BY ROGER SMITH
MOUNTAIN CITIZEN
INEZ — Martin County Water Board members said they had never discussed a 24.31 percent rate increase, even though a document filed at the Kentucky Public Service Commission by the board’s attorney agreed with that amount.
The document, filed Aug. 25, 2021 by water district attorney Brian Cumbo and signed by Alliance local manager Craig Miller, was a formal response to the PSC staff report Aug. 11, 2021 recommending the 24.31 percent increase.
Board members in a Feb. 12 meeting denied voting for or discussing 24.31 percent.
“You all sent your response to the PSC, and it says ‘In light of the bulleted items above and no material issue with the PSC Staff Report,’ which I think was 24 percent, ‘…pending District Board approval and PSC approval, the District staff concurs with the permanent rate adjustment recommended by the PSC staff,’” Martin County Concerned Citizens chairperson Nina McCoy told the board.
“Did the board vote on it?” McCoy asked.
Board members said they voted on a 12 percent increase.
“And then the PSC said, ‘No, 24 [percent],’” said McCoy. “And you responded with ‘pending the district board approval and the PSC approval, the district staff concurs with the 24 percent.’”
“No. I think that you’re mistaken,” Miller told McCoy, adding that he “had no idea” that the 24.31 percent rate increase was coming.
“That came out of nowhere,” Miller said.
“It didn’t come out of nowhere,” said McCoy. “They had told you in their report.”
Board members Greg Crum and BJ Slone both stated that the only rate the board voted for was the 12 percent increase.
“That was the one time,” Crum said. “And that was under a lot of consideration. . . . Just so that everyone knows that 24 percent was not my idea, not BJ’s idea, not Jimmy Don’s, not anyone else on this board. That was the PSC.”
Slone said he did not know about the 24.31 percent increase until the PSC order of Feb. 8.
Miller said the response that he and Cumbo filed was to the 12 percent interim emergency rate increase granted July 9, 2021 — a month and a half earlier.
McCoy reminded Miller that the response says “the district staff concurs with the permanent rate adjustment recommended by the PSC,” not the interim emergency rate.
“That could be a verbiage thing,” board chairperson Jimmy Kerr said. “They hadn’t even recommended the rate increase then.”
Miller said he would like to see where the PSC recommended the 24.31 percent.
“I never saw it,” stated Miller.
“I know that in the meetings, they would tell us, ‘Well, you need more money,’” said Kerr. “And we were saying, ‘Yeah, but.’”
“‘But we don’t want it,’” added Miller.
“Yeah, ‘but we don’t want it,’” said Kerr.
McCoy said she would look up the documents and send them to the board.
“We hadn’t talked about the 24 percent in here before tonight because it just came out,” said Kerr.
The document filed by the board attorney indicates a copy was sent to Kerr on the date it was filed. The PSC staff report gave the parties (Martin County Water District and Martin County Concerned Citizens) 14 days from Aug. 11, 2021, to respond in writing.
In a Sept. 24, 2021 PSC hearing in Frankfort, Mary Cromer, attorney for Martin County Concerned Citizens, questioned Kerr about the district concurring with the higher rate.
“On Aug. 5, the Commission entered an order in this matter, and it required the district to respond to the staff report,” Cromer began. “As you know, they recommended an additional 12 percent increase. Then the district, in its response, said that they were giving a staff response, which was signed by Craig [Miller], that said they did not dispute the staff report. But my question is, was there a formal board approval of that concurrence with the staff report?”
“No,” answered Kerr. “Basically, the Alliance staff concurs that that makes sense. The board has not approved that.”
At the same time that MCWD concurred with the 24.31 percent increase, Martin County Concerned Citizens objected and asked the PSC to approve special rates and waive surcharges for low-income customers.
“Those surcharges increase the current minimum bill by nearly 20 percent,” Cromer states in MCCC’s response.
Cromer also states the monthly debt service surcharge is not being used as intended:
“The surcharges were not to be used for operation and maintenance expenses. Yet, for the most part, since Alliance began its service, the debt service surcharge has been used solely to pay the company and has not been used to service debts incurred before April 1, 2018, as was ordered. . . . Increasing bills for low-income customers by tacking on surcharges that are not even being used as intended should not be allowed.”
Effective April 1, the minimum monthly water bill, including $7.35 surcharges, will increase from $44.67 to $48.77 for 2,000 gallons. The cost per 1,000 gallons over the minimum 2,000 increases from $9.36 to $10.49. Customers using 4,000 gallons a month will see their bills go from $63.39 to $69.75.
The PSC set non-recurring charges as follows:
Meter disconnection reduced from $40 to $20.
Meter re-read reduced from $40 to $20.
Meter test reduced from $75 to $53.
Meter turn-on reduced from $40 to $20.
Meter turn-on after-hours reduced from $60 to $55.
Meter reconnection reduced from $40 to $20.
Meter reconnection after-hours reduced from $60 to $55.
Returned check charge raised from $10 to $25.
Service call/investigation reduced from $40 to $20.
Service call/investigation after hours reduced from $60 to $55.