Cumberland County Water District Rates

NOTICE OF PROPOSED RATE CHANGE

In accordance with the requirements of the Kentucky Public Service Commission
(“PSC”) as set out in 807 KAR 5:069, Section 3, notice is hereby given to the customers of the
Cumberland County Water District (“District”) of a change in water rates for users of the
District’s water system. The changes in water rates are required by the U.S. Department of
Agriculture, acting through Rural Development (“RD”) in connection with a loan by RD to the
District in the principal amount of $700,000 to be evidenced by the issuance by the District of its
waterworks revenue bonds in such amount, which RD has agreed to purchase provided the
District meets certain conditions of RD, including revising the water rates as set forth below:

Current Monthly Water Rates
5/8 x 3/4 inch Meters Monthly Rate
First 2,000 gallons $27.00 Minimum
Next 3,000 gallons $7.50 Per 1,000 gallons
Next 5,000 gallons $6.50 Per 1,000 gallons
All Over 10,000 gallons $5.50 Per 1,000 gallons
1 inch Meters Monthly Rate
First 5,000 gallons $49.50 Minimum
Next 5,000 gallons $6.50 Per 1,000 gallons
All Over 10,000 gallons $5.50 Per 1,000 gallons
1-1/2 inch Meters Monthly Rate
First 12,500 gallons $95.25 Minimum
All Over 12,500 gallons $5.50 Per 1,000 gallons
2 inch Meters Monthly Rate
First 25,000 gallons $164.50 Minimum
All Over 25,000 gallons $5.50 Per 1,000 gallons
Dale Hollow State Park Monthly Rate
First 300,000 gallons $1,677.00 Minimum
All Over 300,000 gallons $5.50 Per 1,000 gallons

Proposed Monthly Water Rates
5/8 x 3/4 inch Meters New Monthly Rate Dollar Change Percent Change
First 2,000 gallons $28.16 $1.16 4.30%
Next 3,000 gallons $7.65 $0.15 2.00%
Next 5,000 gallons $6.65 $0.15 2.31%
All Over 10,000 gallons $5.65 $0.15 2.73%
1-inch Meters New Monthly Rate Dollar Change Percent Change
First 5,000 gallons $51.11 $1.61 3.25%
Next 5,000 gallons $6.65 $0.15 2.31%
All Over 10,000 gallons $5.65 $0.15 2.73%
1-1/2 inch Meters New Monthly Rate Dollar Change Percent Change
First 12,500 gallons $98.49 $3.24 3.40%
All Over 12,500 gallons $5.65 $0.15 2.73%
2-inch Meters New Monthly Rate Dollar Change Percent Change
First 25,000 gallons $169.11 $4.61 2.80%
All Over 25,000 gallons $5.65 $0.15 2.73%
Dale Hollow State Park
New Monthly Rate Dollar Change Percent Change
First 300,000 gallons $1,722.86 $45.86 2.73%
All Over 300,000 gallons $5.65 $0.15 2.73%

The proposed monthly water rates shall be effective for water sold after the date of the final
approving Order of the PSC, which Order is expected to be issued no later than 30 days of the
filing of the Application. The amount of average usage for all customers in the calendar year
2016 was 4,400 gallons per month thus generating an average monthly billing based on current
rates of $45.00. The proposed monthly rates will increase the average monthly billing to $46.52
for an impact of $1.52 or 3.38%. The Application for approval of the rate change has been filed
with the PSC and may be examined during normal business hours at the following locations: (i)
Cumberland County Water District Office, 133 Lower River Street, Burkesville, KY 42717; (ii)
PSC, 211 Sower Boulevard, Frankfort, Kentucky, Monday through Friday, 8:00 a.m. to 4:30
p.m., E.T.; and (iii) via the PSC website at http://psc.ky.gov. Comments regarding the
Application may be submitted to the PSC via its website or by mail to PSC, P.O. Box 615,
Frankfort, Kentucky 40602.
The proposed rates are required under the terms of an agreement between the District and
RD and KRS 278.023 does not grant the PSC any discretionary authority to modify or reject any
portion of the agreement between the District and RD, or to defer the issuance of all necessary
orders to implement the terms of the agreement. The RD loan proceeds will be used to finance
the costs of the installation of (i) approximately 14,800 linear feet of 3, 4 and 6 inch water main
plus associated appurtenances along KY Highway 485 (Sulphur Creek Road); (ii) a pressure
reducing vault; and (iii) a master meter vault. Signed: Alvin Pharis, Chairman, Cumberland
County Water District.

Providing safe, clean drinking water