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Hopkinsville water utility proposes phased wholesale rate increase for Christian County Water District
Summary
Hopkinsville Water Authority staff told the City Council they will ask to simplify a 3-tier wholesale water rate to a single $3.98 per 1,000-gallon rate, phased in over three years starting Oct. 1, and that the Christian County Water District has agreed not to oppose the change when it is filed with the Kentucky Public Service Commission.
Representatives of the Hopkinsville Water Authority told the Hopkinsville City Council on Aug. 5 that a wholesale-rate study recommends replacing the current three-tier wholesale price with a single rate of $3.98 per 1,000 gallons, with the increase phased in over three years and an intended first step on Oct. 1, officials said.
The recommendation was presented by Hopkinsville Water Authority staff. Melissa Sellerspur, chief operating officer, said the study "simplifies the current 3 tier structure to a single tier and it also has a 3 year impact and increase implementation to decrease the impact of their customers." Daniel Lancaster, director of water, described the study's technical basis and the utility's cost pressures.
The nut of the presentation: the wholesale rate charged to the Christian County Water District has not changed since 2010 and, the utility said, rising labor, chemical and electricity costs mean the city's customers should not continue to subsidize wholesale customers. Lancaster said the utility engaged HDR Engineering for the wholesale rate study…
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