278.023 Approval of federally-funded construction projects -- Commission review

413 words·~2 min read·/ky/278-023

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

of agreement and supporting documents -- Surcharge.

(1)The provisions of this section shall apply to any construction project undertaken by

a water association, commission, district, or combined water, gas or sewer district

formed under KRS Chapter 74 or 273, which is financed in whole or in part under

the terms of an agreement between the water utility and the United States

Department of Agriculture or the United States Department of Housing and Urban

Development. Because federal financing of such projects entails prior review and

oversight by the federal agency and obligates the utility to certain actions, and

because conflicting requirements by the federal agency and the Public Service

Commission may place the water utility in an untenable position and delay or

jeopardize such projects, it is declared to be the policy of the Commonwealth that

such agreements shall be accepted by the Public Service Commission, and that the

commission shall not prohibit a water utility from fulfilling its obligations under

such an agreement.

(2)No agreement between a water utility and federal agency under this section shall

take effect until thirty

(30)days after such agreement, together with necessary

applications and documentation, is filed with the commission, unless the

commission acts within a lesser time. The commission in its administrative

regulations shall list the specific documents required to be filed under this

subsection.

(3)The commission shall review the project and the agreement, may recommend

changes to the utility and the federal agency, but shall not modify or reject any

portion of the agreement on its own authority. The commission shall issue a

certificate of necessity and convenience and such other orders as may be required to

implement the terms of the agreement no later than thirty

(30)days after filing.

(4)The commission shall not prohibit the inclusion of any cost or the use of any

accounting procedure in reviewing or setting the rates of the utility if such cost or

procedure is required as a condition for federal financing of a construction project

under an approved agreement between the water utility and federal agency.

(5)If the federal agency approves a surcharge to the water bills of customers who

receive service through an extension of water facilities under this section, which is

in lieu of an assessment against the customer for the cost of the extension, then the

Public Service Commission shall allow collection of the surcharge to continue for

the period of years for which the surcharge was established.