, Corbin, KY

Local News

June 18, 2014

CUC modifies water contract with CFHWD

Modification allows agreement to extend contract time to 40 years

CORBIN — By Jeff Noble / Staff Writer

A slight modification to a water supply contract between the Corbin Utilities Commission (CUC) and the Cumberland Falls Highway Water District (CFHWD) was approved Tuesday.

That modification allows the agreement to extend the contract time to 40 years, according to CUC General Manager Ron Herd.

The action came during a special meeting of the CUC’s board.

Herd told board members the addendum had to be done due to the U.S. Department of Agriculture-Rural Development (USDA-RD) requiring the contract to cover the length of their loans.

“It’s routine. The addendum will modify the earlier contract recently approved,” he said.

Last month, the CUC approved updates to water supply contracts with Cumberland Falls Highway Water District, along with the Whitley County Water District and the Knox County Utility Commission.

Herd said at the May 13 meeting the CFHWD had to increase their flow, and that they would be buying more water from Corbin City Utilities.

The updated contracts would also allow the other two districts to increase their water flow as well.

The board also approved their annual contribution to the City of Corbin’s Recreation Department. Board Chairman Terry Joe Martin said the agreement lets the utility spread out their contribution of $15,000 over the year, with payments made to the recreation department on a monthly basis.

The city’s Recreation Department will use the money to continue making improvements at their fields.

Among other actions taken, approval was given to the CUC’s net metering policy. Also, officers for 2014-15 were elected. Board Member Martin was named the board’s Chairman, with board member Wendall Mitchell elected Vice-Chairman/Treasurer, and board member Mark Daniel named Assistant Treasurer/Secretary.

In his General Manager’s Report, Herd mentioned the sewer lines and pump station have been installed on the KY 1232 Sewer Extension Project in Knox County. However, some work on the pump station needs to be completed, along with final cleanup work at various locations, and the paving of KY 1232 has not been completed.

He noted the state highway department is scheduled to begin paving the highway where the work was done, later this month.

The sewer extension project along KY 1232 was constructed with $1,297,119 in state and federal grants.

Meanwhile, negotiations continue between Kentucky Utilities (KU) and 10 municipal customers, including the CUC. It involves contract changes filed by KU at the Federal Energy Regulatory Commission (FERC). Herd mentioned several power supply options, due to termination of the contracts with KU continued to be pursued by the group, known as the “Kentucky Municipals.”

Along with the Corbin Utilities Commission, the Kentucky Municipals are made up of nine other municipal electric utilities — Barbourville, Benham, Berea, Frankfort, Falmouth, Madisonville, Paris, Providence and Bardwell — and the city-owned utilities in Bardstown. KU currently provides them with an offset to their bills, in recognition of electricity generated by the Southeastern Power Administration.

This month’s meeting was originally set for Tuesday, June 10. However, Herd was out of town on business that day, so the board agreed to change the meeting date to Tuesday and make it a special meeting.

Next month’s regular meeting on Tuesday, July 8 will also be changed to a different date later in the month.

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