With that transfer added in, the combined rate increases will generate nearly $8.4 million annually from water customers and about $106,000 from sewer customers.
While the commission approved the rate structure Thursday, it questioned the justification for the rate shift due to a lack of detail regarding the Fayetteville system's expenses.
The commission's order said the joint stipulation negotiated between the company and other parties "did not adequately support the amount of corporate operating expenses allocated to sewer customers."
To address that, the commission ordered that West Virginia American Water, during its next rate case, must study and present results detailing how its system expenses were allocated across its water and sewer customers.
West Virginia American Water president Jeff McIntyre said in a statement Thursday the company was satisfied with the commission's ruling.
"We appreciate the commission's thorough examination of and ruling on this joint stipulation, which all parties agreed is a fair and reasonable resolution," McIntyre said.
"The settlement was based on extensive negotiations and substantial compromises by all parties, and with the commission's modifications, we still believe this order is a fair and reasonable resolution with the best interest of our customers at its core," he said.
The order allows the new rates to take effect Oct. 11.
The water company said the average residential customer, using about 3,315 gallons a month, would see a monthly bill increase of about $2.77, from $39.11 to $41.88.
The state Consumer Advocate Division, which based its calculations on customers using 4,500 gallons each month, said the new rate plan would increase the average bill by about $3.57 from $50.50 to $54.07 each month.
Contact writer Jared Hunt at busin...@dailymail.com or 304-348-4836.