Public Service Commission
PSC OKs New Filtration Plant for Kentucky-American Water - Upgraded facility will replace 90-year-old building, cost $15.6 million

Press Release Date:  Tuesday, December 23, 2014  
Contact Information:  Andrew Melnykovych
502-782-2564 or 502-564-3940
502-330-5981 (cell)

       The Kentucky Public Service Commission (PSC) has authorized Kentucky-American Water Co. to replace a 90-year-old filtration facility at its water treatment plant on Richmond Road in Lexington.
       In an order issue today, the PSC agreed with Kentucky-American that construction of a new facility is the most cost-effective way to address the old building’s structural and operational problems.
       The Richmond Road plant can treat up to 25 million gallons of water per day. It was built in 1924 and last expanded in 1953. The new filters will not change the plant’s overall output, but are designed to be more effective and efficient than the ones they replace. They also will provide reserve capacity, which the current plant does not have.
       The estimated cost of the new facility is $15.6 million, according to Kentucky-American. The utility can seek rate recovery of the facility’s costs in a future rate case.
       Neither the Kentucky Office of Attorney General nor the Lexington-Fayette Urban County Government chose to participate in the case.
       Kentucky-American serves about 126,000 retail and nine wholesale customers in central Kentucky, with most of the retail customers in Lexington.
       Today’s order and other documents in the case are available on the PSC website, The case number is 2014-00258.
       The PSC is an independent agency attached for administrative purposes to the Energy and Environment Cabinet. It regulates more than 1,500 gas, water, sewer, electric and telecommunication utilities operating in Kentucky and has approximately 85 employees.