PSC approves transfer of eight small sewer systems

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Sewer Repair Work- South Lexington 05-21-14

FRANKFORT, Ky. (WTVQ) – The Kentucky Public Service Commission approved the sale of eight small sewer systems to a Missouri-based company that has promised to correct long-standing problems with most of the systems.

The PSC found that Bluegrass Water Utility Operating Co., LLC, a subsidiary of Central States Water Resources, has the necessary financial, technical and managerial ability to provide reasonable service and that the transaction is in the public interest, as required by state law.

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The eight privately owned sewer systems together provide sewer service to about 1,300 customers.

Those utilities are:

• P.R. Wastewater serves 361 customers in the Persimmon Ridge development in Shelby County. It is in generally good condition, but has had some problems meeting wastewater treatment standards.
• Marshall County Environmental Services, which operates the Great Oaks and Golden Acres systems, has a combined 126 customers. Both systems are in poor condition; Great Oaks has operated without a valid environmental permit since 2012.
• LH Treatment Co. serves 277 customers in the Longview and Homestead subdivisions in Scott County. Its permit expired last year and it has exceeded some discharge limits.
• Kingswood Development has 124 customers in Bullitt County. The system has recorded sporadic environmental violations.
• Airview Utilities has asked the PSC for permission to abandon its system, which serves 203 customers in Hardin County. The system is in serious disrepair and needs major renovations.
• Brocklyn Utilities serves about 168 customers in Madison County. It is in poor condition, operating on an expired permit, and is barely able to provide adequate service.
• Fox Run Utilities has 34 customers in Franklin County. Its plant is in disrepair and is not meeting environmental standards.
• Lake Columbia Utilities serves 33 customers in Bullitt County. The treatment plant has not been maintained, is not meeting environmental standards and may need to be replaced.



Central States Water Resources was formed to acquire and rehabilitate small water and wastewater systems.

Bluegrass Water plans to operate the Kentucky utilities using the same third-party contractors it has employed successfully in Missouri and Arkansas.

The application identifies them as Nitor Billing Services and Midwest Water Operations. Both will maintain toll-free lines for customers.