Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
65.810, Chapter 74, 273, 278.010(15),
278.020(1), 278.023, 278.190, 278.300
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
278.040(3) authorizes the
commission to adopt reasonable administrative regulations to implement the
provisions of KRS Chapter 278.
KRS
278.020(1) authorizes the
commission to issue a certificate of public convenience and necessity for
utility construction.
KRS
278.300 authorizes the commission to approve
the issuance or assumption of an obligation, liability, or evidence of
indebtedness by a utility.
KRS
278.190 authorizes the commission to approve
proposed changes in rates.
KRS
278.023 requires that the commission review,
recommend modifications to, and issue orders necessary to implement an
agreement regarding a federally funded construction project, including those
portions of the agreement relating to financing, construction, and rates.
KRS
278.023(2) requires the
commission to prescribe by administrative regulation the specific documents
required to be filed for commission review of a construction project financed
in whole or in part under the terms of an agreement between a water utility and
the U.S. Department of Agriculture or the U.S. Department of Housing and Urban
Development and to be undertaken by a water association, a water district, or a
combined water, gas, or sewer district formed under KRS Chapter 74 or 273. This
administrative regulation establishes filing requirements and procedures a
water association, a water district, or a combined water, gas, or sewer
district formed under KRS Chapter 74 or 273 shall follow when seeking
commission approval of a construction project financed in whole or in part
under the terms of an agreement with the U.S. Department of Agriculture or the
U.S. Department of Housing and Urban Development.
Section 1. Definitions.
(1) "Commission" is defined by
KRS
278.010(15).
(2) "Construction project" means activity
involving the construction or installation of facilities, plant, or equipment
to provide, extend, or enhance the quality of water or sewer service within the
geographical area that a water utility has the responsibility to
serve.
(3) "Federal lending agency"
means the U.S. Department of Agriculture or the U.S. Department of Housing and
Urban Development.
(4) "Water
utility" means:
(a) A water association
formed as a non-profit corporation, association, or cooperative corporation
having as its purpose the furnishing of a public water supply or the collection
or treatment of sewage for the public;
(b) A water district formed as a special
district pursuant to
KRS
65.810 and KRS Chapter 74; or
(c) A combined water, gas, or sewer district
formed as a special district pursuant to
KRS
65.810 and KRS Chapter 74.
Section 2. Filing
Requirements. A water utility proposing a construction project financed in
whole or in part under the terms of an agreement between the water utility and
a federal lending agency shall file with the commission:
(1) All documents and information required by
807 KAR 5:001,
Sections 7, 8, and 14;
(2) A copy
of the documents from the federal lending agency stating approval of the
project and including all terms and conditions of the agreement, including all
amendments;
(3) A copy of the
letter of concurrence in contract award;
(4) A copy of the preliminary and final
engineering reports and bid tabulations;
(5) One (1) copy of each set of plans and
specifications on electronic storage medium in portable document
format;
(6) A certified statement
from an authorized water utility official confirming:
(a) That the proposed plans and
specifications for the construction project have been designed to meet the
minimum construction and operating requirements established in:
1. If the construction project involves
facilities to treat or distribute water,
807 KAR 5:066, Section 4(3)
and (4), Section 5(1), Sections 6 and 7, Section 8(1) through (3), Section 9(1)
and Section 10; or
2. If the
construction project involves facilities to collect or treat sewage,
807 KAR 5:071, Section 5
and Sections 7(1) through (3);
(b) That all other state approvals or permits
have been obtained;
(c) That the
proposed rates, if any, shall produce the total revenue requirements
recommended in the engineering reports; and
(d) The dates upon which construction will
begin and end;
(7) If
applicable, a statement that notice meeting the requirements of Section 3 of
this administrative regulation has been given, together with a copy of the
notice; and
(8) If applicable, a
motion requesting approval to deviate from a minimum construction standard or
operating condition required by subsection (6)(a) of this section, together
with supporting evidence to identify and explain the reasons that the minimum
requirements cannot be met.
Section
3. Notice. Upon filing for a change in rates as a result of a
construction project, a water utility shall provide notice as established in
this section.
(1) Public postings.
(a) A water utility shall post at its place
of business a copy of the notice no later than the date the application is
submitted to the commission.
(b) A
water utility that maintains a Web site shall, within five (5) business days of
the date the application is submitted to the commission, post on its Web sites:
1. A copy of the public notice; and
2. A hyperlink to the location on the
commission's Web site where the case documents are available.
(c) The information required in
paragraphs (a) and (b) of this subsection shall not be removed until the
commission issues a final decision on the application.
(2) Customer notice.
(a) If a water utility has twenty (20) or
fewer customers, it shall mail a written notice to each customer no later than
the date on which the application is submitted to the commission.
(b) If a water utility has more than twenty
(20) customers, it shall provide notice by:
1.
Including notice with customer bills mailed no later than the date the
application is submitted to the commission;
2. Mailing a written notice to each customer
no later than the date the application is submitted to the
commission;
3. Publishing notice in
a prominent manner in a newspaper of general circulation in the water utility's
service area no later than the date the application is submitted to the
commission; or
4. Publishing notice
in a trade publication or newsletter delivered to all customers no later than
the date the application is submitted to the commission.
(c) A water utility that provides service in
more than one (1) county and is not proposing to increase its rates for sewer
service may use a combination of the notice methods listed in paragraph (b) of
this subsection.
(3)
Proof of notice. A water utility shall file with the commission no later than
fifteen (15) days from the date the application was initially submitted to the
commission:
(a) If notice is mailed to its
customers, an affidavit from an authorized representative of the water utility
verifying the contents of the notice, that notice was mailed to all customers,
and the date of the mailing;
(b) If
notice is published in a newspaper of general circulation in a water utility's
service area, an affidavit from the publisher verifying the contents of the
notice, that the notice was published, and the dates of the notice's
publication; or
(c) If notice is
published in a trade publication or newsletter delivered to all customers, an
affidavit from an authorized representative of the water utility verifying the
contents of the notice, the mailing of the trade publication or newsletter,
that notice was included in the publication or newsletter, and the date of
mailing.
(4) Notice
content. Each notice issued in accordance with this section shall contain a
brief description of the construction project and shall also contain:
(a) The proposed effective date of the
proposed rate adjustment;
(b) The
present rates and proposed rates for each customer classification to which the
proposed rates will apply;
(c) The
amount of the change requested in both dollar amounts and percentage change for
each customer classification to which the proposed rates will apply;
(d) The amount of the average usage and the
effect upon the average bill for each customer classification to which the
proposed rates will apply;
(e) A
statement that a person may examine this application at the offices of (water
utility name) located at (water utility address);
(f) A statement that a person may examine
this application at the commission's offices located at 211 Sower Boulevard,
Frankfort, Kentucky, Monday through Friday, 8:00 a.m. to 4:30 p.m., or through
the commission's Web site at
http://psc.ky.gov;
(g) A statement that comments regarding the
application may be submitted to the Public Service Commission through its Web
site or by mail to Public Service Commission, Post Office Box 615, Frankfort,
Kentucky 40602; and
(h) A statement
that the proposed rates are required under the terms of an agreement between
(water utility name) and (federal lending agency name) and that
KRS
278.023 does not grant the Public Service
Commission any discretionary authority to modify or reject any portion of the
agreement between (federal lending agency) and (water utility name), or to
defer the issuance of all necessary orders to implement the terms of that
agreement.
Section
4. Additional Construction Activity. If surplus project funds
remain after the approved construction project has been completed, the water
utility may construct additional facilities without prior commission approval
if no change in existing rates will result. The water utility shall notify the
commission in writing of additional construction proposed under this section,
and shall attach to the notice a statement of the federal lending agency
authorizing the water utility to use the remaining project funds in the manner
proposed.
Section 5. System Maps
and Records. Within thirty (30) days after completion of construction
authorized under this administrative regulation, the utility shall revise its
system maps and records maintained pursuant to
807 KAR 5:006,
Section 23, to include all required information regarding the new
construction.
STATUTORY AUTHORITY:
KRS
278.020(1),
278.023,
278.040(3),
278.190,
278.300