Emergency 28 percent rate hike ordered to prevent collapse of Kentucky water district

Water rates will increase by 28 percent for customers in Martin County in an effort to stave off the impending financial collapse of what has been dubbed Kentucky’s “worst water district,” state regulators announced Friday.

In addition to approving an emergency rate increase for Martin County Water District, the Kentucky Public Service Commission ordered the beleaguered district to more aggressively pursue past-due bills by selling old debts to third-party collection agencies, and by shutting off running water to customers who do not pay their bills within 20 days.

According to the order, the district can terminate service five days after it issues a written warning, and 20 days after it sent a bill that hasn’t been paid.

The district, which is more than $800,000 in debt and unable to pay for basic operational repairs, is owed more than $600,000 in uncollected water bills, according to a PSC news release.

Read more here: http://www.kentucky.com/news/state/article205555364.html