McDOWELL, Ky. — The Kentucky Public Service Commission launched an investigation Friday into Floyd County’s Southern Water and Sewer District, alleging the utility has been charging customers a fee without approval.

Southern currently has a case before the PSC, seeking to raise its rates by 15 percent. In order to do so, the utility needs approval from the PSC, which has been going over Southern’s financials to determine if the increase is warranted.

It was during that examination that the PSC discovered Southern has been charging customers a “disconnect charge” that was never approved.

If the PSC determines that Southern’s manager, Randy Conley, and five commissioners, Bob Shepherd, Donnie Daniels, Rick Roberts, Steve Dawson and Leslie Byron Scott, willfully broke the law, they could each be ordered to pay a civil penalty of up to $2,500 and be removed from their positions.

Conley and the commissioners have been ordered to submit individual written responses to the allegations within 20 days.

A copy of the PSC’s order launching the investigation is attached below: