Powell's Valley Water District Truck Purchase for Leak Detection

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

O R D E R On February 9, 2026, Powell’s Valley Water District (Powell’s Valley District) submitted a quote for a new truck intended to be utilized by its new hire for water leak detection seeking approval to complete the purchase with water loss surcharge funds. 1

For the reasons outlined below, Powell’s Valley District’s request to expend surcharge

funds to purchase a new truck is granted. BACKGROUND INFORMATION By Order issued December 9, 2024, in Case No. 2023-00387, the Commission approved an unaccounted-for water loss reduction surcharge for Powell’s Valley District

and ordered Powell’s Valley District to file a qualified infrastructure improvement plan

(QIIP) with the Commission. The Commission opened this proceeding to monitor 2

Powell’s Valley District’s surcharge billings, collection, deposits, and expenditures.

Bid for New Truck (filed Feb. 9, 2026) (The Commission notes that this bid was filed into the 1record but did not include a corresponding motion. Commission Staff issued a request for information to confirm that the bid was a request to use surcharge funds on February 18, 2026). Case No. 2023-00387, Electronic Application of Powell’s Valley Water District for a Rate 2Adjustment Pursuant to 807 KAR 5:076 (Ky. PSC Dec. 9, 2024). ELECTRONIC POWELL’S VALLEY WATER )

DISTRICT UNACCOUNTED-FOR WATER LOSS ) CASE NO. REDUCTION PLAN, SURCHARGE AND ) 2024-00314 MONITORING )

On March 31, 2025, Powell’s Valley District filed a proposed QIIP. The QIIP 3 included the following actions over the next four years: 4 Year 1 (total expenditures: $67,204)

• Purchase and install 10 bypass meters for a total of $18,870
• Purchase and install 3 isolation valves for a total of $6,936

• Purchase a new truck for a total of $41,398
  Year 2 (total expenditures: $66,486)

• Hire new employee for $40,716

• Purchase and install 10 bypass meters for a total of $18,870

• Purchase digital leak detector for $6,900
  Year 3 (total expenditures: $69,618)

• New employee salary $40,716

• Purchase and install 10 bypass meters for a total of $18,870

• Purchase and install 4 isolation valves for a total of $10,032
  Year 4 (total expenditures: $66,216)

• New employee salary $40,716

• Purchase a Subsurface Dual Leak Correlator for $25,500
  DISCUSSION AND FINDINGS Powell’s Valley District requested to expend surcharge funds to purchase a new truck intended to be used its new employee, and submitted a quote for the 2026 5 Chevrolet Silverado totaling $42,125. Powell’s Valley District stated the new employee’s 6 start date was February 25, 2026. In its QIIP, Powell’s Valley District explained that 7

Powell’s Valley District’s QIIP (filed Mar. 31, 2025). 3 Powell’s Valley District’s Response to Commission Staff’s First Request for Information (Staff’s 4First Request) (filed May 21, 2025), Item 4(b). Powell’s Valley District’s Response to Commission Staff’s Third Request for Information (Staff’s 5Third Request) (filed Feb. 19, 2026), Item 1. Powell’s Valley District’s Response to Staff’s Third Request, Attachment. 6 Powell’s Valley District’s Response to Staff’s Third Request, Item 2. 7

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hiring a new employee and paying 75 percent of their salary with water loss surcharge funds would reduce unaccounted-for water loss as the new employee would dedicate 75 percent of their time to the reduction of water loss and the district’s current employees dos not have the allotted time it takes for leak detection and repairs. Additionally, 8

Powell’s Valley District stated that in order for that employee to help perform tasks, it

would require a new truck for transportation and storage of the leak detection equipment. 9 Based on the evidence in the record, the Commission finds that Powell’s Valley

District’s request to purchase a new truck, in the amount of $42,125, should be granted

as it will primarily be used to help reduce unaccounted-for water loss, and Powell’s Valley District has the funds in the water loss surcharge account to reimburse for these costs. 10

The Commission notes that Powell’s Valley District did not make a request for

reimbursement for the employee’s salary at this time; however, when the time comes for

Powell’s Valley District to do so, it should include details as to how the district plans to

pay the employee once the surcharge funds are exhausted. IT IS THEREFORE ORDERED that:

1. Powell’s Valley District request to purchase a new truck, in the amount of
   $42,125, is granted.

2. Powell’s Valley District shall file proof of these expenditures from the water
   loss surcharge account with its monthly activity report that follows the expenditures.

QIIP at unnumbered PDF page 7. 8 QIIP at unnumbered PDF page 6. 9 As of the January Monthly Bank Statement Filing, Powell’s Valley District had water loss 10surcharge account balance of $48,999.12. See January 2026 Bank Statement (filed Feb. 12, 2026).

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PUBLIC SERVICE COMMISSION ___________________________ Chairman ___________________________ Commissioner ___________________________ Commissioner

ATTEST:

______________________ Executive Director

Case No. 2024-00314

Service List for 2024-00314

• Powell's Valley Water District 31 Adams Ridge Road P. O. Box 550 Clay City, KY 40312
• Ashley Hood Chairman Powell's Valley Water District 31 Adams Ridge Road P. O. Box 550 Clay City, KY 40312
• Kendell Knox Manager Powell's Valley Water District 31 Adams Ridge Road P. O. Box 550 Clay City, KY 40312
• Denotes served by Email