.983.938 1.983.938

OPERATING REVENUE DEDUCTIONS Operating Expenses

Wages Employees Benefits-Insurance Health Repairs and Maintenance Landfill Expense Fuel Other

Depreciation

Taxes Other Than Federal Income Tax Federal income Tax State Income Tax

Total Deductions Net Operating Income (Loss)

OTHER INCOME

OTHER DEDUCTIONS Interest Total Debt Service Other

NET INCOME -- or -- CASH SURPLUS

Operating Ration Before Income Taxes

45,600

235,486 1,190,121

9,653

#REF!

#REF! #REF! #REF! 85,83 1

14,146 14,146

#REF! #REF! #REF! #REF!

16,675 86,038

#REF! #REF!

#REF!

1

Tygarts Valley Transfer, Inc. SUMMARY OF STAFF RECOMMENDATION

Number of Customers: Residential - 316

Area Served -UT& and Wood Counties

Approximate Annual Increase in Residential Revenue:

Proposed - Amount Percent

Recommended - Amount $4,696 Percent 9.58%

Approximate Annual Increase in Commercial Revenue:

Proposed - Amount Percent

Recommended - Amount $19,455 Percent 9.58%

Comparison of Tariffs:

Applicants Staff Present Proposed Recommended Rates Rates Rates

Residential - Base Rate Rule 30E surcharge

Bulky Goods surcharge Total Per Month

Extra Bag Fee (Over 6)

Late Fee

Commercial

Increase %

6.25 6.25 13.15 4.75 4.75 1 .oo 1 .oo 12.00 12.00 13.15

$ 1.00 $ 1.00 $ 1.00

10% 10% 10%

Negotiable Negotiable Negotiable

9.58%

2

STATEMENT A

Per Books Adjustments Per Books Going Level Pro Forma Staff

(1) (2) (3) (4) ( 5 ) (6) (7) (8) $ $ $ $ $ $ $ $

1,716,079 1,7 16,079 132,445 1,848,524 151,855 2,000,380 1,983,938

Reference Per Books InC Adjusted Adjustments Going Level Adjustments Pro Forma Recommended

Statement A-1

Statement A-2 Statement A-3 Statement A 4 Statement A-5 Statement A-5

Net Operating Income (Loss)

Statement A-6 Statement A-7

Net Income (Loss)

Statement B

Rate of Return

1,659,954 1,659,954 138,524 1,798,478 35,433 66,809 66,809 19,022 85,83 1 13,478 13,478 668 14,146

1,798,478 1,798,478 85,83 1 85,83 1 14,146 14,146

1,708,865 66,809 158,2 14 1,898,455 1,898,455 1,898,455 1,740,241

7,214 (66,809) (24,162) (25,769) (49,93 1) 151,855 101,925 85,483

13,775 13,775 16,675 16,675 16,675

(6,561) (66,809) (37,937) (25,769) (66,606) 151,855 85,250 68,808

901,175

0.80%

901,175 199,057 1,100,232

-2.68% -4.54%

1,100,232 1,100,232

9.26% 7.77%

w

Tygarts Valley Transfer, Inc. Operating Revenues Year Ended December 3 1.20 19

Base Rate Revenue

Landfill Fees Increase due to Landfill Increase

Statement A-I

Per Books Per Books Going Level Pro Forma Staff Per Books Adjustments Adjusted Adjustments Going Level Adjustments Pro Forma Recommended

(1) (2) (3) (4) (5 ) (6) (7) (8) $ $ $ $ $ $ $ $

766,812 63 1,398 63 1,398 631,398 151,855 (16) 783,254

1,084,681 1 ,084,68 1 132,445 (3) 1,217,126 1,2 17,126 1,217,126

Total Operating Revenue 1,983,938 1,716,079 1,7 16,079 132,445 1,848,524 151,855 2,000,380

Tygarts Valley Transfer, Inc. Operation and Maintenance Expense Year Ended December 31.2019

Statement A-2

Per Books Adjustments Per Books Going Level Pro Forma staff

Pro Forma Recommended & Description Per Books Inc (Dec). Going Level Ad'ustments (7) (8)

Landfill Fees SWA Assessment Fees Accounting Expense Advertising and Promotions Bank Service Charges Computer and Internet Charges Employee Insurance (health and life) Insurance Dental Insurance Vision Employee Drug Screening and Uniforms Employee IRA Expense Employee Wages Freight Expense Leachate Removal Lic. And Permits Management Contract Fees (TVS) Office Supplies Postage Expense Repairs and Maintenance (Scales and Equip) Fuel Expense Transportation Repairs and Maintenance Tire Expense Towing Expense Legal Fees

$ 1,057,676

11,193 45,600

1,297 362 21 I

9,653 54 1 141 1 IO 306

140.920 159 213

5,139 228,600

2,033 76

1,525 90,464 39,369 23,773

593

$ 1,057,676

11,193 45,600

1,297 362 21 I

9,653 54 1 141 110 306

140,920 159 213

5,139 2 2 8.6 0 0

2,033 76

1,525 90,464 39,369 23,773

593

$ 132,445 (4)

271 (8) 71 (9)

8,730 (5)

6,886 (15)

(12,102) (IO)

2,222 (11)

(5) $

I , 190,121 11,193 45,600

1,297 362 21 I

9,653 812 212 1 IO 306

149,650 159 213

5,139 235,486

2,033 76

1,525 78,362 39,369 23,773

593 2,222

$ I , 190,12 1

11,193 45,600

1,297 362 21 1

9,653 812 212 1 I O 306

149,650 159 213

5,139 235,486

2,033 76

1,525 78,362 39,369 23,773

593 2,222

. . 9;

1,190,121 11,193 45,600

1,297 362 211

9,653 812 212 1 IO 306

149,650 159 213

5,139 235,486

2,033 76

1,525 78,362 39,369 23,773

593 2,222

1,798,478 1,798,478 1,659,954 1,659,954 138,524 1,798,478

Tygarts Valley Transfer, Inc. Depreciation, Depletion and Amortization Year Ended December 3 1,720 19

Statement A-3

Per Books Adj Per Books Going Level Adj ProForma Adj Staff

(1) (2) (3) (4) ( 5 ) (6) (7) (8) Recommended Description Per Books Adjustment No Adjusted Adjustment No Going Level Adjustment No Pro Forma

Depreciation

Totals

35,433 31,376 ( 1 ) 66,809 19,022 (12) 85,83 1 85,831 85,83 I

35,433 31,376 ( 1 ) 66,809 19,022 85,83 1 85,83 I 85,831

Tygarts Valley Transfer, Inc. Taxes Other Than Income Taxes Year Ended December 3 1,20 19

Statement A-4

Per Books Acct Adjustments Per Books Going Level Pro Forma Staff umber Per Books Inc (Dec). Adjusted Adjustments Going Level Adjustments Pro Forma Recommended

(1) (2) (3) (4) (5) (6) (7) (8) $ $ $ $ $ $ $ s

FICA FUTA Medicare SUTA Property Taxes

8,737 212

2,043 1,629

857

8,737 541 (6) 9,278 212 212

2,043 127 (7) 2,170 1,629 1,629

857 857

9,278 9,278 212 212

2,170 2,170 1,629 1,629

857 857

Total Taxes Other Than Income Taxes 13,478 13,478 668 14,146 14,146 14,146

Tygarts Valley Transfer, Inc. Other Income Year Ended December 31,2019

STATEMENT A SCHEDULE 6

Per Books Acct Adjustments Adj Per Books Going Level Adj ProForma Adj Staff

Number Per Books Inc (Dee). No. Adjusted Adjustments No. Going Level Adjustments No. Pro Forma Recommended (1) (2) $ $

Other Income

Total Other Income

Tygarts Valley Transfer, Inc. Other Income Deductions Year Ended December 31,2019

STATEMENT A SCHEDULE 7

Per Books Adjustments Adj Per Books Going Level Pro Forma Staff

Pro Forma Recommended Per Books Inc (Dec). No. Adjusted Adjustments Going Level Adjustments

Interest Expense 8,343 Loss - Sale of Asset 5.432

8,343 8,332 (13) 16,675 5,432 (5,432) (14)

16,675 16,675

13,775 13,775 2,900 16,675 16,675 16,675

Tygarts Valley Transfer, Inc. Average Rate Base Year Ended December 3 1,20 19

Utility Plant in Service Depreciation

Net Investment

Total Average Rate Base

Statement B

Average Balance Per Books Per Books Going-Level Pro Forma Source Per Books Adjustments Adjusted Adjustments Going-Level Adjustments Pro Forma

(1) (2) (3) (4) (5) (6) (7) (8) $ s $ $ $ $ $

. Schedule 1 529,599 529,599 172,786 702,385 702,385 Schedule 8 371,576 371,576 26,271 397,847 397,847

90 1,175 90 1,175 199,057 1,100,232 I , 100,232

901,175 901,175 199,057 1,100,232 1,100,232

Tygarts Valley Transfer, Inc. Plant in Service Year Ended December 3 1 , 20 19

Statement B Schedule 1

13 Month Balance Balance Average

Beginning Add Less Other End Monthly Description of Year Additions Retirements Changes of Year Balance

(1) (2) (3) (4) (5) (6 ) $ $ $ $ $ $

Buildings 45,143 45,143 45,143 Furniture and Equipment 3,064 3,064 3,064

Trailers 264,338 8,737 273,075 268,707 Transportation Equipment 125,957 62,380 188,337 157,147

Machinery and Equipment 54,4 17 2,243 56,660 55,539

Total 492,919 73,360 566,279 529,599

Going Level Addition

Software 202 I International Tractor

27,786 145,000

Going Level Adjustment 172,786

Accumulated Depreciation, Depletion and Amortization Year Ended December 3 1,20 19

Schedule 8

13 Month Average

Beginning Other End Monthly Description of Year Additions Retirements Changes of Year Balance

Balance Balance

(1) (2) (3 ) (4) (5) (6) $ $ $ $ $ $

Buildings Furniture and Equipment Machinery and Equipment Trailers Transportation Equipment

Total

Going Level Adjustment

Software 202 1 International Tractor

8,214 1,219 9,433 8,824 307 613 920 614

45,770 2,272 48,042 46,906 20 1,205 192,3 18 17,773 210,091

107,250 13,556 120,806 114,028

353,859 35,433 389,292 371,576

26,27 I cost Salvage Value Life (periods) Straight Line Amnt

27,786 5 5,557 145,000 7 20.714

Total 172,786 26,27 1

Tygarts Valley Transfer, Inc. Present, Proposed and Staff Recommended Rates Year Ended December 3 1.20 19

Base Rate Landfill Fee*

Statement C

Company Company Staff Present Proposed Proposed Recommended Recommended Difference % Difference Rates Rates YO Increase Rates 'KO Increase Proposed v Rec. Proposed v Rec.

(1) (2) (3) (4) ( 5 ) (2) - (4) (3) - ( 5 ) $ $ $ s

27.65 34.30 2 4 . 0 5 ~ ~ 33.58 21.45% (0.72) -2.10% 53.30 53.30 0.00% 53.30 0.00% 0.00%

Tygarts Valley Transfer, Inc. Bill Analysis Year Ended December 31,2019

Base Rate Total Determinants (all customers)

Land Fill Fee Rate at Filing Increase in Rate during the Pendency

Total Revenue

Correction Factor

Billing Determinants Per Books Adjusted Going Level

Statement D Sheet 1 o f 2

Proposed Revenue Increase (Tonnage) Rates Revenue Rates Revenue Rates Revenue Amount Percent

(1) (2) (3) (4) ( 5 ) (6) (7) (8) (9) $ $ $ $ $ $ $ %

22,387 27.65 619,001 27.65 61 9,001 34.30 767,874 148.874 24.05%

22,387 47.50 1,063,383 22.387

44,774

75.15 1,682,383

1.02002870

47.50 1,063,383 5.80 129,845

80.95 1,812,228

1.02002870

47.50 1,063,383 5.80 129,845

87.60 1,961,101

1.02002870

148,874 8.21%

Total as Corrected 1,7 16,079 1,848,524 2,000,380

Tygarts Valley Transfer, Inc. Bill Analysis Year Ended December 31,2019

Statement D Sheet 2 of 2

Staff Recommended Revenue Increase Rates * Revenue Amount Percent

(1 1) (12) (13) (14) $ $ $ %

Base Rate Total Determinants (all customers) 33.58 751,755 132,755 21.45%

Landfill Fess Current Rate ($47.50+$5.80)

Total Revenue

Correction Factor

Totals As Corrected

53.30 1,193,227 0.00%

86.88 1,944,983 132,755 7.33%

######### #########

1,983,938 135,414 7.33%

15

Statement D Schedule 1 Page 1 of 2

TYGARTS VALLEY TRANSFER, INC.

CURRENT AND GOING LEVEL TARIFF 20-0323-SWF-42A

RULES AND REGULATIONS

I. Rules and Regulations for the Government of Solid Waste Disposal Facilities, adopted by the Public Service Commission of West Virginia, and now in effect, and all amendments thereto and modifications thereof hereafter made by said Commission.

11. Transfer Station Rules and Regulations

1.

2.

3.

4.

5 .

6 .

7 .

8.

9.

10.

11.

12.

13.

No "semi's or tractor trailers" allowed.

All vehicles must be properly licensed and registered and have WV inspection sticker.

No speeding; all traffic laws are posted and must be observed at all times.

No buying or selling of anything is permitted.

No hunting.

No firearms or lethal weapons of any kind allowed on Company property or on your person.

Fighting, horseplay, gambling, stealing or scavenging of discarded or refuse material is prohibited.

All private vehicles must be off the transfer station property at the end of the workday.

No alcoholic beverages or non-prescription drugs allowed.

No loitering.

No tampering with equipment or utilities, water, electric, etc.

All accidents (vehicle or personal) must be reported immediately to transfer station office.

Be courteous and respectful at all times. No hazardous material or chemicals are allowed. Listed below are known Droducts that

16

Statement D Schedule I Page 2 of 2

will not be accepted in the transfer station:

1. Herbicides 7. PaintsRaint Thinners 2. Motor Oils 8. Fuels (Gasoline, Kerosene, Diesel) 3. Radioactive Materials 9. Batteries 4. Pesticides 10. Explosives 5. Solvents 11. Pool Chemicals 6. CleanersDetergents 12. Tires

111. Operating Hours:

A. The regular operating hours of the facility are from 7:OO a.m. to 4:OO p.m. daily Monday through Friday, closed on Saturday and Sunday. The facility will be closed on the following Holidays: New Year’s Day, Independence Day, Thanksgiving Day, the following Friday, and Christmas Day. If any of these holidays fall on a Saturday, Sunday or Monday, that the transfer station will observe that holiday on the preceding Friday.

B. The Transfer Station may extend its operating hours and/or open on a weekend should there be a scheduled cleanup within its service area.

C. The Transfer Station may extend its operating hours and/or open on a weekend should there be a disaster such as flooding, tornado or major fire, etc., within its service area.

RATES

BASE RATE .................................... $27.65 per ton LANDFILL CHARGES ................ $53.30 perton

TOTAL, CHARGE ...................... $80.95 per ton

17



PRO FORMA LEVEL TARIFF 20-0323-SWF-42A




1, No "semi's or tractor trailers" allowed.

2. All vehicles must be properly licensed and registered and have WV inspection sticker.

3. No speeding; all traffic laws are posted and must be observed at all times.

4. No buying or selling of anything is permitted.

5. No hunting.

6. No firearms or lethal weapons of any kind allowed on Company property or on your person.

7. Fighting, horseplay, gambling, stealing or scavenging of discarded or refuse material is prohibited.

8. All private vehicles must be off the transfer station property at the end of the workday.

9. No alcoholic beverages or non-prescription drugs allowed.

10. No loitering.

1 1. No tampering with equipment or utilities, water, electric, etc.

12. All accidents (vehicle or personal) must be reported immediately to transfer station office.

13. Be courteous and respectful at all times. 14. No hazardous material or chemicals are allowed. Listed below are known products that

18



1, Herbicides 7. PaintsPaint Thinners 2. Motor Oils 8. Fuels (Gasoline, Kerosene, Diesel) 3. Radioactive Materials 9. Batteries 4. Pesticides 10. Explosives 5. Solvents 11. Pool Chemicals 6. Cleaners/Detergents 12. Tires

111, Operating Hours:

A. The regular operating hours of the facility are from 7:OO a.m. to 4:OO p.m. daily Monday through Friday, closed on Saturday and Sunday. The facility will be closed on the following Holidays: New Year’s Day, Independence Day, Thanksgiving Day, the following Friday, and Christmas Day. If any of these holidays fall on a Saturday, Sunday or Monday, that the transfer station will observe that holiday on the preceding Friday.

B. The Transfer Station may extend its operating hours and/or open on a weekend should there be a scheduled cleanup within its service area.


(I) RATES

BASE RATE .................................... $34.30 per ton LANDFILL FEE.. ...................... .$53.30 per ton

TOTAL CHARGE ...................... $87.60 per ton

(I) Indicates Increase

19



STAFF RECOMMENDED 20-0323-SWF-42A




1.

2.

3.

4.

5 .

6 .

7.

8.

9.

10.

11.

12.

13. 14.

No "semi's or tractor trailers'' allowed.

All vehicles must be properly licensed and registered and have WV inspection sticker.

No speeding; all traffic laws are posted and must be observed at all times.

No buying or selling of anything is permitted.

No hunting.

No firearms or lethal weapons of any kind allowed on Company property or on your person.

Fighting, horseplay, gambling, stealing or scavenging of discarded or refuse material is prohibited.

All private vehicles must be off the transfer station property at the end of the workday.

No alcoholic beverages or non-prescription drugs allowed.

No loitering.

No tampering with equipment or utilities, water, electric, etc.

All accidents (vehicle or personal) must be reported immediately to transfer station office.

Be courteous and respectful at all times. No hazardous material or chemicals are allowed. Listed below are known products that

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1. Herbicides 7, PaintslPaint Thinners 2. Motor Oils 8. Fuels (Gasoline, Kerosene, Diesel) 3. Radioactive Materials 9. Batteries 4. Pesticides 10. Explosives 5. Solvents 11. Pool Chemicals 6. CleanersDetergents 12. Tires

111. Operating Hours:

A. The regular operating hours of the facility are from 7 :OO a.m. to 4:OO p.m. daily Monday through Friday, closed on Saturday and Sunday. The facility will be closed on the following Holidays: New Year’s Day, Independence Day, Thanksgiving Day, the following Friday, and Christmas Day. If any of these holidays fall on a Saturday, Sunday or Monday, that the transfer station will observe that holiday on the preceding Friday.

B. The Transfer Station may extend its operating hours andlor open on a weekend should there be a scheduled cleanup within its service area.


(I) RATES

BASE RATE .................................... $33.58 per ton LANDFILL CHARGES.. ............ ..$53.30 per ton

TOTAL CHARGE ...................... $86.88 per ton

(I) Indicates Increase

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Tygarts Valley Transfer, Inc. Balance Sheet Year Ended December 3 1.201 9

Current Assets: Cash Reserve and Checking Account Accounts Receivable Cash on Hand Total Current Assets

Lone Term Assets Buildings Furniture and Equipment Machinery and Equipment Trailers Transportation Equipment Accumulated Depreciation

Total Long-Term Assets

Other Assets Stock Subscriptions

Total Assets

Current Liabilities: Accounts Payable

Notes Payable 1142 Notes Payable 8463 Payroll Related Liabilities

Total Current Liabilities

Lonp-Term Liabilities: Notes Payable 1 142 Notes Payable 8463

Total Long-Term Liabilities

Total Liabilities

Stockholders Eauitv: Common Stock Operating Equity Retained Earnings Shareholder Distributions Net Income Total Equity

Total Liabilities and Equity

STATEMENT F

PER BOOKS ADJUSTED

12/31/2018 12/31/2019 $ $

15,821 13,424 120,129 120,76 1

475 475 136,425 134,660

45,143 31,927 3,064 3,064

54,417 56,660 264,338 253,859 125,957 169,773

(353,859) (343,727)

139,060 17 1,555

1,000 1,000

276,485 307,215

98,510 126,679 5,329

33,000 33,000 900 1,937

132,4 10 166,945

16,951 107,600 96,562

107.600 113,512

240,010 280,457

1,000 1,000 3,747 3,747

86,600 79,655 (47,926) (51,426)

276,485 307,215

22

Tygans Valley Transfer, Inc

Details of Adjustments YearEndedDecember31,2019

Adjustment Number

( I ) Depreciation Expense

Per Books Depreciation Expense Per Books Adjusted Depreciation Expense Per Books Adjustment

To conven Depreciation to Straight Line from Tax Accelerated Method

(2) Management Contran Fee

Per Books MCF Per Books Adjusted MCF Per Books Adjustment

Per Books Adjustment

35,433 66.809

31,376

Statement G Page 1 of 5

Increase @ecrease)

5

31,376

600

228,600 229,200

600

To adjust for mid-year change in MCF

23

Tygarts Valley Transfer, Inc. Details of Adjustments Year Ended December 3 1.20 19

Statement C Page 2 of 5

Adjustment Number

Going Level Adjustments Increase (Decrease)

(3) Going Level Landfill Revenue 132,445

1,084,68 1 1.217.126

Per Books Adjusted Revenue Going Level Revenue

Going Level Adjustment 132,445

Revenue Adjustment to cover increase in Landfill Expense of $5.8 per ton

(4) Going Level Landfill Fee 132.445

Per Books Adjusted Landfill Fees Going Level Landfill Fees

1,057,676 1,190,12 1

132,445 GoingLevel Adjustment

Adjustment for the Pass-through increase charged to TVT from Landfill

( 5 ) Wage Adjustment 8,730

Per Books Adjusted Wages Current Level Wages

140,920 145,227

(A) Unrecovered Salary Amount from Payroll Increase During Test Year 4,307

145,227 149.650

Current Level Wages Going Level Wages Reflecting 5% Increase

(B) Difference Between Going Level Wages and Current Level Wages 4,423

Total Going Level Adjustment Amount (A+B) 8,730

To Allow for increase during test year and proposed increase

54 I (6) FICA Adjustment

(A) Amount Subject to FICA Rate (Going Level Wage Increase) (B) FICA Rate

8,730 0.062

54 1 Going Level Adjustment Amount A*B

FICA Adjustment for Payroll Increase

127 (7) Medicare Adjustment

(A) Amount Subject to Medicare Rate (Going Level Wage Increase) (B) Medicare Rate

8,730 0.0145

Going Level Adjustment Amount A*B 127

Medicare Adjustment for Payroll Increase

24

Tygarts Valley Transfer, Inc. Details of Adjustments Year Ended December 31,2019

Adjustment Number

Going Level Adjustments

(8) Employee Insurance Expense-Dental

Per Books Adjusted Dental Expense (Eight Months) Annualized Going Level Dental

Going Level Adjustment Amount

To Annualize Test Year Dental Insurance

(9) Employee Insurance Expense-Vision

Per Books Adjusted Vision (Eight Months) Annualized Going Level Vision


To Annualize Test Year Vision Insumce

(1 0) Fuel Expense Adjustment

Per Books Adjusted Fuel Expense

Gallons of Highway Diesel Current Average WV Price Per Gallon (A) Going Level Highway Fuel

Gallons of Off Raod Diesel Current Average W Price Per Gallon (B) Going Level Off Road Diesel

Going Level Fuel Expense


To Adjust Test Year Gallons to Current Diesel Prices

(1 1) Legal Fee Adjustment


Increase (Decrease)

27 1

54 1 812

27 1

71

141 212

71

(12,102)

90,464

28,343 2.40

68,023

4,308 2.40

10,339

78,362

(1 2,102)

2,222

Rate Case Legal Fees 6,667

Rate Case Legal Fees Aortized over a 3 year Period 2,222

Per Books Adjusted Legal Fees Going Level Legal Fees


0 2.222

2,222

This Adjustment is made to Amortize an Expense Incurred by TVT, but is not incurred every year. Therefore, TVT will recover this expense over a period of three years and not 100% of the cost every year from the end of this rate case until the filing of it next rate case.

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Adjustment Number

(1 2) Depreciation Expense

Per Books Adjusted Depreciation Expense Going Level Depreciation Expense


Going Level Adjustments

Adjustment for Going Level Depreciation

(1 3) Interest Expense

Per Books Adjusted Interest Expense Going Level Interest Expense


Increase in in Interest Expense due to Financing Purchases of Software and Vehicle

(14) Per Books Adjusted Loss on Sale of Asset Going Level Loss on Sale of Asset


Removal of non-reoccurring expense

(1 5) Management Fee

Management Fee Per Books Adjusted Management Fee Going Level


66,809 85,831

19,022


Increase (Decrease)

19,022

8,332

8,343 16,675

8,332

228,600 235.486

6,886

(5,432)

6,886

To adjust for Going Level Increases

26


Revenue Category I

Adjustment Number

Pro Forma Going Level Difference $ $ $

(16) Pro Forma Revenue

Total Determinants (all customers) Landfill Fess Increase in Rate durine the Pendencv

Pro Forma Adjustments

783,254 631,398 151,855 1,084,681 1,084,681 0

132.445 132.445 0

Total I 2,000,380 I 1,848,524 I 151,855


Increase (Decrease)

15 1,855

Tygarts Valley Transfer, Inc. Cash Flow Analysis Year Ended December 31,2019

Available Cash Operating Revenues Other Income

Total Available Cash

Cash Required Operating Expenses Taxes Other Than Income Tax State Income Tax Federal Income Tax

Total Cash Required Before Debt Service

Cash Available for Debt Service (A)

Debt Service Requirements Interest Principal Retirement

Total Debt Service Requirement (B)

Remaining Surplus

Per Books Per Books Adjusted Going Level

$

1,716,079

1,716,079

1,659,954 13.478

1,673,432

42,647

13,775 32,897

46,672

(4,025)

1,716,079

1,716,079

1,659,954 13.478

1,673,432

42.641

13,773 32,897

46,672

(4,025)

1,848,524

1,848,524

1,798,478 14.146

1,8 12,624

35,900

16,675 69,363

86,038

(50,138)

STATEMENT H

Staff Pro Forma Recommended

$ $

2,000,380 1,983,938

2,000,380 1,983,938

1,798,478 1,798,478 14,146 14,146

1.8 12,624 1,812,624

187,756 171,314

16,675 16,675 69,363 69,363

86,038 86,038

101,718 85,276

2s

p.o. box 812 (304) 340-0300 (304) 340-0325

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