FRANKFORT, KY.-The Martin County Water District filed an application on January 16th seeking a nearly 50% increase in water rates.
In an order issued Friday, the PSC granted Martin County Water an annual revenue increase of about 26.5 percent, consisting of an increase in base rates and a separate surcharge that will be used by the utility to pay its over 800-thousand dollars in unpaid bills. The average monthly residential bill will rise by $11.17, or about 28 percent, going from $39.90 to $51.07.
The PSC expressed sympathy for the plight of Martin County Water’s customers and the widespread opposition to raising rates for water service that has often been inadequate or, at times, non-existent. However, the district faces a dire situation, the PSC said.
“The reality of the situation is that, absent some amount of the emergency relief requested, Martin District will be unable to continue operating within 60 to 90 days, leaving every customer with no water service, forcing residential customers to abandon their homes and commercial customers, including schools, to close,” the PSC said in the order. “While raising water rates clearly places an increased burden upon Martin District’s customers, the alternative of not raising rates would create an even greater burden.”
The PSC also noted that placing the utility into receivership, as advocated by some customers, will not avoid a rate increase. Martin County Water will need additional revenue regardless of who may be operating the system.
The additional revenue comes with strict reporting requirements. Martin County Water must submit monthly updates to the PSC on its revenue and detailed accounting of its spending. Those reports will be available to the public.
Click the link to view the full PSC press release.
