In an order issued Friday, the PSC said it wants Lovelaceville Water customers to have enough time to make alternative arrangements for water service, which could include drilling wells or installing cisterns. The agency found that the deteriorating physical and financial condition of Lovelaceville Water made it impossible for the company to continue operating, and attempts to find someone willing to run or take over the system were unsuccessful.
“The Commission regrets the loss of water service to those customers in Lovelaceville,” the PSC said in the order. “However, the Commission also recognizes (current owner Eric) Young for his efforts to continue operation of the utility.”
Obstacles to continued operation of the utility include the need to completely overhaul the system, a dwindling customer base that makes it impossible to raise enough money through rates, and an inability to obtain financing, the PSC said. Because they are privately owned, Lovelaceville Water is not eligible for the grants or low-interest loans available to non-profit rural water systems.
Lovelaceville Water filed an abandonment petition with the PSC in March seeking authorization to shut down the system, which had about 55 customers at the time. Since then, the number of customers has fallen to 42, largely because of customers installing wells in anticipation of the utility being abandoned. Of the remaining customers, only about 25 are current on their bills, Young stated in testimony before the PSC. Among the technical problems faced by the company is the inability to permanently disconnect customers who are not paying their bills. Young told the PSC that customers he has disconnected for non-payment frequently restore service themselves.
The PSC conducted two public meetings in Lovelaceville in May and September to inform the company’s customers about the abandonment process. The evidentiary hearing in the case was conducted in Frankfort on Sept. 17.
The PSC's order, other records in the case and a video of the evidentiary hearing are available at the PSC website, psc.ky.gov. The case number is 2014-00136.
