Residents of Gary, a small city in McDowell County, have long raised alarms about severe water and sewer problems, with discolored water, sewage overflows, and repeated system failures affecting daily life. At a 2023 Public Service Commission hearing, residents described years of basement flooding, sewage flowing into nearby rivers, and tap water that often appeared red or brown, highlighting deep-rooted infrastructure neglect and environmental contamination.
State regulators later determined that Gary’s sewer system was a distressed utility under state law, citing numerous line breaks that allowed sewage to enter the Tug Fork of the Big Sandy River. In 2024, the PSC ordered the city to negotiate an operations and maintenance agreement with the McDowell Public Service District, identified as the most capable nearby utility. However, progress stalled as negotiations broke down over billing enforcement, debt concerns, and the city’s refusal to include its water system in any takeover arrangement.
The McDowell Public Service District has argued that assuming responsibility for Gary’s sewer system alone would expose it to serious financial risk. District officials pointed to millions of dollars in long-term debt and warned that without full control and reliable revenue collection, the district could be forced to absorb repair costs without assurance of repayment. City leaders, meanwhile, fear that relinquishing both water and sewer operations could jeopardize Gary’s municipal charter and essential services such as law enforcement.
As negotiations dragged on, concerns about Gary’s drinking water intensified. Regulators documented years of contaminated water marked by discoloration, greasy residue, and damage to clothing and household fixtures. Testing revealed elevated levels of iron, manganese, and alkaline metals, along with more serious issues such as lead, corroded pipes, exposed wiring, inadequate monitoring, and instances of fecal coliform contamination, which carries enforceable health standards and signals potential disease risks.
The PSC has since begun considering whether Gary’s water system should also be formally classified as distressed, naming potential acquiring utilities while acknowledging that none currently have sufficient funding or staffing to take on the system. Although Gary has claimed it has a feasible, near-term plan to fully replace its water infrastructure, regulators concluded the project is not fully funded and remains at least a year away, leaving residents stuck with unsafe and unreliable service.
Gary’s situation reflects broader structural challenges across West Virginia, where a high concentration of small water systems struggle with aging infrastructure, limited revenues, and compliance failures. Nearly a quarter of the state’s population is served by very small community water systems, and West Virginia has recorded the nation’s highest rate of health-based Safe Drinking Water Act violations, underscoring systemic vulnerabilities in water service delivery.
In response, the PSC has increasingly promoted consolidation, often relying on West Virginia American Water to acquire failing public systems. While the company has absorbed numerous distressed utilities and invested heavily in infrastructure upgrades, those investments have been accompanied by repeated rate increases. Residential water bills have more than doubled over the past two decades, even as boil water advisories and service disruptions persist in many areas.
Consumer advocates and economists have urged regulators to rethink current funding and rate mechanisms, warning that accelerated capital spending has not consistently translated into better outcomes for ratepayers. As debates continue over surcharges, rate hikes, and alternative regulatory models, critics argue that without a new balance between affordability, investment, and accountability, West Virginia’s water crisis shows no clear end in sight.
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