Southern Water District Rate Violation Investigation

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

O R D E R On August 15, 2025, the Commission established this proceeding to investigate Southern Water & Sewer District (Southern District) and its individual commissioners, Bob Shepherd, Donnie Daniels, Rick Roberts, Steve Dawson, and Leslie Byron Scott (collectively, Parties), for the alleged assessment of an unapproved rate in violation of KRS 278.160. The Parties filed responses to the Commission's opening Order on September 1, 2025, and September 2, 2025. Southern District filed responses to 1

Commission Staff's First Request for Information (Staff's First Request) on October 14,

1. The Commission, on its own motion, finds that a procedural schedule should be 2 established for the orderly processing of this case. The procedural schedule is attached as an Appendix to this Order and is incorporated herein.

Southern District's Response to Order (filed Sept. 1, 2025); Bob Shepherd Response (filed Sept. 1 1, 2025); Steve Dawson Response (filed Sept. 1, 2025); Leslie Byron Response (filed Sept. 1, 2025); Rick Roberts Response (filed Sept. 1, 2025); Donnie Daniels Response (filed Sept. 2, 2025); Randy Conley Response (filed Sept. 2, 2025). ELECTRONIC INVESTIGATION INTO )

SOUTHERN WATER & SEWER DISTRICT AND ) Southern District's Response to Commission Staff's First Request for Information (filed Oct. 14, 2ITS INDIVIDUAL COMMISSIONERS (BOB ) CASE NO. 2025). SHEPHERD, DONNIE DANIELS, RICK ) 2025-00233 ROBERTS, STEVE DAWSON, AND LESLIE ) BYRON SCOTT) FOR ALLEGED ASSESSMENT ) OF AN UNAPPROVED RATE )

IT IS THEREFORE ORDERED that:

1. The procedural schedule set forth in the Appendix to this Order shall be
   followed.

2. Any party filing a paper with the Commission shall file an electronic copy in
   accordance with the electronic filing procedures set forth in 807 KAR 5:001, Section 8. Electronic documents shall be in portable document format (PDF), shall be searchable, and shall be appropriately bookmarked. The Commission directs the parties to the

Commission's July 22, 2021 Order in Case No. 2020-00085 regarding filings with the 3 Commission.

1. Southern District shall give notice of any scheduled hearing in accordance with the provisions set forth in 807 KAR 5:001, Section 9(2). In addition, the notice of

hearing shall include the following statement: "This hearing will be streamed live and may

be viewed on the PSC website, psc.ky.gov"; and "Public comments may be made at the beginning of the hearing. Those wishing to make oral public comments may do so by

following the instructions listing on the PSC website, psc.ky.gov." At the time publication

is requested, Southern District shall forward a duplicate of the notice and request to the Commission.

1. At any public hearing in this matter, neither opening statements nor summarization of direct testimonies shall be permitted.

Case No. 2020-00085, Electronic Emergency Docket Related to the Novel Coronavirus COVID-3

19 (Ky. PSC July 22, 2021), Order (in which the Commission ordered that for case filings made on and after

March 16, 2020, filers are NOT required to file the original physical copies of the filings required by 807 KAR 5:001, Section 8).

-2- Case No. 2025-00233

1. Any hearing scheduled in this matter shall be held on the designated day or
   days and continued until called from the bench by the presiding officer. Pursuant to 807 KAR 5:001, Section 2, if the hearing is not concluded on the designated day, the hearing shall be continued upon verbal announcement by the presiding officer. A verbal announcement made by the presiding officer shall be proper notice of the continued hearing.

2. Witnesses who sponsor schedules, testimony, or responses to data
   requests shall participate in person at any hearing scheduled in this matter.

3. Pursuant to KRS 278.360 and 807 KAR 5:001, Section 9(9), a digital video
   recording shall be made of the hearing.

4. The Commission does not look favorably upon motions for continuance.
   Accordingly, motions for extensions of time with respect to the schedule herein shall be made in writing and will be granted only upon a showing of good cause.

5. The Commission does not look favorably upon motions to excuse witnesses
   from testifying at Commission hearings. Accordingly, motions to excuse a witness from testifying at a Commission hearing or from testifying in person at a Commission hearing shall be made in writing and will be granted only upon a showing of good cause.

6. Nothing contained herein shall prevent the Commission from entering
   further Orders in this matter.

-3- Case No. 2025-00233

Entered on this 21st day of April, 2026. PUBLIC SERVICE COMMISSION

___________________________ Angie Hatton Chair

___________________________ Mary Pat Regan Commissioner

___________________________ Andrew W. Wood Commissioner

ATTEST:

______________________ Linda C. Bridwell, PE Executive Director

Case No. 2025-00233

APPENDIX APPENDIX TO AN ORDER OF THE KENTUCKY PUBLIC SERVICE COMMISSION IN CASE NO. 2025-00233 DATED APR 21 2026

Last day for parties to request a public hearing or submit a

request for the matter to be decided based upon the written record ................ 05/15/2026

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Service List for 2025-00233

• Ariel Baker Kentucky Rural Water Association Post Office Box 1424 1151 Old Porter Pike Bowling Green, KY 42102-1424

• Robert K. Miller
  Straightline Kentucky LLC 113 North Birchwood Ave. Louisville, KY 40206

• Southern Water & Sewer District 245 Kentucky Route 680 P. O. Box 610 McDowell, KY 41647

• Randy Conley UMG Project Manager Southern Water & Sewer District 245 Kentucky Route 680 P. O. Box 610 McDowell, KY 41647

• Steven P. Bailey Attorney Bailey Law Office, P.S.C. 181 East Court Street Prestonsburg, KY 41653

• Denotes served by Email