807 KAR 5:069. Filing requirements and procedures for federally-funded construction project of a water association, commission, or district or a combined water, gas or sewer district.

807 KAR 5:069. Filing requirements and procedures for federally-funded construction project of a water association, commission, or district or a combined water, gas or sewer district.

RELATES TO: KRS 278.020(1), 278.023, 278.190, 278.300

STATUTORY AUTHORITY: KRS 278.020(1), 278.023, 278.040(3), 278.190, 278.300

NECESSITY, FUNCTION, AND CONFORMITY: KRS 278.040(3) provides that the commission may promulgate reasonable administrative regulations to implement the provisions of KRS Chapter 278. KRS 278.020(1) authorizes the commission to issue a certificate of public convenience and necessity for utility construction. KRS 278.300 authorizes the commission to approve the assumption of an obligation, liability, or evidence of indebtedness by a utility. KRS 278.190 authorizes the commission to approve proposed changes in rates. KRS 278.023 provides that the commission shall review, recommend modifications to, and issue orders necessary to implement an agreement regarding a federally-funded construction project, including those portions of the agreement relating to financing, construction, and rates. KRS 278.023(2) provides that the commission shall prescribe by administrative regulation the specific documents required to be filed for commission review of a construction project financed in whole or in part under the terms of an agreement with the U.S. Department of Agriculture or the U.S. Department of Housing and Urban Development and to be undertaken by a water association, commission or district or a combined water, gas, or sewer district formed under KRS Chapter 74 or 273. This administrative regulation prescribes filing requirements and procedures a water association, commission, or district, or a combined water, gas or sewer districted formed under KRS Chapter 74 or 273 shall follow when seeking commission approval of a construction project financed in whole or in part under the terms of an agreement with the U.S. Department of Agriculture or the U.S. Department of Housing and Urban Development.

Section 1. Filing Requirements. A utility proposing to construct a project financed in whole or in part by the U.S. Department of Agriculture or the U.S. Department of Housing and Urban Development shall file with the commission the following documents and information:

(1) All documents and information required by 807 KAR 5:001, Section 14;

(2) A copy of the documents from the U.S. Department of Agriculture or U.S. Department of Housing and Urban Development, as appropriate, stating approval of the project and including all terms and conditions to be met;

(3) A copy of the letter of concurrence in bid award;

(4) A copy of the preliminary and final engineering reports;

(5) A certified statement from an authorized utility official confirming:

(a) That the proposed plans and specifications for the project have been designed to meet the minimum construction and operating requirements established in 807 KAR 5:066, Section 4(3) and (4), Section 5(1), Sections 6 and 7, Section 8(1) through (3), Section 9(1) and Section 10;

(b) That all other state approvals or permits have been obtained;

(c) That the proposed rates, if any, shall produce the total revenue requirements set out in the engineering reports; and

(d) The dates upon which construction will begin and end;

(6) If applicable, a statement that notice meeting the requirements of Section 2 of this administrative regulation has been given, together with a copy of the notice; and

(7) If applicable, a motion requesting approval to deviate from a minimum construction standard or operating condition required by subsection (5)(a) of this section, together with supporting evidence to identify and explain the reasons that the minimum requirements cannot be met.

Section 2. Notice to Customers of Rate Change. If a change in rates is required to finance the construction project, the utility shall, before application is made, mail to each customer, or publish in a newspaper of general circulation in the local service area, a notice that contains the current and proposed rates and a brief description of the construction project.

Section 3. Additional Construction Activity. If surplus project funds remain after the approved construction has been completed, the utility may construct an additional plant facility without prior commission approval if no change in existing rates will result. The utility shall notify the commission in writing of additional construction proposed under this section, and shall attach to the notice a statement of the federal lending agency authorizing the utility to use the remaining project funds in the manner proposed.

Section 4. System Maps and Records. Within thirty (30) days after completion of construction authorized under this administrative regulation, the utility shall revise its system maps and records maintained pursuant to 807 KAR 5:006, Section 23, to include all required information regarding the new construction. (15 Ky.R. 900; eff. 11-4-1988; Am. 24 Ky.R. 1774; 2122; eff. 4-13-1998; TAm 1-30-2013.)