Kentucky Public Service Commission Approves Rate Adjustment for North Shelby Water Company

Strategic Insights -

The Kentucky Public Service Commission has issued an order approving a rate adjustment for North Shelby Water Company, effective July 1, 2024. The approved rates reflect an increase in the cost of purchased water from Louisville Water, Shelbyville, and Frankfort.

The Commission found that North Shelby Water's three-year water loss average is 13.6681 percent, resulting in an approximate cost of $195,120.39 for the company's total water loss. Based on a review of Commission records, North Shelby Water's most recent general base rate adjustment occurred in Case No. 2022-00317, which increased a typical residential customer's monthly bill by $1.04.

Key Takeaways:

  • The rate adjustment is approved to reflect the increased cost of purchased water from Louisville Water, Shelbyville, and Frankfort, effective July 1, 2024.
  • The purchased water adjustment factor is approved at $0.08 per 1,000 gallons, resulting in an increase in the cost of purchased water for North Shelby Water.
  • The approved rates will increase a typical residential customer's monthly bill, using 5,692 gallons, by $1.04 from $48.01 to $49.05.
  • North Shelby Water's three-year water loss average is 13.6681 percent, resulting in an approximate cost of $195,120.39 for the company's total water loss.
  • The Commission recommends North Shelby Water review its financial performance annually and consider filing future rate requests every three to five years depending on inflation and operating performance.
  • The approved rates will be reflected in the company's revised tariff sheets, which must be filed with the Commission within 20 days of the date of service of this Order.

Statistics:

  • North Shelby Water purchases 317,848,000 gallons of water from Louisville Water, 133,662,111 gallons of water from Shelbyville, and 79,326,360 gallons of water from Frankfort annually.
  • The approved purchased water adjustment factor is $0.08 per 1,000 gallons.
  • The increase in the cost of purchased water for North Shelby Water is $36,973.08.
  • The approximate cost of North Shelby Water's total water loss is $195,120.39.
  • The approved rates will increase a typical residential customer's monthly bill by $1.04.

Sources:

  • Electronic purchased water adjustment filing of North Shelby Water Company (Case No. 2024-00165)
  • Order of the Kentucky Public Service Commission in Case No. 2024-00165 (July 3, 2024)
  • Tariff filings of Louisville Water Company and Shelbyville Municipal Water and Sewer Commission
  • Annual Reports of North Shelby Water to the Public Service Commission for the Years Ended December 31, 2023, 2022, and 2021.