2011 Kentucky Revised Statutes CHAPTER 278 PUBLIC SERVICE COMMISSION 278.023 Approval of federally-funded construction projects -- Commission review of agreement and supporting documents -- Surcharge.
KY Rev Stat § 278.023 (1996 through Reg Sess) What's This?
278.023 Approval of federally-funded construction projects -- Commission review
of agreement and supporting documents -- Surcharge.
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The provisions of this section shall apply to any construction project undertaken by
a water association, commission, district, or combined water, gas or sewer district
formed under KRS Chapter 74 or 273, which is financed in whole or in part under
the terms of an agreement between the water utility and the United States
Department of Agriculture or the United States Department of Housing and Urban
Development. Because federal financing of such projects entails prior review and
oversight by the federal agency and obligates the utility to certain actions, and
because conflicting requirements by the federal agency and the Public Service
Commission may place the water utility in an untenable position and delay or
jeopardize such projects, it is declared to be the policy of the Commonwealth that
such agreements shall be accepted by the Public Service Commission, and that the
commission shall not prohibit a water utility from fulfilling its obligations under
such an agreement.
No agreement between a water utility and federal agency under this section shall
take effect until thirty (30) days after such agreement, together with necessary
applications and documentation, is filed with the commission, unless the
commission acts within a lesser time. The commission in its administrative
regulations shall list the specific documents required to be filed under this
subsection.
The commission shall review the project and the agreement, may recommend
changes to the utility and the federal agency, but shall not modify or reject any
portion of the agreement on its own authority. The commission shall issue a
certificate of necessity and convenience and such other orders as may be required to
implement the terms of the agreement no later than thirty (30) days after filing.
The commission shall not prohibit the inclusion of any cost or the use of any
accounting procedure in reviewing or setting the rates of the utility if such cost or
procedure is required as a condition for federal financing of a construction project
under an approved agreement between the water utility and federal agency.
If the federal agency approves a surcharge to the water bills of customers who
receive service through an extension of water facilities under this section, which is
in lieu of an assessment against the customer for the cost of the extension, then the
Public Service Commission shall allow collection of the surcharge to continue for
the period of years for which the surcharge was established.
Effective: July 15, 1994
History: Amended 1994 Ky. Acts ch. 158, sec. 1, effective July 15, 1994. – Amended
1992 Ky. Acts ch. 388, sec. 2, effective July 14, 1992. -- Created 1988 Ky. Acts
ch. 12, sec. 4, effective July 15, 1988.
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