McDOWELL, Ky. — After an earlier request for a rate increase was shot down, Southern Water and Sewer District in Floyd County is trying again.
Southern originally filed its application back in September, asking the Kentucky Public Service Commission to approve rates that were more than 28 percent higher. Those rates would have raised customer bills from nearly $60 a month to more than $75 a month.
The PSC requires utilities to base their rate requests on actual revenues and expenses from the preceding calendar year, but Southern used 2022 data in its application instead of 2023. For that reason, the PSC rejected the application and gave Southern a chance to reapply using the correct data.
With the new application, the proposed rates are significantly lower than the earlier application, coming in at 15 percent. However, the new application also includes a $6.83 water loss reduction surcharge which nearly makes up the difference. As a result, the new rate request would still bring the average customer bill to nearly $75 a month, a difference only 57 cents cheaper than the original request.
The PSC will now review the application and schedule a hearing to consider the request.
