Hyden-Leslie Water District Surcharge Compliance Order

COMMONWEALTH OF KENTUCKY BEFORE THE PUBLIC SERVICE COMMISSION In the Matter of:

O R D E R On February 25, 2026, Hyden-Leslie Water District (Hyden-Leslie District) filed a notice of exhaustion of surcharge proceeds and motion to close and remove proceedings from active docket and for relief from reporting requirements (Motion) in both this matter as well as Case No. 2020-00141. 1 BACKGROUND The Commission initiated this case on November 6, 2020, to monitor Hyden-Leslie

District’s water loss surcharge granted in Case No. 2020-00141, and the progress of its 2 water loss reduction efforts. The November 6, 2020 Order in Case No. 2020-00141 established that Hyden-Leslie District was to collect a monthly water loss surcharge of $1.53 per meter for 48 months or until $263,124 had been assessed, which ever occurred first. The November 6, 2020 Order established several reporting requirements, including 3 the submission of a comprehensive unaccounted-for water loss reduction plan, monthly

Case No. 2020-00141, Electronic Application of Hyden-Leslie Couty Water District for an 1Alternative Rate Adjustment (Ky. PSC Nov. 6, 2020). Case No. 2020-00141, Nov. 6, 2020 Order. 2 Case No. 2020-00141, Nov. 6, 2020 Order at 12. 3ELECTRONIC HYDEN-LESLIE WATER )

DISTRICT’S UNACCOUNTED-FOR WATER LOSS ) CASE NO. REDUCTION PLAN, SURCHARGE AND ) 2020-00340 MONITORING )

water loss reports, and a monthly activity report that included “a statement of monthly

surcharge billings and collections; a monthly surcharge bank statement; a list of each payment from the account, its payee, and a description of the purpose; and invoices

supporting each payment.” The November 6, 2020 Order further required that Hyden- 4 Leslie District seek prior approval from the Commission prior to spending any funds from the water surcharge account. On the same date, the Commission established Case No. 5 2020-00340 to monitor the assessment, collection and expenditure of surcharge funds. In its Order establishing this proceeding, the Commission ordered the same reporting requirements as had been set forth in the Order in Case No. 2020-00141. 6 DISCUSSION In its Motion, Hyden-Leslie District stated it has timely complied with all reporting requirements set forth in the November 6, 2020 Orders in both proceedings, with Hyden-

Leslie District’s most recent monthly activity report filed on February 13, 2026. Hyden- 7 Leslie further stated it advised the Commission on November 7, 2024, that, pursuant to the terms of the November 6, 2020 Order, Hyden-Leslie District discontinued collection of the surcharge beginning on bills issued in December 2024 as the authorized period for collection of the surcharge had run. 8

Case No. 2020-00141, Nov. 6, 2020 Order, ordering paragraph 5. 4 Case No. 2020-00141, Nov. 6, 2020 Order, ordering paragraph 5. 5 Order (Ky. PSC Nov. 6, 2020), ordering paragraph 1, 3, 4. 6 Surcharge Report March 2026 (filed Nov. 7, 2024). 7 Notice of Discontinuation of Surcharge Billing (filed Nov. 7, 2024). 8

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By Order issued January 30, 2025, the Commission authorized Hyden-Leslie District to expend the full balance of its surcharge account funds for the purchase of a portable flow meter and 764 meters and related meter accessories and services. 9 In its Motion, Hyden-Leslie asserted that it advised the Commission in its monthly activity report filed January 14, 2026, that the authorized expenditures had been made, and all funds in the surcharge account had been exhausted. Hyden-Leslie argued in its 10 Motion, that, with the surcharge having ended and all surcharge proceeds having been expended for authorized purposes, no reason exists for this proceeding to remain on the

Commission’s active docket. Hyden-Leslie District accordingly requested that the 11

Commission close this proceeding and remove it from the Commission’s active docket

and relieve Hyden-Leslie District of further compliance with the reporting requirements set forth in the November 6, 2020 Orders. 12 The Commission finds that Hyden-Leslie’s Motion should be granted. Hyden- Leslie District has met its reporting requirements, has now fully exhausted the surcharge funds towards Commission approved expenditures, and should be released from the reporting requirements that were established in Case No. 2020-00141 and ordered as part of the monitoring requirements in Case No. 2020-00340. Case No. 2020-00141 was previously closed and removed from the docket on November 6, 2020. The 13

Order (Ky. PSC Jan. 30, 2025). 9 Motion at 2. 10 Motion at 3. 11 Motion at 3. 12 Case No. 2020-00141, Nov. 6, 2020 Order. 13

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Commission further finds that Case No. 2020-00340 should be closed and removed from the docket. IT IS THEREFORE ORDERED that:

1. Hyden-Leslie District’s Motion is granted. Hyden-Leslie District is released
   from the reporting requirements established by Orders issued November 6, 2020, in both Case No. 2020-00141 and Case No. 2020-00340.

2. Case No. 2020-00340 is hereby closed and removed from the docket.

3. A copy of this Order shall be filed in the post-case file for Case No. 2020-
   00141.

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PUBLIC SERVICE COMMISSION ___________________________ Chairman ___________________________ Commissioner ___________________________ Commissioner

ATTEST:

______________________ Executive Director

Case No. 2020-00340

*Gerald E Wuetcher Attorney at Law STOLL KEENON OGDEN PLLC 300 West Vine Street Suite 2100 Lexington, KY 40507-1801

*Hyden-Leslie County Water District 356 Wendover Road Hyden, KY 41749

*L.J. Turner Hyden-Leslie County Water District 356 Wendover Road Hyden, KY 41749

*Denotes Served by Email Service List for Case 2020-00340