2014 Kentucky Revised Statutes CHAPTER 278 - PUBLIC SERVICE COMMISSION 278.023 Approval of federally-funded construction projects -- Commission review of agreement and supporting documents -- Surcharge.
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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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