Kentucky American Water files PSC Application

LEXINGTON, Ky.--Kentucky American Water filed an application March 30 with the Kentucky Public Service Commission (PSC) for approval to construct a new water treatment plant near Monterey in Owen County, an intake site in Franklin County, and a transmission line into Fayette County. This will allow the company to withdraw water from the Kentucky River from the area between locks 3 and 4, known as pool 3. Currently, Kentucky American Water draws water only from pool 9, which is upstream from pool 3

The new plant will treat 20 million gallons of water per day and could be expanded to treat 5 million more if plans proceed for a partnership with the Bluegrass Water Supply Commission (BWSC). The BWSC, which includes 10 area municipally-owned water utilities, could purchase additional water from the new plant. This could occur through a joint-ownership arrangement of the new plant or through negotiated purchase-water agreements. The water eventually could serve all or parts of Bourbon, Clark, Fayette, Franklin, Harrison, Jessamine, Scott, Madison and Montgomery counties.

Additionally, the PSC filing includes copies of plans and specifications for all parts of the project as well background information, referred to as testimony, from Kentucky American Water staff members.

“This is an important step in solving the water supply deficit facing central Kentucky,” Nick Rowe, Kentucky American Water President, said. “This projected shortage cannot be solved by cutting back on watering the lawn or by not washing your car. It is far more than conservation alone can manage. It is about making sure we have the necessary, safe water supply for all residents, businesses, health care facilities and government entities in our region. It is imperative that we move forward as quickly as possible to prevent significant water shortages in the future.”

Kentucky American Water has been studying the problem and seeking solutions for many years. Since the drought of 1999, the company has been an active participant with the BWSC, examining a variety of methods to find the best, most cost-effective ways of using a regional approach to address this issue. Kentucky American Water made a commitment to the PSC last year to move forward with a plan to solve the problem.

Since that time, the company has been studying and securing the plant and intake locations, researching the best routes for the underground water transmission lines, and meeting with property owners, government officials and other community leaders. In mid-February, Kentucky American Water announced it had selected a water transmission route to bring water from the new plant into Lexington. This route runs from the Owen County plant through parts of Franklin, Scott and Fayette counties and will link to Kentucky American Water’s waterlines on Newtown Pike.

During the next few months, Kentucky American Water will continue to research the best alignment of the route for the transmission line. This will be done with significant input from property owners along the route and always with the intention of creating the least disruption to the environment.

The company plans to begin construction this fall with the project being completed in 2010. Cost of the project is an estimated $160 million. For more information and to follow the development of this project, visit www.bluegrasswater.com.

Kentucky American Water is based in Lexington and serves more than 114,000 customers (approximately 326,000 individuals) in portions of 10 Central Kentucky counties. American Water, the parent company of Kentucky American Water, is headquartered in Voorhees, N.J., and employs approximately 7,000 dedicated professionals who provide high quality water, wastewater and other related services to more than 17 million people in 29 states and Canada.

More information can be found by visiting www.kawc.com and www.amwater.com.

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Nancy Wiser

Principal

Wiser, Hemlepp & Associates

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