KRS 74.012: Water district -- Creation -- Application to Public Service Commission --

Hearing -- Conditions.

(1) Prior to the establishment of any water district as provided by KRS 74.010, and

prior to the incorporation or formation of any nonprofit corporation, a ssociation or

cooperative corporation having as its purpose the furnishing of a public water

supply (herein referred to as a "water association"), a committee of not less than five

(5) resident freeholders of the geographical area sought to be served with water

facilities by the proposed district or the proposed water association shall formally

make application to the Public Service Commission of Kentucky in such manner

and following such procedures as the Public Service Commission may by regulation

prescribe, seeking from the commission the authority to petition the appropriate

county judge/executive for establishment of a water district, or to proceed to

incorporate or otherwise create a water association. The commission shall

thereupon set the application for formal public hearing, and shall give notice to all

other water suppliers, whether publicly owned or privately owned, and whether or

not regulated by the commission, rendering services in the general area proposed to

be served by said water district or water association, and to any planning and zoning

or other regulatory agency or agencies with authority in the general area having

concern with the application. The commission may subpoena and summon for

hearing purposes any persons deemed necessary by t he commission in order to

enable the commission to evaluate the application of the proponents of said

proposed water district or water association, and reach a decision in the best

interests of the general public. Intervention by any interested parties, wa ter

suppliers, municipal corporations, and governmental agencies shall be freely

permitted at such hearing.

(2) The public hearing shall be conducted by the commission pursuant to the provisions

of KRS 278.020. At the time of the hearing, no employment of counsel or of

engineering services shall have been made to be paid from water district funds,

water association funds, or made a charge in futuro against water district or water

association funds, if formation of such water district or water association is

permitted by the commission.

(3) Before the Public Service Commission shall approve any application for creation of

a water district or water association, the commission must make a finding and

determination of fact that the geographical area sought to be served by such

proposed water district or water association cannot be feasibly served by any

existing water supplier, whether publicly or privately owned, and whether or not

subject to the regulatory jurisdiction of the commission. If it shall be determin ed

that the geographical area sought to be served by the proposed water district or

water association can be served more feasibly by any other water supplier, the

commission shall deny the application and shall hold such further hearings and

make such further determinations as may in the circumstances be appropriate in the

interests of the public health, safety and general welfare.

(4) Any order entered by the commission in connection with an application for creation

of a water district or water association shall be appealable to the Franklin Circuit

Court as provided by KRS 278.410.