BY ROGER SMITH
MOUNTAIN CITIZEN
FRANKFORT — The Kentucky Public Service Commission has opened a formal investigation into the Martin County Water District, five current or former commissioners and an Alliance Water Resources manager over allegations the utility entered into a truck lease without first obtaining state approval required by law.
In a March 31 order, the PSC established Case No. 2026-00065 to examine whether the district and its officials violated KRS 278.300, which requires commission approval before a utility issues debt or assumes certain financial obligations.
Named in the case were the Martin County Water District; commissioners Timothy Thoma, Vernon Robinson, John Hensley, Colby Kirk, Nina McCoy and Greg Crum; and Alliance Water Resources manager Todd Adams.
The PSC said the record established a prima facie case that the district and the individuals named may have “willfully aided and abetted in one or more violations” of the statute.
The case centers on the district’s five-year lease for five service trucks, approved by the board in May 2025. According to the PSC, the lease requires monthly payments of $4,690.43 over 60 months, beginning July 20, 2025, and ending June 30, 2030.
The district later sought retroactive approval of the lease in a separate case, saying it failed to obtain prior approval because its attorney [Brian Cumbo of Inez] forgot that approval was necessary.
In an Oct. 2, 2025, order, however, the PSC rejected that request, finding the district had not met the legal standard because the law requires approval before a utility incurs the debt, not afterward.
The commission also said at that time that responsibility for compliance rested with the district and its board, not its counsel.
Under KRS 278.990, the PSC may assess civil penalties of up to $2,500 per offense against a utility and against any officer, agent or employee found to have willfully violated statutes, regulations or PSC orders.
The March 31 order required the district and each individually named board member and manager to file written responses within 20 days of service. The PSC also ordered attorneys for each party to enter appearances within that same period.
On April 7, the water district, through counsel, moved for an in-person informal conference in Frankfort before any further written responses were due. The district said such a meeting would allow the commission to better understand its position and its efforts to manage water service in Martin County.
In that filing, the district said Adams is no longer manager for Alliance Water Resources and that Erica Bogenpohl, a professional engineer with Alliance, is temporarily filling the role. The district also said Crum was not a board member at the time of the truck lease discussions and is not currently serving on the board.
The district asked the PSC to treat the requested conference as satisfying the written-response requirement and to hold any additional response deadlines in abeyance pending the meeting.
In an order issued Tuesday, April 14, the PSC granted the request for an informal conference but denied the district’s request to substitute that conference for the required written responses.
The commission scheduled the in-person conference for 2 p.m. April 20 at the PSC offices, 211 Sower Blvd., in Frankfort.
On its own motion, the PSC also granted a 20-day extension, giving the district, its board members and the Alliance manager until May 11 to file written responses.
Crum was dismissed as a party to the case.