PSC rejects Southern Water rate increase due to use of old data

FRANKFORT, Ky. — A proposed rate increase for Southern Water and Sewer District has been rejected, at least temporarily, because the utility used the wrong data in its application.

Southern filed an application with the Kentucky Public Service Commission last month, asking to Raise both its customer charge and water rate by more than 28 percent. If approved, that would raise the average residential customer bill from about $60 a month to more than $75.

But last week, the PSC rejected the application because Southern used old data to justify the request.

When filing for a rate adjustment, utilities are required to include data from their most recent calendar year to show costs and revenues to justify the increase. But in its application, Southern used data from 2022, instead of 2023.

Southern has been ordered to resubmit its application using the correct data as soon as possible. The PSC’s order also mandates if the 2023 data changes the required rates, Southern must publish a new public notice for customers within 45 days of its application.