Peaks Mill Water District seeks options after steep losses, new rate orders and federal rules force tough choices

Greg Heitzman, an advisor to the Peaks Mill Water District, told Franklin County fiscal court the small system is facing “existential” financial pressures caused by aging infrastructure, high leakage and rising regulatory costs.

Heitzman said the district’s nonrevenue water loss is about 25% and that when flushing—the routine work required to keep chlorine residuals stable—is included, the total nonrevenue water reaches roughly 45%. A recent cost-of-service study Heitzman helped arrange recommended a rate increase of about 21%; the Kentucky Public Service Commission’s analysis recommended roughly a 28% increase. “We’ve gone from roughly a $48 per month average bill for 4,000 gallons to over $60,” Heitzman said, describing one example of the immediate customer impact.

The presentation outlined three broad paths: continued operation as a standalone district…