CASE NUMBER:

e . KY. PUBLIC SERVICE COMMISSION INDEX FOR CASE: 99-012 AS OF : 02/03/99 PEAKS MILL WATER DISTRICT Rates - PWA

IN THE MATTER OF THE PURCHASED WATER ADJUSTMENT OF PEAKS MILL WATER DISTRICT

SEQ ENTRY NBR DATE REMARKS

0001 01/07/99 Application. 0002 01/13/99 Acknowledgement letter.

0003 01/22/99 No def. letter MOO01 01/20/99 NORTH SHELBYWATER CO WARNER GAINES-NOTICE TO CUSTOMERS OF WATER RATE ADJUSTMENT

0004 02/02/99 FINAL ORDER APPROVING RATES; TARIFF SUBMITTED IS REJECTED AS FILED

COMMONWEALTH OF KENTUCKY PUBLIC SERVICE COMMISSION

730 SCHENKEL LANE POST OFFICE BOX 61 5 FRANKFORT, KY. 40602

(502) 564-3940

CERTIFICATE OF SERVICE

RE: Case No. 99-012 PEAKS MILL WATER DISTRICT

I, Stephanie Bell, Secretary of the Public Service Commission, hereby certify that the enclosed attested copy of the Commission's Order in the above case was served upon the following by U.S. Mail on February 2, 1999.

Parties of Record:

Patsy Perkins Bookkeeper Peaks Mill Water District 256 Perkins Road Frankfort, KY. 40601

SB/sa Enclosure

Secretary of the Commission

- COMMONWEALTH OF KENTUCKY

BEFORE THE PUBLIC SERVICE COMMISSION

In the Matter of:

PURCHASED WATER ADJUSTMENT OF ) PEAKS MILL WATER DISTRICT 1 CASE NO. 99-012

O R D E R

On January 7, 1999, Peaks Mill Water District (“Peaks Mill”) applied for approval

to adjust its rates pursuant to the purchased water adjustment procedure. KRS 278.015

and 807 KAR 5:068.

In its application, Peaks Mill indicated that it purchased water from Frankfort

Electric and Water Plant Board (“Frankfort Electric”), and that the rate charged by

Frankfort Electric would increase from $1.30 per 1,000 gallons to $1.365 per 1,000

gallons. However, as shown in Frankfort Electric’s notice to Peaks Mill, this is the rate

for wholesalers who produce water. As Peaks Mill does not produce water, the current

rate charged by Frankfort Electric is $1.25 and the proposed rate is $1.313. In addition

to the rate charged by Frankfort Electric, Peaks Mill pays a $0.05 Kentucky River

Authority fee; therefore, Peaks Mill’s current rate is $1.30 and the new rate will be

$1.363. Staff has made these adjustments in the calculation of Peaks Mill’s rates.

The Commission, having reviewed the record and being sufficiently advised,

finds that:

1. Peaks Mill purchases its water from Frankfort Electric.

2. Frankfort Electric increased the wholesale water rate charged to Peaks

Mill from $1.30 per 1,000 gallons to $1.363 per 1,000 gallons purchased effective

January IO, 1999.

3, During the 12 months ending November 30, 1998, Peaks Mill purchased

74,897,200 gallons of water and sold 55,752,000 gallons.

4. The increase in the cost of purchased water is $4,718.52, resulting in a

purchased water adjustment of $0.08 per 1,000 gallons of water. Based on a monthly

usage of 5,000 gallons, the average bill of a Peaks Mill customer would increase $0.40

from $27.03 to $27.43, or 1.5 percent.

5. The calculations and proposed tariff provided by Peaks Mill are incorrect

and should be denied.

6. The purchased water adjustment of $0.08 per 1,000 gallons and the rates

in Appendix A, attached hereto and incorporated herein, are fair, just, and reasonable

and should be approved.

-

IT IS THEREFORE ORDERED that:

1. The purchased water adjustment of $0.08 per 1,000 gallons and the rates

in Appendix A are approved for services rendered on and after January 10, 1999.

2.

3.

The tariff submitted by Peaks Mill is hereby rejected as filed.

Within 20 days from the effective date of this Order, Peaks Mill shall file a

copy of its revised tariff.

4. Within 20 days from the effective date of this Order, Peaks Mill shall file a

copy of the notice to its customers and verification that such notice has been given.

-2-

Done at Frankfort, Kentucky, this 2nd day of February, 1999.

By the Commission

ATTESl I

APPENDIX A

APPENDIX TO AN ORDER OF THE KENT1 CKY P JBLIC SERVICE COMMISSION IN CASE NO. 99-012 DATED FEBRUARY 2, 1999

The following rates and charges are prescribed for the customers in the area

served by Peaks Mill Water District. All other rates and charges not specifically

mentioned herein shall remain the same as those in effect under authority of the

Commission prior to the effective date of this Order

Monthlv Water Rates

518 Inch - 1 Inch Meter First 2,000 gallons $15.16 Minimum bill Next 1,000 gallons 4.09 per 1,000 gallons Next 2,000 gallons 3.49 per 1,000 gallons Over 5,000 gallons 2.29 per 1,000 gallons

1 1/2 Inch - 2 Inch Meter First 1 13,000 gallons Over 11 3,000 gallons

$1 94.56 per 1,000 gallons 1.57 per 1,000 gallons

-

0 Form for filing Rate S c h e d u l e s

%%of Issuing Corporati-on s M i l l TNntPr r ) i n + r i r t

For Northwest Frankl in Co Community, Town or C l t J 7

- 1 P.S.C. NO.

1 - SHEET NO.

CANCELLING P.S.C. NO.

SHEET NO.

CLASSIFICATION OF SERVICE

Res i d e n t a l ,& Month

, F i r s t 2 , 0 0 0 ga l lons p e r month, Next 1 , 0 0 0 ga l lons p e r month, Next 2 ,000 ga l lons p e r month, Over 5,000 ga l lons p e r month,

Commericial - Per Month , F i r s t ll3,OOO ga l lons p e r month Over 113,000 ga l lons p e r month

(minimum bi l l . ) p e r 1 ,000 ga l lons pe r 1 , 0 0 0 ga l lons pe r 1 , 0 0 0 ga l lons

(minimum b i l l 1 pe r 1 , 0 0 0 ga l lons

RATE PER UNIT

D.1TE OF ISSUE DATE EFFECTIVE

Issued by a u t h o r i t y of an Order of t h e Public S e r v i c e Commission of Kentucky in Case No. d a t e d

.

COMMONWEALTH O F KENTUCKY PUBLIC SERVICE COMMISSION

730 SCHENKEL LANE POST OFFICE BOX 61 5 FRANKFORT, KY. 40602

(502) 564-3940

January 22, 1 9 9 9

Patsy Perkins Bookkeeper Peaks Mill Water District 256 Perkins Road Frankfort, KY. 40601

RE: Case No. 99-012 PEAKS MILL WATER DISTRICT

The Commission staff has reviewed your application in the above case and finds that it meets the minimum filing require- ments. Enclosed please find a stamped filed copy of the first page of your filing. This case has been docketed and will be processed as expeditiously as possible.

If you need further assistance, please contact my staff at 5 0 2 / 5 6 4 - 3 9 4 0 .

Sincerely,

S S

SB/sa Enclosure

- c c

PURCHASED WATER ADJUSTMENT FOR WATER DISTRICTS AND ASSOCIATIONS

(807 KAR 5:068)

M i l l Water D i s t r i c t JAN 07 19g9 (Name of Utility)

Jan 1 1999 (Date)

256 P e r k i n s Road (Address)

F r a n k f o r t , Ky 40601 (City, State)

(502 ) 227-5740 (Telephone Number)

1.a. Name o f all wholesale suppliers and the base (current) rate and changed rate of each. In the event the water purchased is billed b y the supplier o n a rate that is not a flat rate schedule, the entire rate shedule must be shown. At tach additional sheets i f necessary.

F r a n k f o r t P l a n t Board

Base Rate Chanaed Rate

1 .b. A copy of the supplier's notice of the changed rate showing the ef fect ive date of the increase is attached as Exhibit A .

Pursuar

NOTICE TO CUSTOMERS

to the Regulations of the Public Service Corn-sion (Commission), the Frankfort Electric and Water Plant Board (FEWPB) gives Notice that it has filed a water rate increase for the Peaks Mill Water District, Farmdale Water District, North Shelby Water District, U.S. 60 Water District and Elkhorn Water District With the Commission. It proposes the rate listed below, which is approximately a 5% increase over the current rate to be effective January 10, 1999. Further information may be obtai~ed ftom the Commission or the FFWPB. The rates proposed in this Notice may be modified by the Commission. Such action by the Commission may result in the rates being higher or lower than those proposed by the FEWPB.

Any corporation, association, body politic or person m y by timely motion, within 30 days of this Notice, request internention in this case. Intervention beyond the 30 day period may be granted for good cause shown. The Motion must be submitted to the Public Service GQmmission, 730 Schenkel Lane, Box 615, Frankfort, Ky. 40602 and should state the p u n d s for the q u a t , including the interat and status of the party. Intervenors may obtain wpiw of the tan'ffs and proposed rates by contacting the FEWPB at the address below. A copy of the tariff is available for public review at the ofice of the FEWB and at the Public Service Commission, 730 Schenkel -Lane, Frankfort, My. 4Q601, (502) 564-3940.

Warner Caines General Manager 317 W. Second St. Frankfort, KY 4060 1 (502) 223-3401

Peaks Mill Water District Farmdale Water District U.S. 60 Water District

North Shelby Water District Elkhorn Water District

Current rate: $1.25 per 1000 gallons Proposed rate: $1.3 13 per 1000 gallons

COMMONWEALTH OF KENTUCKY PUBLIC SERVICE COMMISSION

730 SCHENKEL LANE POST OFFICE BOX 61 5 FRANKFORT, KY. 40602

(502) 564-3940

January 13, 1999

Patsy Perkins Bookkeeper Peaks Mill Water District 2 5 6 Perkins Road Frankfort, KY. 40601

RE: Case No. 99-012 PEAKS MILL WATER DISTRICT (Rates - PWA)

This letter is to acknowledge receipt of initial application in the above case. January 7, 1999 and has been assigned Case No. 99-012. In all future correspondence or filings in connection with this case, please reference the above case number.

The application was date-stamped received

If you need further assistance, please contact my staff at 5 0 2 / 5 6 4 - 3 9 4 0 .

Sincerely,

slaw ih4 Stephanie Bell Secretary of the Commission

PURCHASED WATER ADJUSTMENT FOR WATER DISTRICTS AND ASSOCIATIONS

(807 KAR 5:068)

(Name of Utility)

Jan 1 1999 (Date)

256 P e r k i n s Road (Address)

F r a n k f o r t , Kv 40601 (City, State)

( 5 0 2 ) 227-5740 (Telephone Number)

1.a. Name o f all wholesale suppliers and the base (current) rate and changed rate o f each. In the event the water purchased is billed by the supplier o n a rate that is not a flat rate schedule, the entire rate shedule must be shown. At tach additional sheets i f necessary.

F r a n k f o r t P l a n t Board

Base Rate Chanqed Rate

1 .b. A copy of the supplier's notice of the changed rate showing the effective date of the increase is attached as Exhibit A .

2. Twelve-month period upon which the purchased water adjustment is based (This twelve-month period must end within 90 days of this filing).

From Dee. 1,1997 through Nov. 90, 1998 (month and year) (month and year)

3. Statement of water purchases. Where water is purchased from more than one supplier, purchases from each supplier must be shown separately. If water is purchased through a decling block rate schedule, purchases for each month must be shown. Attach an additional sheet if necessary.

Supplier(s1 Gallons Purchased during 12 month period

Frankfort Plan t Board 74,897,200

TOTAL PURCHASES 749 897 200

4. Total sales for the 12 month period 55,752,000

5. Increased water cost $4,868.00

The increased water cost is the cost difference between purchases a t base (current rate) and purchases a t new rate.

6. Purchased water adjustment factor .09

The purchased water adjustment factor is obtained by dividing the increased cost of water by the total gallons sold.

Note: The purchased water adjustment factor is added to each thousand gallons sold. I f the minimum usage is 2,000 gallons then the purchased water adjustment factor wou ld be added t o the minimum bill twice. Revised tariff sheets must be attached showing the rate t o be charged by the uti l i ty and the effective date o f the increased rates.

Jan. 1,1999 7. Proposed effective date

d d 4 (Signature of Utility Officer) 4

'Form'for filing Rate S c h a l e s FOR Northwe m Frankl in C O

I Community, Town or City

P.S.C. KY. NO. 1

SHEET NO.

1 CANCELLING P.S.C. KY NO.

SHEET NO.

CLASSIFICATION OF SERVICE

RATE PER UNIT

Res i d en= - Per Month

F i r s t 2 ,000 ga l lons p e r month Next 1 , 0 0 0 ga l lons p e r month Next 2 , 0 0 0 ga l lons p e r month Over 5 ,000 ga l lons p e r month

Commericial - Per Month

I

I F i r s t 113,000 gal lons p e r month

I Over ll3,OOO ga l lons pe r month

(minimum b i l l ) $ 15.18 (1) per 1 , 0 0 0 ga l lons 4.10 (I)

per 1 ,000 ga l lons 2.30 (1) per 1 , 0 0 0 ga l lons 3.50 (1)

(minimum b i l l ) 195.69 (1) p e r 1 , 0 0 0 ga l lons 1.58 (1)

DATE EFFECTIVE MONTB DATE YEAR MONTH DATE YEAR ' DATE OF ISSUE

ISSUED BY c / d d d ! TITLE em/eMd SIGNATURE OF @FFICER

Issued by authority of an Order of the Public Service Commission of Kentucky in Ca No. dated