Kentucky Public Service Commission

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 water service rates proposed by Southern District are denied. 3. The rates set forth in the Appendix to this Order are approved for services rendered by Southern District on and after the date of this Order. 4. Southern District is authorized to assess a surcharge of $5.25 per month per customer for 60 months or until the cost of new meters has been assessed, whichever occurs first, to fund its meter replacement efforts subject to the following conditions: a. Within 90 days of the entry of a final Order, Southern District shall file with the Commission a comprehensive plan that establishes priorities and a time schedule for replacing its current meters and provide a spending plan for the proceeds of a surcharge. b. Southern District shall deposit the surcharge collections into a separate interest-bearing account. c. No surcharge proceeds shall be withdrawn from the separate interest-bearing account until the Commission has approved Southern District's comprehensive meter replacement plan. d. Southern District shall file monthly activity reports with the Commission that include a statement of monthly surcharge billings and collections; a monthly surcharge bank statement; a list of each payment from the account, its payee, and a description of its purpose; and invoices supporting each payment.

Southern Water and Sewer District First Revised Comments on Staff Report

Order Entered: 1. Southern District's motion requesting approval to extend the management contract with UMG is granted. 2. Southern District's motion requesting approval to enter into a contract with RG3 for the purchase of new meters is deferred to Case No. 2019-00328.

Letter Filing Document into the Record

Southern Water & Sewer District's Response to Commission's Third Post-Hearing Request for Information

Commission Staff's Third Post-Hearing Request for Information to Southern Water and Sewer District

Southern Water and Sewer District Request for Approval to Award Meter Bid Package

Southern Water and Sewer District Request for Approval to Extend UMG Contract

Southern Water and Sewer District Comments on Staff Report

Letter Filing Document into the Record

Attorney General Comments on Commission Staff Report

Southern Water and Sewer District Notice of Filing of Loan Agreement

Order Entered: 1 . Southern District's petition for confidential protection for the designated materials in its response to Staff's First Post-Hearing Request, Items 25, and 28 is denied. 2. Within 30 days of the date of this Order, Southern District shall file revised pages reflecting as unredacted the information that has been denied confidential treatment.

Southern Water and Sewer District Meter Bid Information

Notice of Filing of Commission Staff Report

Notice of Filing Hearing Documents

Order Entered: Testimony proffered regarding Southern District at the July 16, 2019, hearing in Case No. 2019-00041 is incorporated by reference into this proceeding

Order Entered: 1. The Order of June 6, 2019, is amended such that Southern District shall immediately suspend any flat-rate billings for its commercial customers and shall place into effect the interim volumetric rate set forth in the Appendix to this Order. 2. Southern District shall maintain its records in such a manner as to enable it, or the Commission, or any of Southern District's customers, to determine the amounts to be refunded and to whom any refund is due in the event that a refund of any portion of the interim base rate increase is ordered by the Commission. 3. Within 20 days of the date of this Order, Southern District 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. 4. All other provisions of the June 6, 2019 Order in Case No. 2019-00131 not in conflict with this Order remain in full force and effect.

Order Entered: 1. No later than August 16, 2019 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. 2. All other provisions of the Commission's May 16, 2019, Order not in conflict with this Order shall remain in full force and effect.

Notice of Filing Documents

Order Entered: 1. Southern District's motion for approval of a four-year, $150,000 loan is denied. 2. Southern District shall file an application, pursuant to KRS 278.300, for approval of the loan as a separate proceeding.

Southern Water and Sewer District Motion for Approval of Loan

Southern Water and Sewer District Notice of Filing of UMG Invoice

Southern Water and Sewer District Response to Staff First Post Hearing Request for Information

Southern Water and Sewer District Response to Commission Staff Second Post Hearing Request for Information

Southern Water and Sewer District Updated Rates and Charges

Southern Water and Sewer District Response to Staff Post Hearing Date Request and Request for Confidential Treatment

Southern Water and Sewer District Response to Commission Staff Post Hearing Data Request

Commission Staff's Second Post-Hearing Request for Information to Southern Water and Sewer District

Order Entered: 1 . Southern District is authorized to place into effect the interim base rate increase, subject to refund, set forth in the Appendix to this Order, for service rendered on and after the date of this Order. 2. Southern District shall maintain its records in such a manner as will enable it, or the Commission, or any of Southern District's customers, to determine the amounts to be refunded and to whom any refund is due in the event that a refund of any portion of the interim base rate increase is ordered by the Commission. 3. Southern District shall issue a request for bids for the replacement of its meters no later than July 15, 2019. 4. Southern District shall fi le the request for bids with the Commission no later than July 20, 2019. 5. Southern District shall file a written report with the Commission, beginning August 1, 2019, and continuing on the first day of each subsequent month for the next six months, providing the status of Southern District's progress in obtaining replacement meters. 6. Southern District shall cease both the reading and testing of its meters until further Order of the Commission. 7. During the pendency of this case, Southern shall not enter into any contract for management, finance, or otherwise for a period longer than 30 days without the prior written consent of the Commission.

Attorney General Comments

Order Entered: 1. No later than July 19, 2019, 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 Southern District'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 Southern District's financial condition supports a higher rate than Southern District proposes or the assessment of an additional rate or charge not proposed in Southern District's Application, Southern District shall also state, in its response to the Commission Staff Report, 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 Southern District accounts for the depreciation of Southern District's assets, Southern District in its response to the Commission Staff Report shall also state its position in writing on whether the Commission should require Southern District to implement the proposed change for accounting purposes.

Commission Staff's First Post-Hearing Request for Information to Southern Water and Sewer District

Attorney General's Notice of Intent to File Comments

Notice of Filing Documents into the Record

Order Entered: 1. Post-hearing data requests shall be filed in the record on or before May 15, 2019. 2. Responses to post-hearing data requests shall be filed in the record on or before June 18, 2019. 3. On or before May 15, 2019 the Attorney General will file in the record his intent to opine. 4. If the Attorney General determines he will file comments, he shall file these on or before May 22, 2019. 5. If the Attorney General files comments in the record, Southern Water and Sewer District may file a response to those comments on or before June 4, 2019.

Notice of Filing Document in the Record

Southern Water and Sewer District Publication of Hearing Notice

Attorney General Response to Commission Order

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. The Attorney General shall comply with all provisions of the Commission's regulations, 807 KAR 5:001 , Section 7, related to the service and electronic filing of documents. 4. Pursuant to 807 KAR 5:001, Section 8(9), within seven days of entry of this Order, the Attorney General shall file a written statement with the Commission that: a. Certifies that it, or its agent, possesses the facilities to receive electronic transmissions; and b. Sets forth the electronic mail address to which all electronic notices and messages related to this proceeding should be served.

Attorney General Motion to Intervene

Order Entered: 1. Southern District, Chairman Jeff Prater, UMG Special Projects Manager Donald R. Compton, UMG Special Projects Manager Grondall Potter, CPA Michael R. Spears, and CPA Jeff Reed shall appear for a formal hearing in this matter on Thursday, May 9, 2019, at 9 a.m. Eastern Daylight Time, at the offices of the Public Service Commission at 211 Sower Boulevard, Frankfort, Kentucky, for the purpose of presenting evidence in support of the request for a rate adjustment. 2. Southern District shall give notice of the hearing in compliance with 807 KAR 5:001, Section 9(2)(b). 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, shall forward a duplicate of the notice and request to the Commission. 3. Pursuant to KRS 278.360 and 807 KAR 5:001, Section 9(9), a digital video transcript shall be made of the hearing.

No deficiency letter

Acknowledge Receipt of Filing

Southern Water and Sewer District Application for Alternative Rate Adjustment