Kentucky Public Service Commission

Order Entered: 1. The findings I through 24 of the Commission’s Order of December 21, 2013 are affirmed. 2. Southern District’s proposed rates for water service are denied. 3. Southern District’s proposed rates for sewer service are approved. 4. Southern District shall charge the rates set forth in Appendix A to this Order for water and sewer service rendered on and after the date of this Order. 5. Within 20 days of the date of this Order and using the Commission’s Electronic Tariff Filing System, Southern District shall file with the Commission revised tariff sheets that contain the rates set forth in Appendix A. 6. Southern District shall for, accounting and ratemaking purposes, use the “PSC Approved Service Life” set forth in Appendix B to this Order for the listed classes of assets when calculating and reporting depreciation for all reporting periods after the date of this Order, but shall make no retroactive adjustment to its books to account for the cumulative effect of this change in accounting estimate. 7. Within 90 days of the date of this Order, Southern District shall revise its accounting procedures and internal controls to include methods and practices that reasonably and fairly allocate and assign revenues and expenses between its water and sewer operations and shall file with the Commission a copy of these revised procedures and controls and documentary evidence that its Board of Commissioners has formally adopted such procedures and controls.

Attorney General's Written Comments

Order Entered: 1. The record in this proceeding shall remain open for 20 days from the date of this Order to permit the parties to submit written comments on and objections to the findings set forth in the Commission Staffs Report of February 15, 2013. 2. A party’s failure to object to any finding set forth in the Commission Staff Report shall be deemed as agreement: with that finding. 3. Any party desiring a hearing in this matter shall file with the Commission a written request for such hearing within 20 days of the date of this Order. 4. The parties are placed on notice that in reaching a final decision in this matter, the Commission will consider the issues set forth in the Appendix to this Order. 5. Any party wishing to submit comments or a memorandum on one or more of the issues set forth in the Appendix to this Order shall file with the Commission such comments or memorandum within 20 days of the date of this Order. 6. Any party wishing oral arguments on one or more of the issues set forth in the Appendix to this Order shall file with the Commission a request for oral argument within 20 days of the date of this Order. 7. If no request for hearing or for oral arguments is filed with the Commission within 20 days of the date of this Order, this matter shall stand submitted for decision.

Notice of Filing of Commission Staff Report

USDA Rural Development Documents from Southern Water and Sewer District File

Southern Water & Sewer District Response

Commission Staff's First Set of Information Requests to Southern Water and Sewer District

Freedom of Information Act Request to Michele Witt, USDA Rural Development

Order Entered: The rates set forth in the Appendix to this Order are, subject to change, approved for water and sewer service that Southern District renders on and after the date of this Order. 2. Within 20 days of the date of this Order, Southern District shall file revised tariff sheets with the Commission setting forth the rates approved in this Order. 3. The record of this proceeding is reopened to take additional evidence regarding the lawfulness and reasonableness of annual payments that Southern District presently makes to Floyd County Fiscal Court. 4. No later than February 15, 2013, Commission Staff shall file with the Commission a detailed report on Southern District’s annual payment to Floyd County Fiscal Court and shall include in such report all documents and other evidence that it has collected regarding such payments. 5. A ruling upon all other issues presented in the Commission Staff Report and the AG’s Comments is deferred.

AG's Written Comments on Report of Commission Staff

Southern Water and Sewer District Response to Commission Staff Report of 110112

Notice of Filing of Commission Staff Report

Letter to Dale Hamilton

Order Entered: The motion is granted and the Attorney General is hereby made a party to these proceedings.

Motion to intervene of the AG

Order Entered: 1. This proceeding is established to review the reasonableness of Southern District’s proposed rates. 2. No later than 11/1/12, Commission Staff shall file with the Commission and serve upon all parties of record a written report containing its findings and recommendations regarding Southern District‘s requested rate adjustment. 3. The parties shall file with the Commission their written comments on and any objections to the findings and recommendations contained in the Commission Staff Report no later than 11/15/12, or 14 days after the date of the filing of the Commission Staff Report, whichever occurs earlier. Any party may file with such submission any additional evidence for the Commission’s consideration. 4. A party’s failure to file written objections to a finding or recommendation contained in the Commission Staff Report by 11/1512, or 14 days after the date of the filing of the Commission Staff Report, whichever occurs earlier, shall be deemed as agreement with that finding or recommendation. 5. No later than 11/1512, or 14 days after the date of the filing of the Commission Staff Report, whichever occurs earlier, each party shall notify the Commission in writing whether this matter may be submitted for decision based upon the existing record without hearing. 6. Unless all parties request that this matter be submitted for decision upon the existing record, an informal conference shall be held on 11/27/12 at 1:30 p.m. at the Commission’s offices.

Order Entered: (1) Southern District's request for a deviation is granted. (2) Southern District is permitted to deviate from 807 KAR 5:076, Section 8. (3) South District's application for rate adjustment is considered filed as of the date of this Order.

Southern Water & Sewer's Affidavit of Publications

Dale Hamilton's Request for Intervention (Citizens of Wayland)

Acknowledge Receipt of Filing

Alternative Rate Adjustment Filing of Southern Water and Sewer District

Acknowledge Receipt of Filing

Southern Water & Sewer District Notice of Intent to File Application to Increase Rates for Water and Sewer Service Using Historical Test Year