The Kentucky Public Service Commission rejected a complaint Lexington Mayor Linda Gorton’s office filed last month against Kentucky American Water, according to a Monday filing.
The PSC said in its order Gorton’s complaint was not about water service issues specifically and fell outside the commission’s jurisdiction.
Following some public criticism of a water project along Fontaine Road, Gorton had filed the complaint to the state regulator with objections to how the utility handled several infrastructure projects in the city.
In Monday's filing, the PSC also said while the city alleged delays and cost overruns might result in higher rates to water customers, city officials offered no evidence water customers have experienced higher rates.
The regulator said cost disallowances related to recent construction should be addressed in a rate case currently before the commission. The PSC will take up the case Tuesday in Frankfort.
“Here, LFUCG described construction and restoration problems but did not provide comparable facts identifying a water-service condition caused by a particular utility practice,” the commissioners rewrote. “The deficiency is the lack of supporting facts connecting the alleged practices to regulated service, not merely that construction or property damage is involved.”
The PSC gave the city 20 days to refile its complaint. It also denied Kentucky American’s request to find the city’s complaint satisfied.
Susan Straub, a spokeswoman for the city, said Gorton would testify at the PSC in Frankfort Tuesday as part of the Kentucky American rate case.
Kentucky American is asking the commission for a nearly 16% increase for residential customers, a 19.5% increase for commercial accounts and a 20% increase for industrial users.
The average residential customer uses about 4,000 gallons each month and now pays $51.60. If the full increase is approved, that would jump to nearly $60.
In the Sept. 8 complaint, Gorton named several projects citywide that had led to traffic delays and property damage to vehicles and other infrastructure.
The complaint also said delayed completion of water main replacement and repair could affect customer quality, pressure and quantity. The PSC said Gorton’s complaint identified no specific cases involving degraded water service to customers.
