Vol. 139 No.45

Wednesday,November 15, 2006

Kentucky American, Owenton mayor pleased

with Lexington water vote

Water lines could reach 80 percent of county by 2007

By JOSHUA COFFMAN
Landmark News Service

 

Water (wah-tur), n. 1. A cool clear fluid needed by all living things. 2. A subject of sometimes red-hot debate in many Northern and Central Kentucky communities.
Water is no stranger to controversy in the Bluegrass State. Lexington citizens recently considered a much-discussed measure on November ballots to condemn privately owned Kentucky American Water and dissolve the company’s Fayette County holdings into a public utility.
Owenton city leaders voted to sell its local water system to the same company last year.
Voters in Lexington opted last week, by a 61-39 measure, to reject the initiative that would have turned the water works over to the city, and they sent several politicians supporting the measure packing along with it.
Kentucky American officials and Owenton’s mayor believe Lexington’s citizens made a wise choice.
“Personally I was glad for that, because I have a problem with a company doing an excellent job … and somebody coming in and trying to condemn,” Mayor David “Milkweed” Wotier said.
Kentucky American spokeswoman Susan Lancho said the company had concerns about Owenton and other nearby communities it served, because those customers would not get to vote on the issue.
“We feel it’s very good news for not only Fayette County but surrounding counties, as well,” she said about last week’s vote.
Wotier said he believes, after last year’s sale of the water system, the company helped the city of Owenton catch up with state regulations more speedily at a time when the municipality was financially strapped.
“I think Kentucky American has ironed out a lot of wrinkles for us,” he said, noting that the partnership, in one form or another actually goes back several years. “They were able to lend us the resources, whether it be technology, manpower or expertise.”
Local leaders hope the partnership with Kentucky American will allow water lines to be extended to 80 percent of Owen County by the end of next year, and company officials hope improvements being made now can continue fostering the partnership for years to come.
“I think it’s been a good relationship,” Lancho said of the work done locally between Kentucky American and city and county officials.
Kentucky American plans to finish a regional treatment plant on the Kentucky River in southern Owen County by 2010 to service Central Kentucky.
“This area has grown a lot and we’ve actually outgrown our water supply,” Lancho said.
Linda Bridwell, American Water’s engineering director for Kentucky and Tennessee, said the plant would likely absorb future growth in the area, but she said the existing plant in Owen County would not likely see any downsizing as a result.
Other ongoing projects include moving its water intake operation to the Kentucky River to improve water quality and using a stand-by pump to kick in when a primary pump underperforms — like in the summer of 2005, which Wotier called “a terrible summer for us.”
Also with the new pump “you won’t see a drop in the lake like in the past few summers,” Bridwell said.
Additionally, Kentucky American is upgrading its maps of local water lines to a digital version and installing a communication system to let plant workers monitor offsite water tanks located throughout the county, among other improvements.
Yet another change at Kentucky American will soon take place — one involving its ownership.
Lancho said Kentucky American’s parent company, German-based energy company RWE, has plans to get out of the water business and offer publicly-traded stock in an initial public offering (IPO).
Of the 29 states in which the company operates, 13 require approval of an IPO by a public-service commission, according to Lancho.
So far, four states have approved the move. Company representatives met with a commission in Kentucky and are awaiting the outcome.
“There shouldn’t be significant changes” for customers, Lancho said.
Meanwhile on the city level, Wotier said Owenton officials have set aside the proceeds from the sale of its water system in a savings fund.
“We’re not anxious to do anything with that right now,” he said, though one possibility is using the money in lieu of a city beautification grant the city applied for but did not receive.
Such a plan could include hanging banners in the downtown district, adding benches and paving a sidewalk from downtown to the park.
“We want to do something specifically for the town,” Wotier said.


 

 

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