BY LISA STAYTON
MOUNTAIN CITIZEN
FRANKFORT — The Kentucky Public Service Commission (PSC) continues its persistent monitoring of the Martin County Water District (MCWD). The commission has issued a formal data request requiring the utility to provide a comprehensive set of documents and responses under oath.
This directive, outlined in a June 18 PSC filing signed by Executive Director Linda C. Bridwell, P.E., builds on prior commission orders and ongoing concerns regarding the utility’s compliance with reporting requirements, financial management practices and adherence to regulatory directives.
Among the five specific inquiries, the commission is scrutinizing a $68,000 withdrawal made Jan. 19, as reflected in the January 2024 bank statement. MCWD must explain the purpose of this withdrawal, including details on where it was transferred and the purpose for which the funds were expended.
The commission also flagged MCWD’s noncompliance with a July 22, 2020 order that mandates the submission of quarterly billing and collection data. This order requires the utility to provide a detailed statement of debt service surcharge billing and collections, monthly surcharge bank statements, a breakdown of each payment made from the account, and a schedule of outstanding amounts on past due debts for each vendor receiving payments from the debt service surcharge.
In another inquiry, the PSC demanded an explanation as to why MCWD ceased, in its required monthly reports, to detail the reasons a supply could not be obtained from a source other than Evans Hardware of Inez or why the supply was not kept in inventory. This monthly reporting requirement, established due to MCWD’s prolonged unpaid debt to Evans Hardware, mandates an accounting of all purchases from Evans and a narrative justification for each.
The July 22, 2020 directive stemmed from MCWD accumulating unpaid bills at the Inez hardware store over six years, beginning in 2015 through 2020. The water district charged $30,200 on one account and $18,820 on another, leading to an interest accrual issue.
The PSC ordered the district to negotiate the interest with Evans and file the monthly reports. Evans Hardware voluntarily waived the interest charges but has not yet been paid for carrying the utility through its financially challenging years.
The district employs an attorney to meet the monthly reporting requirements.
Among past-due vendor debt that totaled over $1 million, the commission noted the same interest accrual issue with another vendor. However, it did not require monthly explanations as to why MCWD would purchase supplies in Martin County rather than somewhere else, such as Lowe’s in Johnson County.
The PSC’s fourth request for data is for monthly water loss reports for the first half of 2024.
The fifth inquiry pertains to a potential rate adjustment for customers: “Confirm Martin District intends to file for a rate adjustment within the 2024 calendar year. If not confirmed, then provide a timeline for the next rate filing.”
In MCWD’s monthly meeting June 25, the board did not address the data request. Chairman Jimmy Don Kerr stated that he spoke the previous day to the district’s attorney, Brian Cumbo of Inez, who did not attend the meeting.
“I guess I’ll speak for him: No issues that we’re aware of,” Kerr said.
According to PSC records, the data request was sent to all parties, including the water board, Cumbo and attorney Mary Cromer, who represents Martin County Concerned Citizens as an intervenor in the case.
The water district has until July 15 to comply with the data request.