PSC INSPECTIONS

1. PSC INSPECTIONS InvestigatorWater & Sewer BranchDivision of EngineeringPublic Service Commission Jimmy Adcock

2. Topics • Regulations • Which regulations affect you! • Why are there regulations? • PSC Inspection Program • Purpose of inspecting a utility • Five elements of the inspection program

3. Inspection Program • To ensure utilities provide customers with safe,adequate, and reliable service at fair, just, and reasonable rates • To ensure utilities are in compliance with the PSC Statutes and Regulations

4. Commissions Statutes & Regulations Regulations Affecting You • KRS 74, 278 • 807 KAR 5:006: General Rules • 807 KAR 5:011: Tariffs • 807 KAR 5:066: Water

5. Serve as guidelines for each utility Why Regulations? • Aid the utility in its operation • So utilities may provide safe, adequate, and reliable service at fair, just, and reasonable rates • Inspections are reminders of what regulations require

6. Why Regulations? This? or This?

7. Why Regulations? This? or This?

8. Why Regulations? This? or This?

9. Why Regulations? This? or This?

10. Why Regulations? This? or This?

11. Why Regulations? This? or This?

12. Why Regulations? This? or This?

13. Inspection Pre-Inspection Enforcement Report Follow-Up Elements of Inspection Program

14. Pre-Inspection

15. Pre-Inspection • The Central Files contain: • Last inspection report • Utility’s reply • Last construction project information • Meter testing reports • Accident and boil water advisories

16. Pre-Inspection • The Annual Report contains: • Latest gross annual utility revenue • Annual water loss • Average daily consumption • Capacity of water plant • Distribution system statistics

17. The Inspector Cometh The Inspector is the eyes and ears of the Public Service Commission • Inspection Checklist (13 pages) • Digital Photographs • Is your Utility ready for Review • Is your Utility in Compliance

18. Periodic Inspection • Be Prepared • Fill out inspection worksheet BEFORE inspector arrives • Get them in and out • Have records and files ready for inspector to review • Highlight your accomplishments • Completed or new projects, no DOW violations

19. Periodic Inspection • If the utility discovers a problem or needs assistance, ask inspector for help • Write down any questions you want to ask • Inspectors look at many areas of the utility, sometimes areas the utility may want to avoid • Leaks at pump stations, rust on tanks

20. Periodic Inspection • Office Review (Office Manager) • Posted tariffs, rules, regulations, & statutes • Office personnel security and safety • Office records (new special charges, fees) • Number of customers • Billing cards & Deposit data • Customer complaints & customer service

21. Periodic Inspection • Office Review (Utility Manager) • Upcoming construction projects • Rate Issues (proposed increases) • Water purchase contracts • Water loss figures from previous year • New water sales to other utilities

22. Periodic Inspection • Office Review (Utility Manager) • Meter testing program • System map • Safety program • Inspection program • Maintenance program and records • Water quality

23. WD Safety Program • Employees should carry current ID’s • Vehicles should be properly marked • Never enter a resident’s home • Employees should be properly trained • Flagging • Dress (Hard hats, orange vests, boots, etc) • Signs and Cones • Trenching accidents • 400 deaths, 6,400 serious injuries per year in U.S.

24. Periodic Inspection • Office Review (Utility Manager) • Valve program • Accounted-for water loss • Flushing program • Fire protection • Water pressure and hydraulics • Water shortage response plan

25. Be Proactive, not Inactive or Reactive • Preventative Maintenance Program • Develop a Systems Management Plan • Each employee should read and sign • Leak Detection Program • Training, Training, Training • It’s vital for employees to be properly trained • Keep critical replacement parts available

26. Be Proactive, not Inactive or Reactive • Promptly notify DOW, PSC & customers of any BWA’s, NOV’s, etc. • Promptly notify PSC of substantial property damage or major accidents • Keep response time to a minimum • Document, Document, Document • Proper record keeping is crucial • Document “everything” • Back-up your data and files

27. Periodic Inspection Record Keeping

28. Periodic Inspection • Field Review (Certified Operator) • Utility plant • Distribution system • Inspection and maintenance records • Photographs of water plant, storage tanks, pump stations, deficient facilities • Customer surveys

29. Inspection Report • Inspection checklist used to draft report • Written report summarizes investigation, includes photographs • Sites new deficiencies and highlights any repeat deficiencies • Copy sent to utility & Division of Water • Utility has 30 days to respond

30. Follow-Up Inspection • Typically performed at next yearly inspection • Some situations warrant sooner follow-up inspections • PSC can help with informal follow-up meetings • Regulatory compliance is principal goal

31. Enforcement • Deficiencies go uncured, follow-up attempts are unsuccessful • Show-cause hearing may be pursued • Order may be issued by PSC • Franklin Circuit Court may get involved • Goal is to AVOID this phase

32. Summary • Regulations • KRS 278, 74 • 807 KAR 5:006, 011, & 066 • Serve as guidelines for each utility • Safe, adequate, reliable service • Fair, just, and reasonable rates

33. PSC Inspection Program • Reminder of what the regulations require • Pre-Inspection • Inspection • Report • Follow-up • Enforcement Summary

34. Questions?

35. Jimmy Adcock Investigator, Water & Sewer BranchDivision of Engineering 211 Sower Blvd. Frankfort, KY 40602 http://psc.ky.gov Ph: (502) 564-3940 ext 415 Fax: (502) 564-1582 JimmyR.Adcock@ky.gov Public Service Commission