Kentucky Public Service Commission

Final Order Entered: 1. This case is opened to address certain outstanding petitions for confidential treatment. 2. The petitions for confidential treatment listed in Appendix B to this Order are granted. 3. The granting of these petitions shall not be cited as precedent in other proceedings before the Commission. 4. All movants shall review the petitions to determine if the material for which confidential treatment was requested still warrants confidential treatment. 5. A movant shall inform the Commission in writing, and filed in the original case file, if it determines that the information contained in a petition that is granted by this Order no longer warrants confidential treatment. 6. The Commission shall make available for inspection, upon request, any materials that a movant determines no longer warrants confidential treatment. 7. This case is closed and removed from the Commission's docket.

Order Entered: 1. Kentucky-American's January 29, 2016 and June 29, 2016 petitions for confidential protection are granted. 2. Kentucky-American's April 15, 2016 petition is granted in part and denied in part. The designated materials in the April 15, 2016 petition, with the exception of executive office compensation information, is granted confidential protection. The executive office compensation information in the April 15, 2016 petition is denied confidential protection. 3. The designated materials for which confidential protection was granted shall not be placed in the public record or made available for public inspection for an indefinite time, or until further Orders of this Commission. 4. Within 30 days of the date of this Order, Kentucky-American shall file a revised response to Staff's Second Request, item 33(c)-(d), reflecting as unredacted the material for which confidential protection was denied in ordering paragraph 2. 5. Use of the materials in question for which confidential protection was granted in any Commission proceeding shall be in compliance with 807 KAR 5:001, Section 13(9). 6. Kentucky-American shall inform the Commission if the materials in question for which confidential protection was granted become publicly available or no longer qualify for confidential treatment.

Order Entered: 1. KAWC's petition for confidential protection is granted in part and denied in part. 2. KAWC's request for confidential protection for its responses to Staffs Second Request, Items 29.a.-29.d., AG's First Request, Items 9.a.-9.d., 52, and 64.c., is granted in part, as discussed in the findings above. Confidential protection for all employee identification numbers and the job title information for all individuals who are not KAWC's executive officers is granted, and the information shall neither be placed in the public record or made available for public inspection for an indefinite period or until further Orders of this Commission. Confidential protection for the officer and job title information for KAWC's executive officers is denied confidential protection. 3. KAWC's request for confidential protection for its responses to AG's First Request, Items 33 and 34, is denied without prejudice to an amended petition's being filed by AUS individually or jointly with KAWC. 4. KAWC's request for confidential protection for its responses to Staffs Second Request, Item 50, AG's First Request, Items 12, 16, 20, 99, 118, 119, 120, 122, 123, 124, and 128, and LFUCG's First Request, Item 26, is granted. The information shall not be placed in the public record or made available for public inspection for an indefinite period of time.

Order Entered: KAWC's motion for confidential protection is granted in part and denied in part. 2. Pursuant to KRS 61.878, excepting executive officer compensation information, the information for which KAWC requests confidential protection shall not be placed in the public record or made available for public inspection for an indefinite period, or until further Order of the Commission. 3. The executive officer compensation information for which KAWC requests confidential protection does not fall within the scope of KRS 61.878 and therefore is denied confidential protection. 4. Within 14 days of the date of this Order, KAWC shall file a revised response reflecting as unreacted the information which has been denied confidential treatment in accordance with ordering paragraphs 2 and 3. 5. Use of the materials in question in any Commission proceeding shall be in compliance with 807 KAR 5:001, Section 13(9). 6. KAWC shall inform the Commission if the materials in question become publicly available or no longer qualify for confidential treatment.

Order Entered: 1. KAWC's June 24, 2016 Petition for confidential protection is granted. 2. The material supplied in response to the AG's Initial Request, Item 22, and submitted as an attachment to KAWC's Petition shall not be placed in the public record or made available for public inspection for an indefinite time, or until further Orders of this Commission. 3. Use of the materials in question in any Commission proceeding shall be in compliance with 807 KAR 5:001, Section 13(9). 4. KAWC shall inform the Commission if the materials in question become publicly available or no longer qualify for confidential treatment. 5. If a non-party to this proceeding requests to inspect materials granted confidential treatment by this Order, K.AWC shall have 20 days from receipt of written notice of the request to demonstrate that the materials still fall within the exclusions from disclosure requirements established in KRS 61 .878. If K.AWC is unable to make such demonstration, the requested materials shall be made available for inspection. Otherwise, the Commission shall deny the request for inspection. 6. The Commission shall not make the requested materials available for inspection for 20 days following an Order finding that the materials no longer qualify for confidential treatment in order to allow K.AWC to seek a remedy afforded by law.

Final Order Entered: 1. The rates and charges proposed by Kentucky-American are denied. 2. Kentucky-American's motion to approve the unanimous Settlement Agreement, attached hereto as Appendix A, is granted. 3. The rates and charges set forth in the Appendix B to this Order are fair, just, and reasonable and are approved for water service that Kentucky-American renders on and after August 28, 2016. 4. The depreciation rates set forth in Exhibit B of the Settlement Agreement are approved and authorized for Kentucky-American's use effective August 28, 2016. 5. Kentucky-American and AWWC are released from Condition 16 in Appendix A of the Commission's April16, 2007 Final Order in Case No. 2006-00197. 6. Kentucky-American shall, within 120 days of the date of this Order, file a report that describes the billing practices that it has in place to ensure that a Kentucky-American customer is able to determine whether the amounts on his or her bill have been correctly calculated. 7. Kentucky-American shall desist from the "long bill" and "short bill" practice that is not contained in its tariff sheets on file with the Commission. 8. Kentucky-American shall, within 90 days of the date of this Order, refund with interest all amounts collected since January 1, 2012, due to a "long bill" monthly service charge that has not already been offset by a "short bill."

Responses to Hearing Data Requests

Monica H. Braun Kentucky-American Water Company

20160718_PSC Notice of Filing.pdf

20160712_Single-Stack_0364.pdf

Proof of publishing hearing notice

Monica H. Braun Kentucky-American Water Company

KAWs Motion to Approve Settlement and related Settlement Testimony

Lindsey Ingram Kentucky American Water

Notice of Filing of Settlement Agreement

Lindsey Ingram Kentucky American Water

KAWCs Responses to Staffs Fourth Data Requests

Monica H. Braun Kentucky-American Water Company

Petition for Confidential Protection

Monica H. Braun Kentucky-American Water Company

Order Entered: 1. AG/LFUCG's motion to deviate from 807 KAR 5:001, Sections 8(3) and 8(12)(a), and from ordering paragraph 3.a of the Commission's February 22, 2016 Order is granted, and AG/LFUCG are not required to file the Woolridge Articles in paper format.

20160627_PSC Memo.pdf

Notice of Filing Hearing Notice

Monica H. Braun Kentucky-American Water Company

Supplemental Response to AG 1-22 and Petition for Confidential Protection

Monica H. Braun Kentucky-American Water Company

Data Request

Order Entered: 1. KAWC's objection to providing the Attorney General with the earned returns of American Water's other operating utility subsidiaries as sought through the AG's Initial Request, Item 22, is overruled. 2. The Attorney General's request for the Commission to order KAWC to provide the earned returns of American Water's other operating utility subsidiaries in response to the AG's Initial Request, Item 22, is granted, and KAWC shall file within seven days of the date of this Order the information regarding earned ROEs for American Water's other operating subsidiaries. 3. KAWC shall file within seven days of the date of this Order information regarding American Water subsidiaries' earned ROEs as requested by Staff's Second Request, Item 75.d.

20160615_PSC Minutes of Information Session and Public Meeting.pdf

Excel files for Rebuttal Witness Spitznagel

Lindsey Ingram Kentucky American Water

KAW Rebuttal Testimony

Lindsey Ingram Kentucky American Water

Attorney General and Lexington-Fayette Urban County Governments Motion for Deviation

Angela M. Goad Office of the Attorney General

Base Period Update

Lindsey Ingram KAW

Supplemental Response to Staff 3-21

Lindsey Ingram KAW

Attorney General and Lexington-Fayette Urban County Governments Discovery Responses

Angela M. Goad Office of the Attorney General

Attorney General and Lexington-Fayette Urban County Governments Discovery Responses

Angela M. Goad Office of the Attorney General

Attorney General and Lexington-Fayette Urban County Governments Discovery Responses

Angela M. Goad Office of the Attorney General

Read first document and response to Kentucky American Water Companys data requests with verification

Iris G. Skidmore Community Action Council for Lexington-Fayette, Bourbon, Harrison, and Nicholas Counties, Inc.

Order Entered: The hearing scheduled on July 13, 2016, shall commence at 9:00 a.m. Eastern Daylight Time at the offices of the Public Service Commission, 211 Sower Boulevard, Frankfort, Kentucky.

KAWCs Data Requests to AG and LFUCG, and CAC

Monica H. Braun Kentucky-American Water Company

Data Request

Order Entered: 1.The hearing for the purpose of taking evidence on KAWC's application scheduled for July 12, 2016, is rescheduled to July 13, 2016, at 10:00 a.m. Eastern Daylight Time. 2. A public meeting for the purpose of providing general information about this proceeding and KAWC's proposed rate adjustment and for taking public comment on KAWC's proposed rate adjustment shall be held on June 7, 2016, beginning at 5:30 p.m., Eastern Daylight Time, at Bluegrass Community and Technical College, Conference Center, Leestown Road Campus, 164 Opportunity Way, Lexington, Kentucky. 3. KAWC shall publish notice of the scheduled hearing in accordance with 807 KAR 5:001, Section 9(2) (b)2, not less than seven nor more than 21 days prior to the day of the scheduled hearing. In addition, the notice of hearing shall include the following statement: "This hearing will be streamed live and may be viewed on the PSC website, psc.ky.gov." At the time the notice is mailed or publication is requested, KAWC shall forward a duplicate of the notice and request to the Commission. 4. All other provisions of the Commission's April 1, 2016 Order not in conflict with the provisions of this Order shall remain in full force and effect.

Attorney General and Lexington-Fayette Urban County Governments Pre-Filed Testimony

Angela M. Goad Office of the Attorney General

CACs direct testimony and cover letter

Iris G. Skidmore Community Action Council for Lexington- Fayette, Bourbon, Harrison, and Nicholas Counties, Inc.

KAWs Responses to PSC3, AG2, and LFUCG1

Lindsey Ingram

KAW Objection to AG Second Information Request

Lindsey Ingram

Supplemental Responses to Commission Staffs First and Second Information Requests

Lindsey Ingram

Attorney Generals Second Request for Information

Angela M. Goad Office of the Attorney General

Supplemental Requests for Information to KAWC

Andrea C. Brown LFUCG

Data Request

Order Entered: 1. The informal conference that was originally scheduled for June 21, 2016, is hereby canceled. 2. An informal conference for the purpose of considering the possibility of settlement, the simplification of issues, and any other matters that may aid in the handling or disposition of Kentucky-American Water Company's ("KAWC") application shall be held on July 6, 2016 at 10:00 a.m., Eastern Daylight Time, at the offices of the Public Service Commission, 211 Sower Boulevard, Frankfort, Kentucky. 3. A hearing for the purpose of taking evidence and argument on KAWC's application shall be held on July 12, 2016, beginning at 9:00 a.m., Eastern Daylight Time, at the offices of the Public Service Commission, 211 Sower Boulevard, Frankfort, Kentucky. 4. KAWC shall publish notice of the scheduled hearing in accordance with 807 KAR 5:001, Section 9(2)(b), no more than 21 days and no less than seven days before the day of the scheduled hearing in all areas in which it provides water service. In addition, the notice of hearing shall include the following statement: "This hearing will be streamed live and may be viewed on the PSG website, psc.ky.gov." 5. Pursuant to KRS 278.360 and 807 KAR 5:001, Section 9(9)(a), the record of the hearing in this matter shall be by digital video recording. 6. Any request to cancel or postpone this hearing shall be made by motion filed with the Commission at least one week before the hearing is scheduled to commence.

KAWs Reply in Support of Objection

Lindsey Ingram

Attorney Generals Response to Kentucky-American Water Companys Objection to Initial Request for Information

Angela M. Goad Office of the Attorney General

KAW Responses to AG First Information Request (Excel files)

Lindsey Ingram

KAW Responses to AG First Information Request

Lindsey Ingram

Petition for Confidential Treatment

Monica H. Braun Kentucky-American Water Company

KAWs Response to Item 64(b) of Commission Staffs Second Information Request

Lindsey Ingram

KAW Responses to Commission Staffs Second Information Request (Response 36 Excel files)

Lindsey Ingram

KAWs Responses to Commission Staffs Second Information Request

Lindsey Ingram

KAW Responses to CAC Information Request

Lindsey Ingram

KAW Responses to LFUCG Information Request

Lindsey Ingram

Notice

Objection to AG 1-22

Monica H. Braun Kentucky-American Water Company

Attorney Generals Initial Request for Information

Angela M. Goad Office of the Attorney General

Data Request

Requests for Information to Kentucky-American Water Company

Andrea C. Brown Lexington-Fayette Urban County Government

CACs First Request for Information to KAWC and cover letter

Iris G. Skidmore Community Action Council for Lexington-Fayette, Bourbon, Harrison, and Nicholas Counties, Inc.

Order Entered: 1. Ms. Connell's request for intervention is denied. 2. Ms. Connell's statements challenging KAW's meter readings of her water usage shall be referred to the Commission's Division of Consumer Services for review as an informal complaint.

Order Entered: 1. KAWC's proposed rates are suspended for six months, up to and including August 27, 2016. 2. The procedural schedule set forth in the Appendix to this Order shall be followed. 3. a. Responses to requests for information in paper medium shall be appropriately bound, tabbed and indexed and shall include the name of the witness responsible for responding to the questions related to the information provided, with an original and an electronic version to the Commission. b. Each response shall be answered under oath or, for representatives of a public or private corporation or a partnership or an association or a governmental agency, be accompanied by a signed certification of the preparer or person supervising the preparation of the response on behalf of the entity that the response is true and accurate to the best of that person's knowledge, information, and belief formed after a reasonable inquiry. c. A party shall make timely amendment to any prior response if it obtains information which indicates that the response was incorrect when made or, though correct when made, is now incorrect in any material respect. d. For any request to which a party fails to furnish all or part of the requested information, the party shall provide a written explanation of the specific grounds for its failure to completely and precisely respond.

Customer Notice Verification

Monica H. Braun Kentucky-American Water Company

KAWs Response to Jeanne Connells Request for Intervention

Lindsey W. Ingram

Response

David Barberie Lexington-Fayette Urban County Government

KAWs Responses to Commission Staffs First Information Request

Lindsey W. Ingram

20160209_PSC No Deficiency Letter.pdf

Attorney Generals Written Waiver

Angela M. Goad Office of the Attorney General

CACs Statement and Waiver and read first document

Iris G. Skidmore Community Action Council for Lexington-Fayette, Bourbon, Harrison, and Nicholas Counties, Inc.

Jeanne Connell Request for Intervention

Order entered: The motion of LFUCG to intervene is granted. 2. LFUCG shaii be entitled to the full rights of a party and shall be served with the Commission's Orders and with filed testimony, exhibits, pleadings, correspondence, and ail other documents submitted by parties after the date of this Order. 3.

Order Entered: The motion of CAC to intervene is granted. 2. CAC shall be entitled to the full rights of a party and shall be served with the Commission's Orders and with filed testimony, exhibits, pleadings, correspondence, and all other documents submitted by parties after the date of this Order. 3. CAC shall comply with all provisions of the Commission's regulations, 807 KAR 5:001, Section 8, related to the service and filing of documents. 4. Pursuant to 807 KAR 5:001, Section 8(9), within seven days from the date of this Order, CAC shall file a written statement with the Commission that:

Order Entered: The motion of the Attorney General to intervene is granted. 2. The Attorney General shall be entitled to the full rights of a party and shall be served with the Commission's Orders and with filed testimony, exhibits, pleadings, correspondence, and all other documents submitted by parties after the date of this Order. 3.

Attorney Generals Motion to Intervene

Angela M. Goad Office of the Attorney General

Motion to Intevene

David Barberie Lexington-Fayette Urban County Government

KAWs Application and supporting materials and Petition for Confidential Treatment

Lindsey W. Ingram

CACs motion to intervene and read 1st document.

Iris G. Skidmore Community Action Council for Lexington-Fayette, Bourbon, Harrison, and Nicholas Counties, Inc.

Data Request

20151216_PSC Acknowledgement Letter.pdf

Kentucky-American Water Company Notice of Intent to File an Application for an Adjustment of Water Rates Supported by a Fully Forecasted Test Period Using Electronic Filing Procedures