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Waters rate hike won’t be as high as was first thought

Water rates to be cut some

Letcher County water customers will get a break on their rates in the form of a small decrease in the water rates announced in February by the Board of Directors of the Letcher County Water and Sewer District.

The rates will be changed by the Kentucky Public Service Commis- sion to reflect a mistake made when the commission calculated the rate that was announced at the district’s February meeting. The rate will be lowered slightly, from $28.88 for the first 2,000 gallons (the minimum bill for households) to $28.08, for a savings of 80 cents per month.

Other rates will be decreased slightly as well, with all water used over 2,000 gallons dropping from $7.89 per 1,000 to $7.79. The bulk rate for the City of Neon (when it purchases water from the district) will be set at $3.89 per 1,000 gallons, and the leak adjustment rate will be $4.72 per 1,000 gallons. The Board held a special called meeting yesterday (Tuesday), so the adjusted rates could be presented to the Public Service Commission this week.

The board took its action because the purchased water adjustment factor that was used to set the original rate was based on an incorrect amount of water sold by the Letcher County Water and Sewer District in 2019. The adjustment was based on the district selling 134,172,700 gallons for the calendar year of 2019. The actual figure was 182,461,000 gallons. The use of the incorrect water sales figure resulted in rates that did not accurately reflect the effect of the increase in the Knott County Water and Sewer District’s wholesale water rate.

The lower rates will go into effect when they are approved by the Public Service Commission. Gerald E. Wuetcher, of Stoll, Keenon, and Ogden PLLS of Lexington and Louisville, who represents the Letcher County Water and Sewer District, was scheduled to deliver the rates to the PSC this week.

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