Kentucky Public Service Commission

Final Order Entered: 1 . The findings contained in the Staff Report are adopted and incorporated by reference into this Order as if fully set out herein. 2. The general service rates proposed by Muhlenberg District #3 are denied. 3. The rates set forth in the Appendix to this Order are approved for services rendered by Muhlenberg District #3 on and after the date of this Order. 4. Within 20 days of the date of entry of this Order, Muhlenberg District #3 shall file with this Commission, using the Commission's electronic Tariff Filing System, new tariff sheets setting forth the rates and charges approved herein and their effective date, and stating that the rates and charges were authorized by this Order. 5. Muhlenberg District #3 shall use the mid-point of the depreciable lives of the National Association of Regulatory Utility Commissioners ranges, as proposed in the Application and agreed upon by Staff, to depreciate water plant assets for accounting purposes in all future reporting periods. No adjustment to accumulated depreciation, or retained earnings should be made to account for this change in the accounting estimate. 6. This case is closed and removed from the Commission's docket.

Muhlenberg County Water District No. 3 Affidavit of Publication of Customer Notice

Muhlenberg County Water District #3 Revised Customer Notice

Muhlenberg County Water District #3 Response to Staff Report

Notice of Filing of Commission Staff Report

Order Entered: 1. No later than January 22, 2019, Commission Staff shall file with the Commission and serve upon all parties of record a written report ("Staff Report") containing its findings and recommendations regarding Muhlenberg District #3's requested rate adjustment. 2. No later than 14 days after the date of the filing of the Commission Staff Report each party of record shall file with the Commission: a. Its written comments on and any objections to the findings contained in the Commission Staff Report; and b. Any additional evidence for the Commission to consider. 3. If Commission Staff finds that Muhlenberg District #3's financial condition supports a higher rate than Muhlenberg District #3 proposes or the assessment of an additional rate or charge not proposed in Muhlenberg District #3's Application, Muhlenberg District #3 in its response to the Commission Staff Report shall also state its position in writing on whether the Commission should authorize the assessment of the higher rate or the additional rate or charge. 4. If Commission Staff finds that changes should be made to the manner in which Muhlenberg District #3 accounts for the depreciation of Muhlenberg District #3's assets, Muhlenberg District #3 in its response to the Commission Staff Report shall also state its position in writing on whether the Commission should require Muhlenberg District #3 to implement the proposed change for accounting purposes.

No deficiency letter

Acknowledge Receipt of Filing

Muhlenberg County Water District #3 Application for Rate Adjustment for Small Utilities Pursuant to 807 KAR 5:076