By AP
Russellville, KY – The Kentucky Court of Appeals ruled Friday that the state Public Service Commission was right in voiding the city of Russellville's water rate increase.
At issue was a ruling by the Franklin Circuit Court which upheld the PSC's previous decision voiding the rate increase which Russellville wanted to impose on various water districts.
In May 1999, Russellville's city council approved an ordinance that sought an increase in its water and sewer service rates. Russellville had wanted to increase water rates from $1.55 to $2.45 per 1,000 gallons of water sold.
Initially, the PSC approved the increase as of April 21st, 2001. But water districts served by Russellville argued that the city did not follow proper procedures with the PSC for increasing the rates. They said the hike did not reflect the actual cost of the service.
The PSC voided the increase in July, 2002. Russellville appealed to the Franklin Circuit Court, but the PSC's decision was upheld.