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74.480 Exclusive water supply -- Basis for establishing rate, charges.

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74.480 Exclusive water supply -- Basis for establishing rate, charges. (1) When a commission has been created, the cities, water associations, water districts, or federal agencies represented by the commission shall contract with the <br>commission for water and the contracts may provide that the sources of supply of <br>water of the commission shall be the exclusive water supply for the respective water <br>distribution systems. These cities, water associations, or water districts shall <br>establish charges and rates for water supplied by them to consumers sufficient at all <br>times: <br>(a) To pay the principal of and interest on all outstanding obligations of the cities, water associations, or water districts which by their terms are payable in any <br>manner from the revenues of their respective waterworks distribution systems; <br>and (b) To pay the cost of operation and maintenance of their respective waterworks distribution systems, including the payments to be made to the commission <br>pursuant to contracts for the purchase of water by those cities, water <br>associations, or water districts. (2) The commission shall establish charges and rates for water supplied to those cities, water associations, water districts, or federal agencies represented by the <br>commission sufficient at all times: <br>(a) To pay the principal of and interest on the revenue bonds issued by the commission under the provisions of KRS 74.420 to 74.520; (b) To pay the cost of operation and maintenance of the sources of supply of water; and (c) To provide an adequate fund for renewals, replacements, and reserves. Contracts entered into between the commission and the cities, water associations, or <br>water districts shall include covenants for the establishment of rates and charges as <br>provided in this section. Effective: June 24, 2003 <br>History: Amended 2003 Ky. Acts ch. 167, sec. 7, effective June 24, 2003. -- Amended 1996 Ky. Acts ch. 122, sec. 7, effective July 15, 1996. -- Created 1960 Ky. Acts <br>ch. 207, sec. 7, effective June 16, 1960.