Oldham County Water District Rate Adjustment Order Reversed

orders

Published March 31st, 2026

Detected March 17th, 2026

Summary

The Kentucky Public Service Commission has accepted a revised tariff for the Oldham County Water District, implementing a court order to include $125,241 in employee health and dental insurance expenses in the district's revenue requirement. The new rates are effective March 31, 2026.

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What changed

The Kentucky Public Service Commission (PSC) has issued an order accepting a revised tariff filing from the Oldham County Water District (Oldham District). This action follows a Franklin Circuit Court order that reversed the PSC's prior decision to exclude $125,241 in employee health and dental insurance expenses from Oldham District's revenue requirement. The court's decision, which became final on November 14, 2025, mandated the inclusion of these expenses.

Oldham District filed a revised tariff on February 26, 2026, designed to recover the disputed $125,241. The PSC has accepted this filing, and the new rates will become effective on March 31, 2026. This order effectively amends the PSC's June 18, 2024, order to align with the court's ruling, and the case is now closed. Regulated entities, particularly water districts undergoing rate adjustments, should note the impact of judicial review on regulatory decisions and ensure compliance with court-mandated changes.

What to do next

Ensure Oldham County Water District's billing systems reflect the new rates effective March 31, 2026.
Review internal processes for handling disputed expense inclusions in revenue requirements, considering potential litigation impacts.
Update financial records to account for the $125,241 in employee health and dental insurance expenses.

Source document (simplified)

COMMONWEALTH OF KENTUCKY BEFORE THE PUBLIC SERVICE COMMISSION In the Matter of: ELECTRONIC APPLICATION OF OLDHAM COUNTY WATER DISTRICT FOR AN ALTERNATIVE RATE ADJUSTMENT ) ) ) CASE NO. 2023-00252 O R D E R On June 18, 2024, the Commission issued an Order in this matter setting water service rates for Oldham County Water District (Oldham District) in an alternative rate filing adjustment pursuant to 807 KAR 5:076. In that Order, the Commission reduced $125,241 in employee health and dental insurance expense from Oldham District’s revenue requirement. Oldham District appealed that decision to Franklin Circuit Court and on September 24, 2025, the Franklin Circuit Court entered an Opinion and Order reversing the Commission’s June 18, 2024 Order to the extent it excluded $125,241 from Oldham District’s revenue requirement. On October 15, 2025, the Court amended its Order to clarify that the disputed amount was to be included in Oldham District’s revenue requirement. The Court’s decision became final on November 14, 2025. Final Order (Ky. PSC, June 18, 2024). Final Order at 14-15. Oldham County Water District v. Public Serv. Comm’n, Franklin Circuit Ct., Div. I, Civil Action No. 24-CI-00725 (Sept. 24, 2025). Oldham County Water District v. Public Serv. Comm’n, Franklin Circuit Ct., Div. I, Civil Action No. 24-CI-00725 (Oct. 15, 2025).

-2- Case No. 2023-00252 On January 16, 2026, Oldham District filed a motion for informal conference requesting guidance regarding implementation of the Court’s Order. An informal conference was subsequently held with Commission Staff, and a memo was filed in the record. On February 26, 2026, Oldham District filed a revised tariff sheet setting forth rates designed to recover the $125,241 expense for employee health and dental insurance that the Franklin Circuit Court determined should be included in Oldham District’s revenue requirement. The Commission finds that Oldham District’s February 26, 2026 tariff filing reflects rates calculated to include the $125,241 in its revenue requirement consistent with the Franklin Circuit Court’s Opinion and Order. Accordingly, the Commission finds that acceptance of Oldham District’s revised tariff filing with the effective date of March 31, 2026, is appropriate to implement the Franklin Circuit Court’s Order. IT IS THEREFORE ORDERED that: 1. Oldham County Water District’s revised tariff sheet filed February 26, 2026, is accepted. Oldham District’s Motion for Informal Conference (filed Jan. 16, 2026). PSC Notice of Filing of Informal Conference Memorandum and Attendance List (filed Mar. 2, 2026). TFS2026-00070, Oldham County Water District’s Tariff filing in conformity with Order of Franklin Circuit Court related to Case No. 2023-00252 (ARF) (Tariff Filing) (filed Feb. 26, 2026). TFS2026-00070, Tariff Filing at OldhamCWDTariffARFCase2023-252SupportCalculations.xlsx.

-3- Case No. 2023-00252 2. The approved rates shall become effective March 31, 2026, as reflected in the revised tariff sheet. 3. All other provisions of the Commission’s June 18, 2024 Order not inconsistent with the Franklin Circuit Court’s Opinion and Order shall remain in full force and effect. 4. This case is closed and removed from the Commission’s docket. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Case No. 2023-00252 PUBLIC SERVICE COMMISSION ___________________________ Chairman ___________________________ Commissioner ___________________________ Commissioner ATTEST: ______________________ Executive Director

Denotes Served by Email Service List for Case 2023-00252Cameron F. MyersSTOLL KEENON OGDEN PLLC300 West Vine StreetSuite 2100Lexington, KY 40507-1801Honorable Damon R TalleyAttorney at LawSTOLL KEENON OGDEN PLLC300 West Vine StreetSuite 2100Lexington, KY 40507-1801Lacey CunninghamOldham County Water DistrictP.O. Box 512160 Spencer CourtBuckner, KY 40010Oldham County Water DistrictP.O. Box 512160 Spencer CourtBuckner, KY 40010Russell D. RoseOldham County Water DistrictP.O. Box 512160 Spencer CourtBuckner, KY 40010*Tina C. FrederickSTOLL KEENON OGDEN PLLC300 West Vine StreetSuite 2100Lexington, KY 40507-1801