Kentucky Public Service Commission

Order Entered, nunc pro tunc, that: 1. The Appendix to the November 21 , 2017 Order is amended by deleting the erroneous monthly water rates of $34.07 minimum bill for the first 2,000 gallons of water and $9.30 per 1,000 gallons over 2,000 gallons of water, and adding the correct rates of $27.50 minimum bill for the first 2,000 gallons of water and $7.50 per 1,000 gallons of water used over 2,000 gallons. 2. The rates set forth in the Appendix to this Order shall replace those set forth in the Appendix attached to the November 21, 2017 Order.

Final Order Entered: 1 . The findings contained in the Staff Report are adopted and incorporated by reference into this Order as if fully set out herein. 2. The general service rates proposed by Letcher County are approved. 3. The Leak Adjustment Rate of $4.43 per 1,000 gallons as set forth in Appendix to this Order is approved. 4. The rates set forth in the Appendix to this Order are approved for services rendered by Letcher County on and after the date of this Order. 5. Within 20 days of the date of this Order, Letcher County shall file with this Commission, using the Commission's electronic Tariff Filing System, new tariff sheets setting forth the rates and charges approved herein and their effective date, and stating that the rates and charges were authorized by this Order. 6. Letcher County shall use the mid-point of the depreciable lives of the National Association of Regulatory Utility Commissioners ranges, as proposed in the Application and agreed upon by Staff, to depreciate water plant assets for accounting purposes in all future reporting periods. No adjustment to accumulated depreciation, or retained earnings should be made to account for this change in the accounting estimate.

Response to Staff Report

Mark Lewis Letcher County Water and Sewer District

Staff Report

Order Entered: 1. No later than October 19, 2017, Commission Staff shall file with the Commission and serve upon all parties of record a written report ("Staff Report") containing its findings and recommendations regarding Letcher County's requested rate adjustment. 2. No later than 14 days after the date of the filing of the Commission Staff Report, each party of record shall file with the Commission: a. Its written comments on and any objections to the findings contained in the Commission Staff Report; and b. Any additional evidence for the Commission to consider. 3. If Commission Staff finds that Letcher County's financial condition supports a higher rate than Letcher County proposes or the assessment of an additional rate or charge not proposed in Letcher County's application, Letcher County in its response to the Commission Staff Report shall also state its position in writing on whether the Commission should authorize the assessment of the higher rate or the additional rate or charge. 4. If Commission Staff finds that changes should be made to the manner in which Letcher County accounts for the depreciation of Letcher County's assets, Letcher County in its response to the Commission Staff Report shall also state its position in writing on whether the Commission should require Letcher County to implement the proposed change for accounting purposes.

20170710_PSC No Deficiency Letter.pdf

Alternative Rate Filing application - Case 2017-00211

Mark Lewis Letcher County Water and Sewer District

20170522_PSC Acknowledgement Letter.pdf

Letcher County Water and Sewer District Notice of Intent to File Application for Alternative Rate Adjustment Using Electronic Filing Procedures