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Kentucky Public Service Commission Approves Transfer of Wastewater Treatment Facility

Strategic Insights

— 1 min read

The Kentucky Public Service Commission has issued an order approving the transfer of a wastewater treatment facility from Magruder Village Water Company to Bluegrass Water Utility Operating Company, LLC. The transfer was approved subject to certain conditions, including the assignment of the Agreement from CSWR to Bluegrass Water and the execution of an Agreed Order requiring Bluegrass Water to file a Corrective Action Plan with the Division of Water. The transfer was deemed necessary due to the numerous effluent exceedances experienced by the current owner, Magruder Village Water, which has been cited with 190 effluent exceedances since January 2013.

Key Takeaways:

  • The transfer of the wastewater treatment facility from Magruder Village Water to Bluegrass Water Utility Operating Company, LLC was approved by the Kentucky Public Service Commission.
  • The transfer was deemed necessary due to the numerous effluent exceedances experienced by the current owner, Magruder Village Water, which has been cited with 190 effluent exceedances since January 2013.
  • Bluegrass Water has hired an engineering firm to inspect the facility and make improvement recommendations intended as the basis for a Corrective Action Plan to be submitted to the Division of Water.
  • The Commission conditionally approved the transfer subject to the assignment of the Agreement from CSWR to Bluegrass Water and the execution of an Agreed Order requiring Bluegrass Water to file a Corrective Action Plan with the Division of Water.
  • Bluegrass Water plans to upgrade the Magruder Village wastewater facility to correct effluent exceedances and improve service to customers.
  • The nearest municipal sewer system connection is approximately five miles away in Paducah, and the cost of connecting to this system would be significantly more costly than the amount Bluegrass Water intends to spend upgrading the Magruder Village wastewater facility.

Statistics:

  • The current owner, Magruder Village Water, has been cited with 190 effluent exceedances since January 2013.
  • Bluegrass Water currently operates several wastewater treatment facilities in Kentucky and serves 3,599 customers.
  • The nearest municipal sewer system connection is approximately five miles away in Paducah.

Sources:

  • Case No. 2023-00218, Order (Kentucky Public Service Commission, October 20, 2023)
  • Case No. 2020-00028, Order (Kentucky Public Service Commission, June 19, 2020)
  • Case No. 2020-00297, Order (Kentucky Public Service Commission, January 14, 2021)
  • Case No. 2019-00104, Order (Kentucky Public Service Commission, August 14, 2019)
  • KRS 278.010(3)
  • KRS 278.020(6) and (7)

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