Kentucky Public Service Commission

Order Entered: 1. This case is opened to monitor Southern District’s Water Loss Reduction Surcharge proceeds and collections. 2. The record of Case No. 2024-00251 is incorporated by reference in this proceeding. 3. Southern District shall only use surcharge proceeds for costs related to develop of the capital plan described below, and for initial debt service payments for the projects executed in furtherance of the capital plan. The surcharge shall not be used for any other means, such as, funding operating expenses or small capital expenditures incurred for water loss mitigation, such as acoustical devices or trucks. 4. Within 150 days of the date of service of this Order, Southern District shall file into the record of Case No. 2025-00232, documentation of a proposal selection process to procure a professional engineering firm for the purpose of developing a 15– 20-year capital plan (capital plan) that prioritizes water loss initiatives. 5. Within 240 days of the filing of the engineering procurement selection in Item #2, Southern District shall file the capital plan into the record of Case No. 2025-00232. 6. Once the capital plan has been approved by the Commission, Southern District shall file a plan of execution, verified by its Board of Commissioners, approving the district to move forward according to the capital plan, as well as Board of Commissioner’s authorizations to request a Certificate of Public Convenience and Necessity (CPCN) and financing, if applicable.