important info about ALPUC

Here's some backround information from Ann Nelson, President of ALPUC


Until 1990, ALPOA and ALPUC, though independently formed originally, were run as one entity. The West Virginia Public Service Commission took a dim view of this situation, as it meant that funds were co-mingled, whereas water and sewer service fees legally are permitted to be used solely for the provision of utility services.

The matter was resolved in late 1990, when ALPUC was set up with a separate, independent Board, separate accounting and financial arrangements, a separate staff, and separate property ownership. So now neither ALPOA nor ALPUC is controlled by the other in any way. ALPUC is a state- and federally- regulated, not-for-profit utility, subject to placement in receivership if not run properly. Receivership ultimately would mean transfer of ownership away from Alpine Lake. This nearly happened in 2001, before positive steps were taken to replace our sewerage treatment plant.

Since 1990, ALPUC has paid rent to ALPOA for the third floor lodge room that ALPUC has used as a business office. Recently, ALPOA and ALPUC have entered into binding contractual arrangements whereby ALPOA will contribute $50,000 per year to ALPUC to help defray the interest expense on the 40 year bonds financing our water and sewer projects. This contribution has the effect of reducing residential water and sewer rates by approximately $10 per customer per month. This also tends to spread utility costs more broadly than just to homeowners.

Only in an emergency is ALPUC permitted to lend the use of its equipment or personnel to ALPOA or anyone else. In any such emergency, work orders must be prepared detailing any labor &/or material costs incurred by ALPUC on ALPOA's behalf, and a bill must be rendered. The utility is not permitted to recover such costs from its water and sewer customers.

Someone recently asked why ALPOA and ALPUC can't share equipment, thereby supposedly saving money for Alpine Lake property owners. The limitations imposed by the Public Service Commission are part of the reason, but there also are practical considerations. Anyone paying attention will have noticed that ALPOA and ALPUC generally use all of their equipment pretty steadily and at the same time. For some years, having to wait for ALPOA's old blue dump truck to be available seriously delayed repairs of water main breaks, among other critical ALPUC work.

Not so long ago, neither ALPOA nor ALPUC possessed adequate equipment to properly maintain our roads or golf course or operate security, or to perform the work necessary to run a water and sewer company. This situation had to change in order for Alpine Lake to be a successful community. Those who want their investments here to hold value should understand that we have to take care of it.

 

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