807 KAR 5:068. Purchased water adjustment for water districts and water associations.
RELATES TO: KRS Chapter 278
STATUTORY AUTHORITY: KRS 278.012, 278.015, 278.030(1), 278.040(3)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 278.030(1) provides that all rates charged by a water utility subject to the jurisdiction of the Public Service Commission shall be fair, just and reasonable. This administrative regulation prescribes the requirements under which a water district or a water association may implement a purchased water adjustment designed to recover the actual costs of water purchased.
Section 1. Water Utility Base Rate. The supplier's base rate in effect immediately prior to the most recent increase shall be considered the base rate.
Section 2. Applications for Change in Base Rate. (1) For purposes of a purchased water adjustment, the supplier's rate as defined in Section 1 of this administrative regulation shall be considered as the base rate for purchased water and any increase or decrease in the base rate shall be considered the changed rate.
(2) In the event there is an increase in the supplier's base rate, the water district or water association shall determine the increased cost of water purchased based on the twelve (12) month period ending within ninety (90) days immediately prior to the effective date of its rate adjustment to its customers. The cost of purchased water shall be calculated at the supplier's base rate and changed rate, as defined in Sections 1 and 2 of this administrative regulation. The difference in costs shall then be divided by the actual number of cubic feet or gallons sold during the same twelve (12) month period, yielding the purchased water adjustment in cents per cubic foot or gallon unit. This adjustment amount shall be added to all the utility's rate schedules on a per unit basis regardless of the customer class.
(3) In the event there is a decrease in the supplier's rate, the purchased water adjustment shall be calculated in the same manner as set out in subsection (2) of this section and its rates reduced accordingly.
(4) In the event a water district or water association receives a refund from its supplier for amounts previously paid, the water district or water association shall immediately apply to the commission for authority to make adjustments on the amounts charged customer's bills under this administrative regulation as follows:
(a) The total refund received by the utility shall be divided by the number of cubic feet or gallons of water the utility estimates it will sell to its customers during the two (2) month period beginning with the first day of the month following receipt of the refund, yielding the refund factor to be applied against each cubic foot or gallon of water sold thereafter.
(b) Effective with meter readings taken on and after the first day of the second month following receipt of the refund, the utility will reduce by the refund factor any purchased water adjustment that would otherwise be applicable during the period. The period of reduced purchased water adjustments shall be adjusted, if necessary, in order to most nearly approximate the total amount to be refunded. The water utility shall make full distribution of the refund within two (2) months.
(c) In the event a water utility receives a large or unusual refund, the utility may apply to the commission for a deviation from the procedure for distribution of refunds specified herein.
Section 3. Filings with the Commission. (1) Within twenty (20) days after any such purchased water rate adjustment, the water district or water association shall file with the commission its revised tariff sheets setting forth the adjusted rates and information concerning the water purchases and sales upon which the adjustment was based sufficient to determine the accurateness of the calculations and application of the purchased water adjustment to its rates. Such tariffs and information shall be in substantially the form set forth in subsection (2) of this section. Copies of these forms may be obtained from the commission upon request.
(2) Form of purchased water adjustment filing.
PURCHASED WATER RATE ADJUSTMENT
Pursuant to KRS 278.012 and 278.015
(Name of Utility):
(Date):
(Business Mailing Address):
(Telephone Number):
1.(a) Names of all wholesale suppliers and the base rate and changed rate of each. In the event the water purchased is billed by the supplier on other than a flat rate schedule, the entire rate schedule must be shown. Attach additional sheets if necessary.
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Supplier(s) |
Base Rate |
Changed Rate |
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(1) |
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(2) |
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(3) |
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(b) A copy of the supplier's notice of the changed rate showing the effective date of the increase is attached as Exhibit _____.
2. Twelve-month period upon which purchased water adjustment is based:
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From: (Month & Year) |
Through: (Month & Year) |
3. Statement of Water Purchases (Where water is purchased from more than one (1) supplier, purchases from each supplier must be shown separately. Where water is purchased from a supplier through more than one (1) meter and bills are computed individually for each meter, purchases should also be shown separately for each meter.)
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Supplier's Name |
Gallons Purchased Meter No. 1 |
Gallons Purchased Meter No. 2 |
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(1) |
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(2) |
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(3) |
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TOTAL |
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4. Total Sales for the twelve (12) Months ______
5. Purchased Water Adjustment Factor _____¢ per gallon or cubic foot.
NOTE: Revised tariff sheets must be attached showing rates to be charged by the utility and the effective date of such increased rates.
Signature of Utility Officer:
Title:
Form for filing Rate Schedules
For: (Community, Town or City)
P.S.C. No.:
_____________________SHEET NO. ____________________
___________________CANCELLING P.S.C. NO. ________
Name of Issuing Corp.
_____________________SHEET NO. ____________________
CLASSIFICATION OF SERVICE
RATE PER UNIT
DATE OF ISSUE ___________ DATE EFFECTIVE _________
ISSUED BY (Name of Office):
TITLE:
Issued by authority of an Order of the Public Service Commission of Kentucky in Case No. _____ dated _________.
Section 4. Orders of the Commission. (1) Within thirty (30) days after the documents required by Section 3 of this administrative regulation are filed, the commission shall enter its order either approving the rates or establishing revised rates.
(2) If the rates contained in the tariff are correct and approved as filed, no further tariff forms will be required to be filed and a stamped copy of the approved tariff sheet(s) shall be returned to the utility for its files. If the rates are incorrect and corrected rates are established by the commission, within thirty (30) days of the date of the commission's order, the utility shall file revised tariff sheet(s) setting out the rates so ordered.
Section 5. Notice to Customers. The water district shall notify its customers of any increase in rates resulting from a supplier increase no later than the rendering of the first bill at the increased rate. (12 Ky.R. 1965; Am. 13 Ky.R. 235; eff. 7-2-86.)