Kentucky committee approves measure to increase oversight of Louisville Metropolitan Sewer District

Kentucky House Committee on Natural Resources and Energy on Monday approved a committee substitute for House Bill 387, a measure seeking new oversight and spending restrictions for the Louisville Metropolitan Sewer District (MSD).

Sponsor Representative Bowman told the committee the bill is intended to provide “oversight and accountability for expenditures within the district,” and to respond to concerns from Louisville ratepayers who have seen steep utility increases over time. "One out of every five Kentuckians resides in Louisville, and they need our help today," Bowman said during his presentation to the committee.

Supporters of the substitute emphasized that a provision originally in the bill — requiring MSD to obtain Metro Council approval for rate increases above inflation — was removed after stakeholders warned it could harm bond ratings and existing contracts. "That part of the bill has come out due to some issues with some contracts in those adjoining counties... and the bond rating that MSD needs to continue to operate," the sponsor said.

Tony Parrott,…