2022 SERVICE RULES AND REGULATIONS LOUISVILLE WATER

2022 Service Rules and Regulations Louisville Water Company

2022

SERVICE RULES AND REGULATIONS

LOUISVILLE WATER COMPANY

APPROVED BY BOWW DECEMBER 21, 2021

2022 Service Rules and Regulations Louisville Water Company

TABLE OF CONTENTS

1.0 Water Service and Meters

1.01 General Policies

1.01.1 Application of Rules……………….................... page 1

1.01.2 Violation of Rules……………………………... page 1

1.01.3 Water Quality………………………………...... page 1

1.01.4 Water Supply…………………………………... page 1

1.02 Application / Eligibility

1.02.1 Eligibility for Service………………………….. page 1

1.02.2 Application for Service……………………....... page 1

1.02.3 Payment of Fees / Charges…………..………… page 2

1.03 Retail Water Service

1.03.1 Service Installation……………………….……. page 2

1.03.2 Plumbing Permits…………………………….... page 2

1.03.3 Charge for Service……………………………... page 2

1.04 Types of Services Available

1.04.1 Domestic Service……………………………… page 3

1.04.2 Fire Service……………………………………. page 3

1.04.3 Irrigation Service……………………………… page 3

1.04.4 Combined Residential Domestic / Fire Service.. page 3

1.04.5 Combined Commercial Domestic / Fire Service page 3

1.04.6 Livestock Service……………………………... page 3

1.04.7 Wholesale…………………………….……………..page 3

1.05 Location of Meter / Responsibility for Service

1.05.1 General………………………………………… page 4

1.05.2 Length of Service……………………………… page 5

1.05.3 Maximum Service Size page 5

1.05.4 Customer / Applicant Obligation for Facilities…. page 5

1.05.5 Private Plumbing Facilities Maintenance

Obligations……...……………………………... page 5

1.05.6 Re-Sale of Water………………………………. page 5

1.05.7 Use of Water…………………………………... page 5

1.05.8 Relocation of Service Line……………………. page 5

1.06 Meter Measurement Required of All Water Supplied

1.06.1 Meter Requirement……………………………. page 5

1.06.2 Unauthorized Water Usage……………………. page 5

1.06.3 Water Fill Stations…………………………….. page 5

1.07 Residential Water Service Through Private Easement

1.07.1 Meter Application Criteria…………………….. page 6

1.07.2 Approval………………………………………. page 6

1.07.3 Failure to Comply……………………………... page 6

1.08 Temporary Service / Meters

1.08.1 Application for Temporary Service……….…… page 6

1.08.2 Temporary Account Period……………………. page 7

1.08.3 Temporary Service Attachments………………. page 7

1.08.4 Fees / Charges……………………………….…... page 7

1.08.5 Company Removal of Temporary Service…….. page 7

2022 Service Rules and Regulations Louisville Water Company

1.09 Multiple Unit Premises

1.09.1 General……………………………………….… page 7

1.09.2 Multiple Units…………………………….……. page 7

1.09.3 Master Meters…………………………….……. page 8

1.10 Customer’s Shut Off Valve page 8

1.11 Plumber License and Instructions

1.11.1 Plumbing Permit…………………………….…. page 8

1.11.2 Homeowner’s Permit……………………….….. page 8

1.11.3 On / Off Status of Service………………….……. page 8

1.12 Risk of Loss / Liability

1.12.1 Loss, Damage, Injury……………………….….. page 8

1.12.2 Responsibility……………………………….…. page 8

1.12.3 Before You Dig (BUD)…………………….….. page 9

1.12.4 Damage to Company Facilities…………….….. page 9

1.13 Discontinuance of Service

1.13.1 Discontinuance by the Customer………….…… page 9

1.13.2 Discontinuance by the Company………….…… page 9

1.13.3 Discontinuance of Fire Service………….……... page 9

1.14 Payment of Deposit, Bills, Fees and Other Charges

1.14.1 Service Deposit…………………………….…... page 9

1.14.2 Late Payment Fee.……………….…..…….…… page 10

1.14.3 Delinquent Bills…………………………….….. page 10

1.14.4 Overdue Notice………………………….……... page 10

1.14.5 Responsibility for SFO Usage page 10

1.14.6 Hearing Officer……………………………….... page 10

1.14.7 Account Consultation……………………….... page 10

1.14.8 Shut Off After …Account Consultation….…... page 11

1.14.9 Notice of Shut Off……………………….……... page 11

1.14.10 Restoring Services…………………………….... page 11

1.14.11 Returned Check Fee…………………………..... page 11

1.14.12 Combined Billing………………………………. page 11

1.14.13 Fees for Activities / Services Performed by

Company………………………………………... page 11

1.14.14 Cross Connection Control Charge....…………… page 12

1.14.15 Existing Service Activation Fee………………… page 12

1.14.16 Existing Service Deactivation Fee……………… page 12

1.14.17 Backbilling and Billing Refunds ……………….. page 12

1.14.18 Elevated Service Charge page 12

1.14.19 At Risk Properties…………………………………..page 12

1.14.20 Disputes……………………………………………..page 12

1.14.21 Application of Payment Proceeds page 12

1.15 Fire Protection Services and Charges

1.15.1 General………………………………….……… page 12

1.15.2 Use of Fire Service………………….….………. page 12

1.15.3 Fire Service Charges…………………….……... page 13

1.15.4 Combined Residential Domestic / Fire Services… page 13

1.15.5 Combined Commercial Domestic / Fire Services.. page 13

2022 Service Rules and Regulations Louisville Water Company

1.16 Estimating of Consumption

1.16.1 Estimated Bill………………………………..…. page 14

1.16.2 Inaccurate Meter………………………………. page 14

2.0 Cross Connection and Backflow Prevention

2.01 Backflow Prevention, Foreign Supplies, Existing Water Service,

and Dual Service Supplies

2.01.1 Backflow Testing………………………….….… page 15

2.01.2 Backflow Prevention Assembly Requirements..…... page 15

2.01.3 Existing Water Service…………………………. page 16

2.01.4 Fire Service Backflow Prevention…………..….. page 16

2.01.5 Combined Residential Domestic / Fire Service and

Combined Commercial Domestic / Fire Service… page 16

2.01.6 Foreign Supplies………………………………... page 16

2.01.7 Dual Services………………………………….... page 16

2.01.8 Fountains, Swimming Pools and Aquariums….... page 16

2.01.9 Right to Inspect…………………………………. page 16

2.01.10 Failure to Comply………………………………. page 16

2.01.11 Exceptions…………………………………….… page 17

3.0 Water Main Extensions for Retail Service Area

3.01 General Policy for Extensions

3.01.1 General……………………………………..…… page 17

3.01.2 Extension Methods…………………..…………. page 17

3.01.3 Extension Approval………………………..…… page 17

3.01.4 Compliance with Applicable Rules and

Regulations……………………………………... page 17

3.01.5 “Tap” Defined………………………………….. page 17

3.01.6 Company Extensions…………………………… page 17

3.01.7 Minimum Extension Length…………………..... page 18

3.01.8 Ownership / Control……………………………. page 18

3.01.9 Main Extension Routing page 18

3.01.10 Rights-of-Way and Easements………………..... page 18

3.01.11 Street Grade Restriction……………………........ page 18

3.01.12 Determination of Size of Water Main…………... page 18

3.01.13 Betterment……………………………………… page 18

3.01.14 Cost of Fire Hydrants…………………………… page 19

3.01.15 Elevated Service Area…………………………... page 19

3.01.16 One Hundred Lot Rule………………………….. page 19

3.02 Developer Tapping Fee Extension Method

3.02.1 Cost of Extension……………………………..… page 19

3.02.2 Design Standards……………………………….. page 19

3.02.3 Collection and Payment of Tapping Fees……….... page 20

3.02.4 Waived Tapping Fee Privileges……………….... page 20

3.02.5 Recovery Period……………………………….... page 20

3.02.6 Acquired or Merged Systems………………….... page 20

2022 Service Rules and Regulations Louisville Water Company

3.03 Refunding of Installation Cost Extension Method

3.03.1 Application……………………………………… page 20

3.03.2 Refund for Projects Utilizing 5/8 x ¾”

Services……………………………..………..…. page 21

3.03.3 Refund for Projects Utilizing Unconfirmed

Sizes of Services Greater than 5/8 x ¾”………... page 22

3.04 Two-Thirds Majority Tapping Fee Extension Method

3.04.1 Application…………………………………….... page 23

3.04.2 Cost of Extension……………………………..… page 23

3.04.3 Design and Construction Standards…………..… page 23

3.04.4 Tapping Fee…………………………………..… page 23

3.04.5 Payment Method……………………………..…. page 24

3.04.6 Subsequent Connections…………………..……. page 24

3.04.7 Recovery Period………………………………… page 24

3.04.8 Subsequent Extensions…………………..……... page 24

3.05 Apportionment Warrant Extension Method (KRS 96.265)

3.05.1 General……………………………………..…… page 24

3.05.2 Apportionment Warrant Tapping Fees……..…... page 24

3.05.3 Extension by Private Agreement……………..… page 25

3.06 Rebating Tapping Fee Extension Method

3.06.1 Application…………………………………….... page 25

3.06.2 Equitable Share of Cost……………………….... page 25

3.06.3 Collection of Tapping Fees……………………... page 25

3.06.4 Rebating of Tapping Fees……………………..... page 25

3.06.5 Recovery Period……………………………….... page 25

3.07 System Development Charge Rule

3.07.1 General………………………………………..… page 26

3.07.2 Specific System Development Charge………..… page 26

3.08 Waterworks Facility Relocation

3.08.1 General Policy……..……………………………. page 26

3.08.2 Construction Procurement Options……..………. page 26

3.08.3 Undepreciated Value of Assets to be Relocated

or Abandoned…………………………………… page 27

3.08.4 Cost Adjustment…………………………..……. page 27

3.08.5 Ownership and Control……………………..…... page 27

3.08.6 Determination of Size of Water Main………..…. page 27

3.08.7 Rights of Way and Easements………………..… page 27

4.0 Tapping Fees

4.01 Tapping Fee Policy………………………………...................... page 28

4.02 Tapping Fee Schedule…………………………………………. page 28

4.03 Tapping Fees in Water Districts Leased……………………… page 28

5.0 Fire Hydrants

5.01 General……………………………………………..................... page 28

5.02 Fire Hydrants Requested by Individuals or Agencies….……. page 28

5.03 Ownership of Fire Hydrants…………………………............. page 28

5.04 Certified Flow Tests………………………….……….………. page 28

5.05 Private Fire Hydrants……………………………… page 28

2022 Service Rules and Regulations Louisville Water Company

1.0 WATER SERVICE AND METERS

1.01 General Policies

1.01.1 Application of Rules - All water service shall be governed by these rules and regulations as stated

or as amended by the Board of Water Works. The rules and regulations shall be strictly and

impartially enforced by the Louisville Water Company officers, employees and the Board of Water

Works. Variances from these rules and regulations must be authorized by the Chief Engineer or

his designee with documentation of the variance filed with the Corporate Secretary.

1.01.2 Violation of Rules - Any customer violating or permitting violations of the Company's rules and

regulations governing the introduction, supply and consumption of water will be notified thereof,

in writing. The notification of violation will be delivered by hand or by certified mail. If the

customer then fails or refuses to comply immediately with the order of the Company, the Company

may terminate the water service. The Company retains its right to recover all costs incurred

because of such violation and to report violations of law. Water service will not be restored until

the rule violation is corrected, satisfactory arrangements have been made to recover all costs

incurred as a result of the violation, and satisfactory assurance is given that future abuses will not

occur. In the case of persistent violation and disregard of the Company's rules, the service

attachment, corporation stop or ferrule, may be withdrawn from the distribution pipe and the

supply wholly discontinued.

1.01.3 Water Quality - The Company will meet all State and Federal standards and / or any other

applicable governmental laws and regulations for drinking water. However, the Company is not

and cannot be responsible for the quality of its product once such product leaves its system and

passes a point beyond its control.

The Company expressly reserves the right to disconnect, confiscate unauthorized devices, and / or

discontinue water service or any other connection with or without notice where the Company

discovers, finds or is otherwise made aware of any such installation that poses a threat to the public

water supply, public health or public safety.

1.01.4 Water Supply - The Company cannot guarantee a specific water pressure, quantity or an

uninterrupted supply of water. The supply will be as free from interruptions as is possible. The

supply and pressure in the public water system may be affected by main breaks, scheduled repairs,

alterations, additions, fire hydrant usage, variations in hydraulic performance and acts of God.

1.02 Application / Eligibility

1.02.1 Eligibility for Service - Except as permitted under Service Rule 1.07, a property is eligible for

water service only when it resides within Louisville Water’s retail service area and abuts a public

right-of-way, public water easement or other public utility easement within which a Company

water distribution main is located.

1.02.2 Application for Service - Applications for service attachments to distribution pipes must be made

by the owner of the premise to be served or by the owner's agent as authorized in writing. When

requested by the Company, the applicant must, as a prerequisite for the granting of the application,

provide proof of ownership or written authority to act as an agent for the owner, state fully and

truthfully all purposes for which the water is requested, provide the desired peak flow rate, , and

sign a required application for such service. Applications will be reviewed to determine eligibility

and may be denied. Examples of ineligibility may include, but are not limited to, reasonable

2022 Service Rules and Regulations Louisville Water Company

suspicion of identity theft, insufficient required paperwork or permits, noncompliance with

Louisville Water Service Rules and Regulations and / or inadequate hydraulic capacity.

1.02.3 Payment of Fees / Charges - Upon approval of an application, service will be scheduled upon

receipt of applicable fees and charges related to obtaining service and payment of all other

outstanding bills or charges from another address where service was provided and was the

responsibility of the applicant. Any additional charges or refund on accounts will be made to the

person or business named as account holder.

1.03 Retail Water Service

1.03.1 Service Installation - Upon proper application for its service, the Company shall furnish and install

(if not already present), at the applicant's expense, that portion of the service line from the

Company's distribution main to the applicant's property line or easement line including necessary

appurtenances. Installation of water service may occur at discretion of Chief Engineer. In addition

to the foregoing, the Company reserves the right regarding removing any unused services on the

premise, including but not limited to, the meter frame and cover and filling in the vault with sand

or crushed stone and cutting the service line at the main and turning the corporation stop off, all at

the applicant’s expense.

1.03.2 Plumbing Permits - Louisville Water's New Service Applications requires a Division of Plumbing

permit for each domestic and irrigation service to verify the intended structure is going through

the proper regulatory building channels. If an exemption has been granted, a completed Affidavit

for Farmstead Exemption Form must be provided at the time of application submittal. The service

will not be installed until the applicant obtains and submits copies of all necessary approvals and

permits from the local plumbing inspection office and health department. Plumbing permits may

be obtained from the following agencies:

• Bullitt County Health Department (for property in Bullitt County)

• State Department of Housing, Division of Plumbing (for property in Jefferson County)

• Oldham County Health Department (for property in Oldham County)

1.03.3 Charge for Service - There shall be a flat service installation fee under typical construction

conditions for the following:

The Company may also establish service installation fees for other services as applicable. The

Company reserves the right to charge the actual costs of installation (e.g. rock, multi-lane roads,

LOJIC GIS data, staff time to process service application. etc.). If, in the judgment of the

Company, any water service line installation has unusual installation obstacles or shall be longer

than 100 feet, then such services will be installed on an actual cost basis.

The amount of the flat service installation fee is approved by the Board and shall be published as

the Louisville Water Company New Service Fee Schedule. Charges are determined from the

estimated average cost of installations based on service size.

¾” domestic or irrigation services 1” domestic or irrigation services

1½” domestic or irrigation services 2” domestic or irrigation services

1” two-way domestic service ¾” irrigation retrofit

1” irrigation retrofit 4” fire service

6” fire service

2022 Service Rules and Regulations Louisville Water Company

Services to critical customers such as, hospitals, dialysis facilities, surgical centers, schools,

nursing homes, and hotels shall be installed with isolation valves on either side of their service tap

on looped mains and provided with a secondary water supply grid-tie on dead ended mains.

Exceptions to this rule will be reviewed and approved by the Chief Engineer or designee.

Any service for which a service installation fee has not been established shall be installed on an

actual cost basis. The installation fee or deposit based on the estimated cost will be taken at the

time of application.

1.04 Types of Services Available

Unless specifically authorized in Rule 1.09, 1.15.4, 1.15.5, or 2.01.7, only one domestic, one fire

and one irrigation service shall be provided into a premise unless the Chief Engineer, or designee,

approves the customer's demonstrated need for additional service and appropriate backflow

prevention is installed as approved by the Company as required in Rule 2.01.1.

1.04.1 Domestic Service – A domestic service is defined as a water service to provide water for potable

purposes. A domestic service shall be the only source used in filling swimming pools.

1.04.2 Fire Service – A fire service is defined as a water service to provide water for fire protection or

firefighting purposes and it is not for potable use. Fire Services 4" and larger to supply sprinkler

systems and/or private hydrants must be a separate service attachment from the domestic service.

1.04.3 Irrigation Service – An irrigation service is defined as a water service to provide water for irrigation

of vegetation, and frost proof yard hydrants. An irrigation service shall not be used as a source to

fill swimming pools or for any other sanitary or potable use and none of the water shall be

discharged into the sanitary sewer system. An irrigation service can be installed by performing a

separate tap of the water main or by separating the existing service line (<= 1” domestic service)

into a domestic meter and an irrigation meter. Assuming the domestic service and the irrigation

service are utilized at different times, there will be no effect on the water pressure.

1.04.4 Combined Residential Domestic / Fire Service – A combined residential domestic / fire service is

defined as a fire sprinkler system that complies with the most current version of NFPA 13R

combined with a domestic service for residential customers.

1.04.5 Combined Commercial Domestic / Fire Service – A combined commercial domestic / fire service

is defined as a commercial limited area fire sprinkler system that complies with the most current

version of NFPA 13R and 13D, combined with a domestic service for commercial customers.

1.04.6 Livestock Service – A livestock service is defined as a water service to provide water to livestock

and other animals, poultry, etc. that are domesticated. A livestock service shall not be used as a

source to fill swimming pools or for any other sanitary or potable use and none of the water shall

be discharged into the sanitary sewer system. The private service piping for a livestock service

shall provide backflow protection in accordance with Louisville Water’s backflow prevention

standard.

1.04.7 Wholesale service – A wholesale service is defined as a water service to provide water to a

customer for resales purposes, while in agreement with service rule 1.05.6, and 105.7.

2022 Service Rules and Regulations Louisville Water Company

1.05 Location of Meter / Responsibility for Service

1.05.1 General - The Company shall own and maintain the water meter, meter vault and service line

from the water main to and including the meter assembly in the meter vault and the tailpiece

extending to the customer's property service connection. The customer shall own and maintain

the private service line between the property service connection and the premise. In addition, the

customer owns and maintains the union between the tail piece and the private service line.

All persons who are not Louisville Water employees or authorized contractors are prohibited from

accessing the meter vault and its contents including the meter and its appurtenances except in case

of an emergency shut off of the service. The Company may pursue legal action against anyone

illegally accessing its facilities, including the meter vaults.

Location of Meter / Service - Meters shall be generally installed in vaults located in the right-of-

way or public easement area as near as possible to the customer's property line or easement line.

Water service pipe and meters shall generally be installed so that the service pipe and meter are

perpendicular to the water main. Given this limitation, and except as set out below, the water

service pipe and meter installed by the Company shall be at a location agreed upon between the

Company and the applicant. Where service is installed, the location shall be as designated below

(in order of priority):

a. Location of previously installed service sleeve, or

b. For a corner lot, in the middle of the premise on the side of the property closest to the water

main (no stake card present and no previously installed service sleeve) unless customer has

agreed to pay for actual cost of installation, or

c. Location of private service lines installed prior to the meter / service installation (if no

previously installed service sleeve), or

d. Location of stake card, provided by the Company, attached to a stake, placed on site by the

applicant, or

e. The location marked on the service application (if no stake card present).

The cost of relocation of service pipes, vaults, and meters in a different location than the one

determined by the Company as set forth above shall be paid by the applicant.

It shall be the responsibility of the applicant to maintain the card and stake at the proper location,

if applicable, until the service pipe and meter vault are installed. Service installation is dependent

on site accessibility to the property. Assuring accessibility is the responsibility of the applicant.

The Company reserves the right to locate services without agreement where necessary. The

Customer is responsible to connect and maintain the service connection. The applicant shall

establish final grade at the location proposed for the meter vault prior to making application for

water service. The applicant shall be responsible for the cost of any grade adjustment of the meter

vault and/or service line that must be made after installation by the Company

Special Interior Meter Location - Where it is necessary to install an interior meter within a

customer's premise, ample and suitable space, free from exposure to frost, shall be furnished to the

Company by the owner of such premise wherein to set, read, and repair the meter. This space at

all times shall be accessible to the Company's employees, which shall be unobstructed by the

customer. Any damage incurred as a result of leakage within the customer's premise shall not be

the liability of the Company. Where a meter is located within the customer's premise, the customer

shall have available near the meter, facilities or equipment to drain or remove any water leakage

from the meter or Company facilities.

2022 Service Rules and Regulations Louisville Water Company

1.05.2 Length of Service - Service lines greater than 100 feet in length from the main to the meter must

be approved by the Chief Engineer or designee.

1.05.3 Maximum Service Size - The maximum service size shall be one pipe size smaller than the main,

unless approved by the chief engineer or designee.

1.05.4 Customer / Applicant Obligation for Facilities - The applicant shall furnish and install the

necessary private service line from the property line or easement line to the place of consumption

and shall be responsible for the maintenance of the same.

1.05.5 Private Plumbing Facilities Maintenance Obligations - All premise owners, tenants, and customers

shall keep their private service lines, water shut-off valves, and other plumbing fixtures in good

repair and operating condition to preclude the public water supply from adverse risk or to prevent

any contamination of the public water supply.

1.05.6 Re-Sale of Water - Water delivered by the Company shall not be resold except as permitted by the

Company pursuant to a written agreement, including an application under Rule 1.06.3 to utilize a

fill station.

1.05.7 Use of Water - Water delivered by the Company shall not be used in any way that might conflict

with Company or governmental rules and regulations.

1.05.8 Enlargement and Relocation of Service Line - Customer will be required to pay for the installation

of a new service and the cost to discontinue the old service when the customer requests relocation

or enlargement of an existing service line.

1.05.9 All existing services within a development will be discontinued at the customer’s expense upon

new service installation to comply with Rule 1.04.

1.06 Meter Measurement Required of All Water Supplied

1.06.1 Meter Requirement - All water supplied by the Company shall be measured by meters installed

and maintained by the Company for that purpose. Louisville Water Company shall issue all meter

and service installation materials.

1.06.2 Unauthorized Water Usage - If it is determined that water is being used or taken without being

properly metered by a Louisville Water device or if an unauthorized bypass of a meter has been

installed, the Company, at its discretion, will bill the responsible customer for the estimated

amount of water usage. If the unauthorized water use continues or poses a threat to the safety of

the public water supply, the Company may disconnect, confiscate the unauthorized device, and

discontinue the water service to the premise as provided in Rule 1.13.2 with or without notice to

the customer. The Company reserves the right to prosecute water theft in addition to the above

actions.

1.06.3 Water Fill Stations - The Company may, at its option, provide fill stations to supply water to mobile

tanks. Those wishing to use such fill stations must pay via credit card at the fill station pump. Fill

stations must not be used for lawn chemical service, mobile vehicle washing or other activities

involving potentially toxic or hazardous materials due to the following, which includes but is not

limited to, potential hazards of back-siphonage and introduction of toxic or foreign materials into

public water system.

2022 Service Rules and Regulations Louisville Water Company

1.07 Water Service Through Private Easement

1.07.1 Meter Application Criteria – Upon application for water service the Company may allow such a

property to receive metered water service through a private service line installed within a private

water easement so long as the following criteria are met:

a. Where installation of a public water main is determined by the Company to not be in its best

interest.

b. The property does not front a publicly dedicated right-of-way or public water main extension.

c. The applicant obtains a letter from the appropriate fire district indicating that the fire protection

district has no objection to the installation of a domestic water service and service line to the

property in question, and that the installation of a public fire hydrant is not required.

d. The maximum length of the private water service line generally shall not exceed 1,000 linear

feet, measured from the Company's meter, and shall generally not exceed 50 feet in elevation

change from the Company’s meter to the structure unless system capabilities can support a

longer private service line of such a private water service installation or the applicant formally

commits to installation of private water service improvements as required to maintain adequate

pressure and flow.

e. The property proposed for service must have available to it a minimum 10 feet wide perpetual

private water service easement that permits the installation, maintenance, repair or replacement

of a private water line extending from a public water main to the benefited property. A copy

of the duly recorded easement document must be provided to the Company prior to application

for service. The easement shall be that form approved by the Company.

f. The property proposed for service must have a recorded declaration of restriction limiting

further development until it abuts a public right-of-way or it abuts a water main extension

within a publicly dedicated easement. A copy of the recorded declaration, in a form

satisfactory to the Company, must be provided to the Company prior to the application for

service.

1.07.2 Approval - Each written request for water service through a private easement will be reviewed on

a case-by-case basis and be subject to approval by the Chief Engineer or designee.

1.07.3 Failure to Comply – Failure of the applicant to comply with the requirements set forth under

Section 1.07.1 as approved under Section 1.07.2 is subject to water service shut off or

discontinuance at the sole discretion of the Company with notice to the applicant.

1.08 Temporary Service / Meters

1.08.1 Application for Temporary Service - Upon proper application for a temporary service, the

Company may issue a temporary service account and a temporary meter service assembly for use

by the applicant in accordance with these rules. Applications for temporary services will not be

accepted for lawn chemical service, mobile vehicle washing or other activities involving

potentially toxic or hazardous materials due to the following, which includes but is not limited to,

potential hazards of back-siphonage and introduction of toxic or foreign materials into the public

water system. If the temporary service is used for fill tanks, vessels, or impoundments, the

customer must operate the temporary service with a Reduced Pressure Zone (RPZ) assembly back

flow prevention device or air gap between the temporary meter service assembly and the receiving

tank, vessel, or impoundment.

1.08.2 Temporary Account Period - Temporary service account permits may be issued for periods of up

to twelve months in length, and the Company may issue renewals upon expiration of the permit

period. At no time may a temporary service compromise the performance and safety of the public

2022 Service Rules and Regulations Louisville Water Company

water supply system. Therefore, a permit may be issued for shorter durations and may be

terminated prematurely if, in the judgment of the Company, the temporary service compromises

the public water supply system. All temporary service meters must be returned for testing and

maintenance at the end of the permit period.

1.08.3 Temporary Service Attachments - Upon approval by the Company, temporary services will be

attached only to existing services or fire hydrants. When a fire hydrant is utilized, the permit shall

be for only the fire hydrant specified by the attachment number on the application, and the

applicant shall give notice of use of that fire hydrant to the appropriate fire district. For certain

uses, such as road or pipeline construction, where more than one fire hydrant is involved, the

temporary service permit may be written to cover multiple fire hydrants. The hydrants to be used

must be specified by attachment numbers on the application. In case of multiple fire hydrants use,

exact locations and addresses are required, and the applicants shall give notice of use to the

appropriate fire districts. This will allow Louisville Water to inspect the fire hydrants for damages

and proper functionality. The Company reserves the right to bill the customer for repairs and

damages to any fire hydrants that are being utilized for the temporary service application.

1.08.4 Fees / Charges - Temporary services are subject to the following:

a. water service charge

b. daily service fee

c. deposit (partially refundable) covering the cost of the meter assembly

d. water consumption charge

e. damage fees for the temporary service meter assembly/ fire hydrant

f. Unreturned meter fee

g. Missing Read fee

The refundable deposit will be returned, less deductions for unbilled water consumption and any

damage to the meter assembly, fire hydrants, and / or appurtenances used, or any unpaid balance

on account.

1.08.5 Company Removal of Temporary Service - The Company reserves the right to suspend or

terminate temporary service permits and to remove, retrieve or confiscate a temporary service

meter assembly, when necessary to enforce Company service rules when it otherwise endangers

the public water supply, or for non-payment.

1.09 Multiple Unit Premises

1.09.1 General - Only one building shall be supplied with water from each service attachment, unless the

buildings to be supplied with water are on the same property and owned by the same entity which

shall be responsible for all water bills.

1.09.2 Multiple Units - Apartment houses, condominiums, patio homes, shopping strips, or other similar

structures owned by one entity, and each having their own distinct physical address, may have

separate service attachments. Each tenant will be responsible for their own water bill. Individual

service attachments may be supplied to each premise provided that each individual unit has a direct

perpendicular pathway to the public right-of-way or public easement that contains a water main.

Individual service connections will not be installed for premises above or below the ground floor.

1.09.3 Master Meters - Master Meters shall be permitted to supply water to multiple premises, tenants,

persons or structures providing the following criteria are met:

2022 Service Rules and Regulations Louisville Water Company

a. Buildings or structures front dedicated right-of-way, roadways, or Company easements in

which a public water main could be installed.

b. One person or entity will pay the water bill.

c. System Development Charge (SDC) will apply to all retail Master Meters.

d. The Master Meter application must meet the criteria outlined in Section 1.02.2.

e. The applicant must supply a site plan approved by the appropriate Fire Protection District.

f. Master Meters of 3 inches and larger shall be reviewed for approval by the Chief Engineer or

Designee.

g. SDC will not apply to Master Meters installed to supply Kentucky Division of Water (KDOW)

regulated water distributors.

h. Master Meter private piping will not cross any public water main and shall not be located closer

than five feet to a public water main other than the connection.

1.10 Customer's Shut Off Valve

Water customers, tenants or owners of premises into which service pipes have been introduced or

installed are forbidden to operate the Company's shut off valves. Louisville Water recommends

that customers, at their expense, install shut off valves on every service line located at the first

suitable point beyond the property or easement line. This shut off valve is to enable the owner,

tenant, or customer to turn off the water in case of accident to the pipes or water fixtures on the

premises.

1.11 Plumber License and Instructions

1.11.1 Plumbing Permit - Plumbers licensed under the laws of Kentucky, and with proper permits shall

install pipes and fixtures or make connections or repairs to facilities of water customers of the

Company and then only in accordance with the rules and regulations of the Company and all

applicable local and State plumbing codes.

1.11.2 Homeowner's Permit - Homeowners, with proper permits, may install pipes and fixtures or make

connections or repairs to facilities only on their own property and then only in accordance to the

rules and regulations of the Company and all applicable local and State plumbing codes.

1.11.3 On / Off Status of Service - Only Company representatives may change the status of a water

service attachment or service meter.

1.12 Risk of Loss / Liability

1.12.1 Loss, Damage, Injury - The Company will not be responsible or liable for any loss, damage, or

injury to the customer or third parties arising out of or relating to the introduction of its water

service onto a customer's premises.

1.12.2 Responsibility - Where the space beneath the sidewalk from the curb line to the property line has

been appropriated to private use, the piping fixtures and water conveyed therein, and any such

damage occasioned thereby, becomes the liability of such owner, occupant, tenant, or water

customer.

1.12.3 Before You Dig (BUD) - Kentucky 811 - Prior to excavating, all persons must comply with the

requirements of State and local law for locating and marking underground facilities. To reach

Kentucky 811 or BUD dial 811.

1.12.4 Damage to Company Facilities - In all cases where any Company facilities are broken, cut,

2022 Service Rules and Regulations Louisville Water Company

otherwise damaged or caused to leak by an act or omission performed by any third party, the

Company shall charge a fee, make a claim and pursue collection against the responsible party(ies)

for any and all actual costs for repairing and restoring the facility including, but not limited to, the

cost of physical repairs, flushing the water supply system, and chemical treatment.

1.13 Cancellation of Service

1.13.1 Cancellation by the Customer - When a customer wishes to cancel the water service account in

their name, it shall be the customer's responsibility to notify the Company at its office by oral or

written order to terminate such service. Only then will the customer be relieved of the

responsibility for any future charges for water used through such service.

1.13.2 Cancellation by the Company - The Company may terminate water service without notice if it

poses a threat to the safety of the public water supply or if it is received through an illegal and / or

unauthorized connection. The Company may terminate a water service with prior notice for

nonpayment of charges and fees.

1.13.3 Cancellation of Fire Service - In addition Fire Service accounts cannot be cancelled and water

turned off unless written permission is granted to the Company from the appropriate fire

department.

1.14 Account Responsibility

1.14.1 Customer’s receipt of water service from Louisville Water is subject to and governed by the terms

of these service rules and regulations. Customer’s receipt of such service further constitutes

customer’s acceptance of financial responsibility as outlined in these service rules and regulations

as well as the "Louisville Water Company Tariff, Rate Schedule, and Customer Fees and Charges".

By Providing your phone number for your Louisville Water account, you consent to receive

prerecorded calls and SMS messages containing information about your Louisville Water Service.

This can include, but not limited to: outages and disruption of service, field work, subsidies, billing

reminders, etc. Louisville Water will never sell your information or use your phone number for

any solicitation. You can opt out of the notification by contacting Louisville Water.

Receipt service requires:

a. LWC requires a valid and current social security number, Individual taxpayer Id number, or an

Employer Identification number

b. Applicant must have no delinquent balances on any account with Louisville Water

c. Service will not be established at properties in which the property owner has an unpaid balance.

d. LWC reserves the right to request documentation to establish service. Such documentation

includes but not limited to identification, credit worthiness, and right to possession of property.

Service Deposit – A refundable Service Deposit approved by the Board of Water Works will be

charged to and may require payment prior to water service connection, or shown on the first billing

statement for all customers applying for residential, commercial or industrial water service who:

a. have had a previous account in bad debt or bankruptcy status; or

b have had a service disconnected due to non-payment within the last three years of service.

c have a Utility score below the threshold set by the customer service management team.

2022 Service Rules and Regulations Louisville Water Company

The Service Deposit will only be refunded when:

a. a customer closes the account and a sufficient credit balance exists to cover the full amount or

a portion of the service deposit after the final billing of the account; or

b. the customer has paid their bill in a timely manner for three consecutive years.

1.14.2 Late Payment Fee – Payment of bills are due monthly or bi-monthly by the end of the business

day on the due date displayed on the water bill. If a customer refuses or neglects to pay the bill by

the due date indicated, late fees approved by the Board of Water Works will be applied to the total

outstanding water balance and shall be immediately due and payable.

1.14.3 Delinquent Bills - If any consumer becomes delinquent in the payment of water bills, as set in the

preceding paragraph of this rule, the Company will, at its discretion and within the guidelines set

out below, turn off the water service at the premise(s) or any future premise, on which such

delinquency exists. The Company reserves the rights to refuse reconnection of service at such

premise(s) until the customer has fulfilled his obligations as herein set out.

1.14.4 Overdue Notice - Not less than twenty-one (21) days after the original billing, any customer who

has failed to pay the amount due shall be notified that the account is overdue, and setting forth a

day, not less than seven (7) days after the date of notification, water service will be turned off.

Immediate disconnection could result from broken payment arrangements, service found on, or

return payments.

1.14.5 Responsibility for Service Found On Usage - In cases where a service is found on unauthorized

(SFO), the owner will be held responsible. LWC will back bill up to 60 days for tenants who

request and qualify for service.

1.14.6 Account Consultation Officer- The President shall appoint one or more of the Company's

employees to act as Account Consultation Officer to hear concerns by customers relative to

disputed water bills.

1.14.7 Account Consultation- Promptly upon receipt of notice from any customer that a bill is disputed,

said customer shall be notified of the date of the Account Consultation which shall be held at the

offices of the Company. At this consultation the Consultation officer shall carefully consider all

of the evidence presented and, at the conclusion of the hearing, shall advise of the Company's final

determination as to the amount due. If for any reason, the Consultation officer is unable to render

a decision at the conclusion of the account consultation, he / she will mail the customer a written

notice of his / her decision as soon as possible. The Consultation officer shall have the authority

to reaffirm the amount owed, to excuse all or any part of the amount owed, or to refund or apply

credit to the account. The Consultation officer’s decision shall be the final decision of the

Company.

1.14.8 Shut Off After Account Consultation - If the decision of the Consultation officer is to the effect

that some amount is still owed to the Company, and that amount is not paid within seven (7) days

after either a decision of the Consultation officer at either the conclusion of the consultation or

receipt of written notice of the decision to the customer, the Company may turn off said customer's

service without further notice.

1.14.9 Notice of Shut Off and Non-Payment Fee – Prior to turning off water service for non-payment, the

Company will attempt to contact customers through a final bill notice to the address listed on the

account and if possible through other means that may include a phone call, letter, email or text

2022 Service Rules and Regulations Louisville Water Company

(dependent on available customer information). If the customer’s payment is not received within

7 days of the due date the service could be scheduled for disconnection. The customer will be

charged a disconnect fee per premise on the account upon completion of the disconnection field

activity or before customer is reconnected.

1.14.10 Restoring Services – In order to restore water service that has been turned off due to non-payment,

the customer must pay the full account balance including any fees prior to restoration. The

restoration of a property that has been KVC’d will take up to 7 to 10 business days.

1.14.11 Returned Check or Electronic Payment Fee - Should any check, chargeback, or electronic e-

payment received by the Company from a customer for water service be returned by the bank upon

which it was drawn, the Company will charge the customer the Board approved charge then in

effect, which, together with the full amount for which the payment was presented, must be paid

immediately or water service will be discontinued. In the event such water service is discontinued

because of this rule the water service will not be restored until the charges referred to in section

1.14.9 have been paid in addition to the charges imposed by this paragraph.

1.14.12 Combined Billing - Where more than one metered service serves a single premise, and

a. service pipes are not inter-connected within the customer’s premise, and

b. The entire consumption within the premise cannot be supplied by any one existing service, and

c. any one existing service cannot be enlarged to supply the full requirement of the premise

because of the capacity of the Company’s grid system, and

d. with prior approval by the Company the readings of the meters on these services may be

combined for computing the bill for water used at the premise.

If the premise is also billed for waste water volume that is based on total water consumption, this

combined meter reading will be used for computing the waste water volume charge. When waste

water volume charges are based on water consumption, the same meter reading calculation method

must be used in computing each charge on any one bill.

The foregoing provisions notwithstanding combined billing cannot be permitted if the charge for

water registered by one of the meters is exempt from the State Sales Tax while the charge for water

registered by a second such meter is not so exempt.

1.14.13 Fees for Activities and Services Performed by Company - Fees for activities and services

performed by the Company (including but not limited to shut-off and/or restore service, service

found on unauthorized (SFO), tampering fees, towing fees and leak detection) are approved

annually by the Board and are determined from the average actual costs of performing these

services. The Company may also establish fees for other services based on the actual cost of the

service and approval by the Board.

1.14.14 Cross Connection Control Charge - The Company may charge a fee for monitoring services to

prevent or minimize the risk of cross contamination to the public water supply pursuant to Rule

2.0.

1.14.15 Existing Service Activation Fee - When a water service is activated at an existing service location

other than for non-payment of water bill as outlined in 1.14.9, the Company will charge the

customer requesting the service activation the Board approved charge then in effect for activating

the service.

2022 Service Rules and Regulations Louisville Water Company

1.14.16 Existing Service Deactivation Fee - When a water service is deactivated at an existing service

location other than for non-payment of water bill as outlined in 1.14.9, the Company may charge

the customer requesting the service deactivation the Board approved change then in effect for

deactivating the service.

1.14.17 Back billing and Billing Refunds – In the event the Company determines accounts have had usage

but have not been billed or have been underbilled, the Company may bill retroactively for the

period identified as not being billed or being billed for less usage than actual. Back billing for

usage that was not billed or under billed will not exceed 2 years from the date the Company notifies

the customer. In the event of an over billing, the Company may issue refunds for up to two years

of overcharging less actual bills incurred. In situations involving sales tax or other extenuating

circumstance, refunds may be made up to four (4) years with approval of the Consultation officer

as described in 1.14.7. If data is not available for under billing or over billing, the Company may

estimate the amount to be debited or credited to the customer based on historical usage.

1.14.18 Elevated Service Charge: All customers receiving service at Hydraulic Grade Line (HGL) other

than elevation 660 feet mean sea level shall pay an elevated service charge as established by the

Board of Water Works and published in the tariff because service to those customers requires

additional energy transfers in the form of booster pumping or, in some cases, booster pumping

followed by pressure reduction.

1.14.19 Properties that have a history of many and/or large unpaid account balances may be determined to

be “at risk” properties by Louisville Water. Louisville Water may require services for such

properties to be in the name of the owner per property valuation administrator.

1.14.20 Billing dispute, zoning changes, or adjustment request must be received within 180 days of issue.

1.14.21 Louisville Water jointly invoices and receives payments for and on behalf of both Louisville

Water and Louisville Metropolitan Sewer District (MSD). As such, Louisville Water

applies customer proceeds received in payment of the foregoing service to customer

accounts based on the proportionate percentage of the balance owed to Louisville Water

and the Metropolitan Sewer District according to the following schedule:

a. LW Other Charges (Non-Pay Fee, Returned Check Fee, etc.)

Over 120 days

b. Water (includes Temporary Service Surcharge), MSD Sewer Metered, MSD Drainage,

MSD Sewer Unmetered, Surcharge Contract, Oldham County, Bullitt County

Sanitation, Drainage

91-120 days

c. Water (includes Temporary Service Surcharge), MSD Sewer Metered, MSD Drainage,

MSD Sewer Unmetered, Surcharge Contract, Oldham County, Bullitt County

Sanitation, Drainage

61-90 days

d. Water (includes Temporary Service Surcharge), MSD Sewer Metered, MSD

Drainage, MSD Sewer Unmetered, Surcharge Contract, Oldham County, Bullitt

County Sanitation, Drainage

2022 Service Rules and Regulations Louisville Water Company

31-60 days

e. Water (includes Temporary Service Surcharge), MSD Sewer Metered, MSD Drainage,

MSD Sewer Unmetered, Surcharge Contract, Oldham County, Bullitt County

Sanitation, Drainage

Current Charges

f. Water (includes Temporary Service Surcharge), MSD Sewer Metered, MSD Drainage,

MSD Sewer Unmetered, Surcharge Contract, Oldham County, Bullitt County

Sanitation, Drainage, Payment of optional warranty, insurance or other service charges.

1.15 Fire Protection Services & Charges

1.15.1 General - Services for fire protection, standpipes, and automatic sprinklers will be installed at the

expense of the applicant.

1.15.2 Use of Fire Service - Persons or applicants desiring such services shall be granted them provided

the intended use is for preventing or extinguishing fires or testing the fire protection system and

shall not be used as a potable water supply. In the event of any unauthorized use, the Company,

at its option, may discontinue the service or services or install meters, with prior notice, at the

expense of the customer, to control the entire flow on such services. Should water be used for any

other purpose, such usage will be billed at the established retail water rates.

1.15.3 Fire Service Charges - The charges for fire protection service will be made in accordance with the

"Louisville Water Company Tariff, Rate Schedule, and Customer Fees and Charges" and will be

billed monthly or as the Company may hereafter designate. The charge for water used, estimated

from the meter registration, will be billed in addition to the scheduled monthly service charge at

the established water rates without application of the minimum bill or allowable use. Water used

for extinguishing fires or testing the fire protection system will not be billed provided a certificate

of such use from a fire insurance underwriter or the fire department is submitted to the Company.

Fire services will continue to be billed to the owner per PVA, unless the service is discontinued in

accordance with 1.13.3. Unpaid fire service charges may result in a lien on the property.

1.15.4 Combined Residential Domestic / Fire Services – Residential customers may install a fire

protection sprinkler system in combination with their domestic service provided:

a. Sprinkler system complies with the most current version of NFPA 13D.

b. All private plumbing complies with State and local plumbing codes.

c. A Double Check Valve assembly (A.S.S.E. 1015) or a RPZ assembly (A.S.S.E. 1013) is

installed in accordance with 2.01.4.

d. The domestic / fire service provides potable water to residential single-family or duplex

dwellings only.

e. Designation of Combined Residential Domestic / Fire Service must be made at the time of

application for water service to receive consideration for billing as outlined in 1.15.3.

f. The residential domestic / fire service shall not exceed 1 1/2-inch in nominal size.

g. No hydrants, public or private, are permitted to be connected to residential domestic / fire

private service lines, plumbing or piping.

h. Any variance to the requirements of this section must be approved by the Company’s Chief

Engineer or designee.

2022 Service Rules and Regulations Louisville Water Company

1.15.5 Combined Commercial Domestic / Fire Services - Commercial customers may install a limited

area fire protection sprinkler system in combination with their domestic service provided:

a. All private plumbing complies with State and local plumbing codes.

b. Fire sprinklers installed by a Plumbing Contractor, as required in the NFPA 13R and 13D, or

a limited area sprinkler system installed by others will have a branch line serving a sprinkler

head, or heads, from an interior, domestic supply line with a Double Check Valve assembly

(A.S.S.E. 1015) or a RPZ assembly (A.S.S. E. 1013) located on the branch line as close as

practical to the supply line tee.

c. Shutoff valves on the backflow prevention device must be supervised in the open position.

d. The installing party is responsible for sizing the water service line and meter to adequately

supply the fire demand and domestic requirements.

e. Designation of Combined Commercial Domestic / Fire Services must be made at the time of

application for water service or prior to installation of the limited area fire sprinkler system to

receive consideration for billing as outlined in 1.15.3.

f. No hydrants, public or private, are permitted to be connected to the commercial domestic / fire

service private service lines between the meter vault and the interior of the building.

g. Combined Commercial Domestic / Fire Services may only be installed on commercial

domestic services that are a nominal size of 1-inch, 1½-inch and 2-inch.

h. Any variance to the requirements of this section must be approved by the Company’s Chief

Engineer or designee.

1.16 Estimating of Consumption

1.16.1 Estimated Bill - In the event a Company representative or hired contractor representing Louisville

Water is unable to obtain a read from a customer meter for any reason, the Company will calculate

an estimate of the consumption registered by that meter since the date the meter was last read. The

customer will receive a bill calculated on the estimated consumption. The bill will be treated by

the Company as if the reading of the meter had actually been determined visually or electronically.

The Company will make every effort to ensure that a customer’s water consumption is not

estimated for more than two consecutive bills when the consumption estimation is due to issues

that are Louisville Water’s responsibility to correct. Examples of situations that prevent Louisville

Water from reading the meter include, but are not necessarily limited to, mud in the vault, dial

maintenance, or a service that needs to be raised. When consumption estimation is caused by

issues outside Louisville Water’s control and reasonably within the customer’s control, the

Company will attempt to contact the customer to explain the need to access the meter and that bills

will be estimated until the issue(s) is resolved. Examples of situations that prevent Louisville

Water from reading the meter but are outside of Louisville Water’s control would include, but are

not limited to, construction, parked car, brush over the meter vault, vicious animal(s), or other

obstructions.

1.16.2 Inaccurate Meter - When a meter is found to be inoperative and does not correctly register the

amount of water passing through it, the Company will calculate an estimate of the consumption

registered by the meter since the date of the last accurate meter reading and prepare a bill based on

the estimated usage. The bill will be treated by the Company as if the meter had been correctly

registering the water usage.

2022 Service Rules and Regulations Louisville Water Company

2.0 CROSS CONNECTION AND BACKFLOW PREVENTION

Backflow Prevention – Backflow prevention is required to protect the public water supply from

contamination. All costs associated with the Cross Connection Control program including the

installation, maintenance, testing and monitoring of the backflow prevention device are the

responsibility of the customer. The Company requires a test on initial installation and annually

thereafter. The backflow prevention device test report must be submitted to the Company Cross

Connection Control Department.

2.01 Backflow Prevention, Foreign Supplies, Existing Water Service, and Dual Service Supplies

2.01.1 Backflow Testing - A Company-recognized certified technician must test the backflow device and

submit test results to the Cross Connection Control Office for Company records. A Company-

recognized certified technician is one who has completed and passed a backflow prevention

training course presented by

• University of Southern California Foundation for Cross Connection Control and Hydraulic

Research,

• American Backflow Prevention Association,

• University of Florida Training, Research, Education, Environment, Occupation (TREEO)

Center,

• Local Plumbers and Pipefitters #502,

• Plumbing Heating Cooling Contractors Association,

• Bluegrass Cross Connection Control Association,

• Jefferson Community and Technical College,

• or another training course if the certified technician provides training documentation and proof

of completion to the Company Cross Connection Control Office that, in the decision of the

Company, meets the requirements set forth for the previous Company-recognized backflow

prevention training programs.

The Company will provide a notice once a year to the customer that the backflow device on the

service line is required to be tested.

2.01.2.1 The following are the Company-approved backflow prevention assembly requirements:

a. RPZ valve assembly (A.S.S.E. 1013); Pressure Vacuum Breaker (PVB) valve assembly

(A.S.S.E. 1020); Double Check (DC) valve assembly (A.S.S.E. 1015); Physical air-gap of not

less than 6 inches or 2 times the feed pipe diameter, whichever is greater.

b. All assemblies must be installed to meet or exceed manufacture’s recommendations.

c. All commercial and industrial water services shall be required to have a (RPZ) valve assembly.

d. All irrigation services shall be required to have a RPZ or a (PVB) valve assembly

e. Apartment buildings and multi-family structures that are served with one metered service that

are three-plex or greater shall be required to have a (DC) valve assembly.

f. All RPZ or DC valve assemblies installed on the domestic water service line as a main

containment device shall be required to have a strainer before the backflow device. The

strainer must be FDA approved for potable water.

g. Where a by-pass has been installed around a main containment device, a backflow preventer

must be installed on the by-pass. The by-pass backflow device shall be equivalent to the type

required on the main service.

h. Any customer that utilizes a booster pump must install a RPZ valve assembly before the pump

i. All livestock services shall have a DC or RPZ valve assembly as required by the Company.

2022 Service Rules and Regulations Louisville Water Company

2.01.3 Existing Water Service – Commercial customers with an existing water service that poses a hazard

to the public water supply or that are re-plumbing their water service must install, at owner’s

expense, a Company approved backflow prevention device. A site visit by company staff may also

be utilized in the process of identifying customers that are required to have backflow prevention.

The customer may be contacted by letter that indicates the Company does not have a record of a

backflow prevention device located at the premises. The customer will be given a time frame by

the Company to complete the work and to send the test results to the Cross Connection Control

Office.

2.01.4 Fire Service Backflow Protection – Backflow protection devices will be installed in accordance

with the following unless otherwise specified under 1.15.4, 1.15.5, or 2.01.1.

a. Any fire protection system will have a detector check valve installed by the Company at the

property line. A (DC) valve assembly is required to be installed by the contractor on the

customer’s property.

b. Any fire protection system that presents a hazard to the public water supply shall be required

to have a RPZ valve assembly. This includes system with:

• A fire pump (requires approval by the Chief Engineer or designee)

• A chemical fire protection system

• Any other source of water. i.e. holding tank

• Or any condition that presents a health related risk to the public drinking water supply

2.01.5 Combined Residential Domestic / Fire Service and Combined Commercial Domestic / Fire Service

– Any private fire sprinkler system that is served by the domestic water piping (typically residential

and small commercial use), shall be required to have a DC or RPZ valve assembly installed on the

domestic water branch serving the fire sprinkler heads.

2.01.6 Foreign Supplies – Whenever a customer utilizes a well, cistern, or other water source for

emergency backup to the Company water supply, the internal piping must be separated from the

Company supply by a RPZ valve assembly or a physical air-gap

2.01.7 Dual Services – Where dual service supplies are deemed necessary and are approved by the

Company’s Chief Engineer or designee, the private service lines serving water from the

Company’s public water supply system must be protected by a RPZ valve assembly. A dual

service is specifically defined as two or more of the same type of service connections (domestic,

fire, irrigation, etc.) as set forth under 1.04 from the public water supply to a common structure.

2.01.8 All private containers that store water (including fountains, swimming Pools, aquariums and other

water storage but excluding water heaters) must be constructed so that the inlet water supply

serving the installation must be separated from the Company supply by a RPZ assembly or a

physical air-gap

2.01.9 Right to Inspect –Louisville Water reserves the right to inspect all private plumbing for those water

services described in Rule 2.01.1 to verify compliance with the requirements of Rule 2.012 during

normal business hours or as arranged with the customer by Louisville Water

2.01.10 Failure to Comply – Failure to comply with any of the cross connection control rules set forth in

this section will result in the water being turned off at the discretion of the Company, with notice.

The private service lines must be inspected and approved by the Cross Connection Control Office

before the water supply will be restored.

2022 Service Rules and Regulations Louisville Water Company

2.01.11 Exceptions – Variances to the requirement set forth under Section 2.0 CROSS CONNECTION

CONTROL AND BACKFLOW PREVENTION must be approved by the Chief Engineer or

designee.

3.0 WATER MAIN EXTENSIONS FOR RETAIL SERVICE AREA

3.01 General Policy for Extensions

3.01.1 General - The Company will extend water mains upon proper application to serve an applicant, a

customer, or customers, within its retail service area, provided that, in the sole opinion of the

Company, the extension is feasible, practical, adheres to good operating practice, where such

extension will not affect the adequacy, quality, pressure or quantity of service to existing customers

and will not otherwise impair the service or financial structure of the Company. Extensions will

be in accordance with the service rules and with the express approval of the Board of Water Works

except that the President, Chief Engineer, or designee may approve extensions which comply with

these rules where the contract cost to the Company does not exceed the then current contract

authorization level delegated to staff.

3.01.2 Extension Methods - There are recognized methods of extending mains depending on the

circumstances:

a. Tapping Fee Method,

b. Refunding Method,

c. Two-Thirds Majority Method,

d. Apportionment Warrant Method, and

e. Rebating Method.

3.01.3 Extension Approval - No application for a water main extension shall be construed as binding

upon the Company until it has been approved as provided herein and signed by the Chief Engineer

or designee. Any deposit made with an application shall not be construed as an acceptance thereof;

and the Company expressly reserves the right to return said deposit at any time prior to its

acceptance and approval less expenses incurred by the Company on said application as

hereinabove set out.

3.01.4 Compliance with Applicable Rules and Regulations; Contract Required - No application for water

main extensions shall be approved by the Company until the applicant has entered into a contract

with the Company and has furnished satisfactory evidence of full compliance with all pertinent

laws, rules, and regulations, including providing an approved plat of any proposed subdivisions

together with construction plans, waste water drawings, and fire protection district approved fire

hydrant location plans.

3.01.5 “Tap” Defined - For the purposes of Service Rule 3, a tap is defined as a separately metered and

billed service connection. An extension of the water main by the Company or a third party shall

not be considered as a tap.

3.01.6 Company Extensions - The Company, acting on its own motion, may install mains, which in its

opinion are needed. Upon application, service connections may be made thereto, with the payment

of the applicable tapping fee at the time the main was installed.

3.01.7 Minimum Extension Length - The minimum length of a water main extension shall be to the far

2022 Service Rules and Regulations Louisville Water Company

property line for properties with public right-of-way or public water easement frontage 100 feet in

width or less, and to the midpoint of the property for properties with public right-of-way or public

water easement frontage greater than 100 feet in width.

3.01.8 Ownership / Control - After the installation of an approved extension, the extension shall become

the sole property, and be under the exclusive control and management of the Company, and the

Company shall have the right to make further extensions or to make connections thereto for other

extensions, for itself, and for other parties who may make proper application, all without the

consent or compensation (except where required by contract) of the applicant for whom the

original extension was made.

3.01.9 Main Extension Routing- The initial main extension to serve a new development shall be routed

through the development’s primary entrance, unless alternative routing is approved by the Chief

Engineer.

3.01.10 Rights-of-Way and Easements - No application for water main extension will be approved until or

unless the streets or roadways or other public easements in which they are to be installed have been

shown on a final subdivision plat intended for public dedication or easement and recordation or

legally dedicated to public use in compliance with the pertinent statutes, ordinances, rules and

regulations of the appropriate public agency, or accepted as dedicated public ways by

municipalities, County Fiscal Courts, Metro Councils or State agencies by recorded deeds, or

easement granted to the Company by the applicant, or easements are obtained for the Company

and such dedication or easement permits installation of public water service facilities. Where

mains are installed based on a final subdivision plat and the plat is subsequently changed, the

Company retains its right to recover from the developer any damages or costs incurred as a result

of such plat changes and the Company retains its right to require the developer to procure and

provide to the Company, at the developers sole cost and expense, any easements specified by the

Company for the main extensions and future main extensions.

3.01.11 Street Grade Restriction - The Company reserves the right to refuse to install or accept a water line

unless the final grade of the street has been established in accordance with government regulations.

In the event that the grade of the street changes after the water main is constructed, Louisville

Water reserves the right to not accept the water main.

3.01.12 Size of Water Main – In order to meet the water flow requirements set forth under the current Fire

Hydrant Ordinances (Bullitt County, Louisville Metro, and Oldham County) and for public water

supply operational needs, minimum pipe diameters are established as follows based upon the type

of development: residential 8-inch; commercial 12-inch; industrial 16-inch. Exceptions may be

approved by the Chief Engineer.

3.01.13 Betterment - The Company may install a pipe line of larger size than is required for service to the

applicant. In this event, the total project cost entering into the computing of the deposit and cost

to the applicant shall be on the basis of that required to install the size pipe required for service to

the applicant in accordance with all State and local requirements. The Company will bear the

incremental cost of materials associated with upsizing the mains up to and including 12 inches in

diameter. The applicant will bear the full cost for installations, labor, and rock excavation

associated with upsizing the mains up to and including 12 inches in diameter water mains. For

mains being upsized to larger than 12 inches in diameter, the Company will bear the incremental

cost of material, installation, labor and rock excavation associated with upsizing the water main.

2022 Service Rules and Regulations Louisville Water Company

This applies to all main extension methods.

3.01.14 Cost of Fire Hydrants - The cost of the water main extension shall include the cost of the fire

hydrants if such are required by the governing authority or local laws and regulations.

3.01.15 Elevated Service Area - If the request for water main extension cannot be approved because it is

in an elevated area requiring high pressure such that the distribution mains that would normally

serve the area cannot provide pressure for adequate service (minimum 40 psi) the Company may,

at its sole option, require a pumping station and / or storage tank as a part of the main extension

project at the applicant / developer's cost.

3.01.16 One Hundred Lot Rule – Water main extensions shall be equipped with a sufficient number of

valves so located that breakage or other interruption will not cause the shutdown of any substantial

portion of a main. At such time that 100 building permits have been issued for construction in a

subdivision development, a second water main into the development will be required to provide

water to the development as a secondary supply and shall be so located that breakage or other

interruption will not cause the shutdown of any substantial portion of the development. (Louisville

Metro Ordinance No. 187-2003). Subsequent water main grid-ties will be required with each

incremental 100 building permits issued in said subdivision.

Similarly, apartments or multi-unit premises exceeding 100 units will be required to have a

secondary water main supply. In situations where an apartment or multi-unit premises exceeding

100 units is supplied by a master meter, the public water main providing the master meter supply

shall be looped to provide two-way feed and sufficient valves to allow water to be supplied from

either direction.

3.02 Developer Tapping Fee Extension Method

3.02.1 Cost of Extension - When the request for a water main extension requires, at the sole decision of

the Company, installation of supply mains not located within the area to be served, the extension

applicant (including, but not limited to developers) shall pay the Company for the cost of

installation including, but not limited to charges and costs for labor, material, easements,

equipment, and engineering services for such system improvement. The applicant shall deposit

with the Company a check, or a certified irrevocable letter of credit from an institution on the

Company's list of approved institutions, equal in amount to the Company's estimated cost. Such

initial deposit, once accepted by the Company, shall not be subsequently substituted with another

form of payment. This deposit shall be made in advance of construction and, upon completion of

the work, final payment and / or refund shall be adjusted to the actual cost incurred by the

Company.

3.02.2 Design Standards - All main extensions installed by third parties pursuant to this rule shall be

constructed in accordance with Company design and construction specifications and inspected by

Company. The Company shall determine the size of water mains to be installed and payment for

the installation of the main shall be as stated in Rule 3.01.12.

3.02.3 Collection and Payment of Tapping Fees - An extension applicant may charge other applicants

wishing to receive water service along the tapping fee main extension a "tapping fee" as may be

authorized by the Company for the privilege of tapping said main extension for the purpose of

installing service connections to supply water to the property abutting. This tapping fee shall be

established at the time the main extension application is approved and should represent a fair

2022 Service Rules and Regulations Louisville Water Company

proportion of the cost of the main extension, in accordance with the regular Schedule of Tapping

Fees in effect at the date of acceptance of application for main extension, unless a higher amount

is approved by the Board of Water Works. The sum or sums, when approved by the Company,

shall be paid by the other water service applicants to the Company. The Company, after making

a record of same, shall annually pay such approved sum or sums to the applicant installing the

main extension or its assignee.

3.02.4 Waived Tapping Fee Privileges - The applicant, by written notice to the Company, shall have the

right to waive the tapping fees, in full or in part, to any person or persons including the applicant

itself. However, any or all tapping fees waived shall be considered by the Company as counting

toward the installation costs paid by the applicant and therefore, having been received and remitted

to the applicant and included in the total for the purpose of determining whether or not the applicant

has been refunded his installation costs.

3.02.5 Recovery Period - If within 20 years of the date the water main is placed in service, the aggregate

amount of tapping fees charged equals the amount paid by the extension applicant for the

construction of the main extension or improvement, without interest, then no further tapping fee

charges shall be collected and refunded to the extension applicant.

If the cost of installing the main is not fully recovered by the extension applicant within 20 years

from the date the main is placed in service, the right of the applicant to receive tapping fees from

third parties for the privilege of tapping said main cease 20 years after the date of installation of

the tapping fee main extension.

3.02.6 Acquired or Merged Systems - Customers to be served through systems acquired by or merged

with the Company shall continue to receive tapping fees as set out in the contract for installation

as of the date system is acquired or merged. All tapping fees for mains installed or under contract

after the date of acquisition are governed by the subsections of this rule.

3.03 Refunding of Installation Cost Extension Method

3.03.1 Application - When the request for a water main extension relates to a new development the

applicant/developer wishing to have the water main extended has the following options upon

depositing with the Company, either by check or an irrevocable letter of credit from an institution

on the Company's list of approved institutions, an amount equal to the estimated costs, as

determined by the Company, of any labor, material, equipment, easements and engineering

services:

a. entering into a contract with the Company for the Company to undertake all design and

installation work with reference thereto, or

b. entering into a contract with the Company permitting the developer to contract with a Company

prequalified installation contractor for the main extension installation work to be performed in

accordance with Company specifications and subject to Company inspection.

Upon completion of installation of the main extension, under either method, the actual cost

incurred by the Company shall be determined. If the actual cost is found to be less than the amount

deposited, the excess amount shall be refunded to the applicant. If the actual cost is determined to

be more than the amount deposited, then a supplemental bill shall be rendered to the applicant for

payment within 30 days.

The entire cost of fire hydrant installations shall be borne by the applicant/developer. The

applicant/developer's actual cost of the project shall be established as the maximum refund amount

2022 Service Rules and Regulations Louisville Water Company

permitted herein.

3.03.2 Refund for Projects Utilizing 5/8 x ¾” Services or with Confirmed Sizing for Larger Services -

After the project has been completed and placed in service, the Company shall refund to the

applicant/developer the present value for each 5/8 x ¾” domestic service connection projected to

be in active service upon the ten-year anniversary of completion of the main extension. Refunds

for domestic services larger than 5/8 x ¾” are based upon the equivalent unit of the service size

as compared to the 5/8 x ¾” and must be based on firm construction plans of the development

showing the building design and size of the water service at the time the Refunding Contract is

executed. If the construction plans are not finalized and/or the size(s) of the water service(s) larger

than 5/8 x ¾” are not defined at the time the Refunding Contract is executed, the refunding method

shall follow the procedure outlined in section 3.03.3.

a. Refund Schedule – The refund amount shall be determined by the amounts shown on the table

below, based on the billing size of the domestic water service to be connected to the main for

which the applicant/developer advanced funds for construction:

Billing

Service Size

Annual Refund Amount

5/8" x 3/4"

$ 26.50

$ 44.00

1 1/2"

$ 88.00

$ 141.00

$ 276.00

$ 442.00

$ 883.00

b. Refunding Period – Refunds shall be made one time within 120 days of closing out the contract

and Louisville Water’s acceptance of the water main. The period for the refunding calculation

shall be ten years.

c. Refunding Calculation – The refunding calculation shall be based on a projection that 90% of

building lots will have active water services upon the ten-year anniversary of project

completion. The build-out projection shall be 15% in year 1 and shall increase an incremental

15% in each subsequent year through year 5; i.e., active services are assumed to be in place on

75% of lots on the 5th anniversary of project close-out. In years 6-10, it is assumed that an

incremental 3% of lots per year will obtain active water services such that 90% of all lots will

be served by year 10. The refund shall be the calculated based on the present value of the sum

of the annual refund amounts. An annual discount interest rate of five percent (5%) will be

used in the computation. The annual refund for a 5/8 x ¾” service is calculated by taking the

annual residential revenue from water sold from all Louisville Water residential customers

divided by the number of residential customers times 10 percent. This value will be adjusted

every 5 years (i.e., 2017, 2022, etc.) based on the previous 5-year average of the annual

residential revenue from water sold divided by the number of residential customers times 10

percent. The Refunding amount based on the previous 5 years (2012-2016) is $26.50. Refunds

for services larger than 5/8 x ¾” are based upon the equivalent unit of the service size as

2022 Service Rules and Regulations Louisville Water Company

compared to the 5/8 x ¾” and must be based on firm construction plans of the development

showing the building design and size of the water service.

The refunding calculation shall be performed in accordance with the following present value

formula:

Refund = (A x N

) + (A x N

)

(1+ i)

n2-1

(A x N

) / (1+ i)

n3-1

…. (A x N

)

(1+ i)

n10-1

A = Applicable Annual Refund Amount

N = Number of Projected Active Domestic Services by Size in Year 1-10

n = Year 1-10

i = Annual Discount Rate

d. Upon payment of the refund, the Company’s refunding obligation to the applicant/developer

shall be fulfilled. In no event shall the refund be greater than the cost of the main extension

without interest. Service installation costs will not be included in determining the cost of the

main extension. Louisville Water has the right to offset any outstanding balance owed by

applicant/developer for the project by any refund due the applicant/developer.

3.03.3 Refund for Projects Utilizing Unconfirmed Size(s) of Services Greater than 5/8 x ¾” - If firm

construction plans and/or if the size(s) of domestic water service(s) greater than 5/8 x ¾” are not

available at the time the Refunding Contract is executed, the refunding amount will be based on

the present value of each domestic service connection in active service on the main extension in

accordance with the following:

a. Refund schedule – The refund amount shall be determined by the amounts shown on the table

included in section 3.03.2 (a), based on the billing size of the water service for each active

domestic service actually connected to the main for which the applicant/developer advanced

funds for construction and for which a minimum bill is being collected on the 2- year in-service

anniversary date.

b. Refunding Period – Refunds shall be made one time within 120 days after the main’s 2-year

in-service anniversary date. The period for the refunding calculation shall be ten years.

c. Refunding Calculation – The refund shall be calculated based on the present value of the annual

refund amount of each active domestic service actually connected to the main on the

2-year in-service anniversary date, for which the applicant/developer advanced funds for

construction and for which a minimum bill is currently being collected, which is to be

discounted for a ten–year period at an annual discount rate of five percent (5%).

The refunding calculation shall be performed in accordance with the following present value

formula:

Refund = ((Σ(A x N))

[((1+ i)

– 1)/(i

(1+ i)

)])

A = Applicable Annual Refund Amount

N = Number of Active Domestic Services by Size

n = Refunding Period in Years

i = Annual Discount Rate

2022 Service Rules and Regulations Louisville Water Company

d. Upon payment of the refund, the Company’s refunding obligation to the applicant/developer

shall be fulfilled. In no event shall the refund be greater than the cost of the main extension,

without interest. Service installation costs will not be included in determining the cost of the

main extension. Louisville Water has the right to offset any outstanding balance owed by

applicant/developer for the project by any refund due the applicant/developer.

3.04 Two-Thirds Majority Tapping Fee Extension Method

3.04.1 Application - The Two-Thirds Majority Tapping Fee Extension Method is available to property

owners meeting all of the following criteria:

a. Ownership of their property is in fee simple;

b. Property is located partially in or entirely in the Company’s retail service area as determined

by the presiding county’s property valuation administrator (PVA);

c. The property must be located along a publicly dedicated right of way or an access easement

where the water main will be installed to serve the applicants.

d. There is no water main extension to the property along a publicly dedicated right-of-way or a

Company easement; and

e. The frontage length of the property along the publicly dedicated right-of-way or access

easement is the same as it was on or before December 31, 2002.

3.04.2 Cost of Extension – The extension applicant including, but not limited to property owner(s) or

designee(s) shall pay the Company for the cost of installation including, but not limited to charges

and costs for labor, material, easements, equipment, and engineering services for such system

improvement. When the request for a water main extension requires installation or enlargement of

supply main(s) not located within the area to be served, the extension applicant (including but not

limited to property owners, the Company and assignees) shall pay the Company for the cost of

installation including, but not limited to charges and costs for labor, material, easements,

equipment, and engineering services for such system improvement.

3.04.3 Design and Construction Standards – All main extensions installed by third parties pursuant to this

rule shall be designed in accordance with Company design criteria, construction specifications and

standard drawings, constructed by an approved vendor or contractor prequalified by the Company,

and inspected by the Company or its representative. The Company shall determine the size of

water mains to be installed

3.04.4 Tapping Fee – Each premise’s share of the cost shall be established by a distribution of the total

actual costs of the main extension, including but not limited to charges and costs for labor, material,

easements, equipment, and engineering services for such system improvement. The equitable share

shall be determined by distributing the total actual cost on an equal basis to the number of improved

premises to be served by the extension. This tapping fee shall be established at the time the main

extension application is approved and should represent a fair proportion of the cost of the main

extension.

For the purposes of this rule, an improved premise shall be defined as each separately deeded tract

having improvements that result in a residence, place of business, or industrial installation

requiring day-to-day domestic water service. At the election of the property owner, the property

owner of an unimproved tract may decide to be a participating premise. This premise will be

included in the number of improved premises to be served by the extension, therefore being

included in the majority determination for that main extension. If that majority determination is

greater than two-thirds, the premise will pay a tapping fee upon application for service. The

2022 Service Rules and Regulations Louisville Water Company

tapping fee will be an equitable share as determined by the method defined in this section for the

main extension serving the unimproved tract.

Minimum Participation – A minimum of two-thirds of the improved premises must agree to the

water main extension and execute an agreement with the Company agreeing to pay their tapping

fee as outlined in Rule 3.04.4 in order for the project to be initiated by the Company.

3.04.5 Payment Method – Upon completion of the main extension, applicants for water service shall pay

the established tapping fee or make payment arrangements with the Company.

3.04.6 Subsequent Connections – Subsequent connections may be made on the same terms as the original

applicants until such time as the cost of the main extension is paid. This tapping fee shall be the

same as established for the original applicants in section 4.0 Tapping Fees.

3.04.7 Recovery Period - Tapping fees for additional service connections to the main may be collected

by the Company until such time as the Company recovers the cost of the extension without interest,

or a maximum of twenty (20) years after the date the main is placed in-service, whichever is earlier.

3.04.8 Subsequent Extensions – The tapping fee in effect for each two-thirds tapping fee main extension

shall not apply to customers taking service from a subsequent extension of the initial main

extension regardless of the extension method of the subsequent main extension.

3.05 Apportionment Warrant Extension Method (KRS 96.265)

3.05.1 General - When the request for the extension is in the form of a petition signed by a majority of

property owners in an unserved area of Jefferson County as contemplated under Section 96.265 of

the Kentucky Revised Statutes, the Company will institute proceedings as set forth therein. Such

extension must be recommended by the Board of Water Works and authorized by the appropriate

legislative body with the cost to be apportioned among the benefited properties. When the

extension is completed, apportionment warrants, payable either immediately or over a Board

designated period bearing interest as set forth therein, are issued and a lien filed against each parcel

of property to which service is available from the extension, regardless of whether service is taken.

Property owners interested in pursuing the apportionment warrant extension method should

familiarize themselves with KRS 96.265 prior to soliciting signatures on the petition.

3.05.2 Apportionment Warrant Tapping Fees - Whenever a water main is extended through the

Apportionment Warrant Extension Method, the Company may collect tapping fees as set out in

these rules for additional service connections to the main after the original apportionment warrants

have been issued, until such time as the Company recovers the cost of the extension, or a maximum

of twenty (20) years after the date the main is placed in service, whichever is earlier.

3.05.3 Extension by Private Agreement - KRS 96.265(11) also provides for main extensions by private

agreement with owners of lots or tracts. Under such agreement the Company also obtains a superior

lien against the lot or tract in an amount equal to the equivalent share per lot or tract.

3.06 Rebating Tapping Fee Extension Method

3.06.1 Application – The Company may allow a water main extension along an existing publicly

dedicated right-of-way or a private road utilizing a Rebating Tapping Fee Contract when the

following are completed:

2022 Service Rules and Regulations Louisville Water Company

a. applicant(s) owns parcel(s) with frontage along such right-of-way or road on which the

applicant(s) reside or conduct an established business,

b. applicant(s) agree(s) to pay the Company for the cost of installation including, but not limited

to charges and costs of labor, material, easements, equipment, and engineering services for

such system improvement, and

c. applicant(s) executes a Rebating Tapping Fee Contract with the Company for such extension

of a publicly held water main which:

i. commits to the applicant’s agreement to take water service within six (6) months of the

main being placed into service, and

ii. either payment of an equitable share of cost or executing a promissory note and mortgage

against said parcel in the amount of an equitable share of cost.

3.06.2 Equitable Share of Cost – The total actual cost of the main extension divided by the total number

of applicant(s) shall be the equitable share of cost.

3.06.3 Collection of Tapping Fees – Other applicants wishing to receive water service along the Rebating

Tapping Fee Main Extension shall pay a tapping fee which is equal to the equitable share of cost

established at the time the main extension is completed. The Company shall make record of the

collection of such tapping fees to said main extension.

3.06.4 Rebating of Tapping Fees – Once each calendar year, the Company shall rebate tapping fees

collected in excess of the total actual cost of the main extension in a proportionate amount to each

customer with an active service connected to the Rebating Tapping Fee Main Extension. Such

rebate tapping fees collected in excess of the total actual cost of the main extension will be

distributed on an equal basis to those customers. For the purpose of this rule the total of rebate

tapping fees collected in excess of the total actual cost of the main extension shall be divided by

the total number of customers with active services connected to the Rebating Tapping Fee Main

Extension. Tapping Fee rebates are to run with the ownership of the land and in the event the

original customer moves away from the address where the tapping fee was paid, future rebates will

be forwarded to the current property owner.

3.06.5 Recovery Period – Upon 20 years from the date the water main is placed in service, the tapping

fee shall cease to be collected for any additional services connected to the Rebating Tapping Fee

Main Extension. The last rebating of tapping fees as described in Rule 3.06.4 shall occur within

one calendar year from the date the tapping fees cease to be collected.

3.07 System Development Charge Rule

3.07.1 General - All new water service connections (defined as a new tap on a water main) shall carry

with them, in addition to any other applicable charges set forth in these service rules and

regulations, a System Development Charge (SDC) in an amount prescribed by the Board of Water

Works as in effect at the time of application. Any master meter installed in lieu of extending a

public water main to provide service shall pay the applicable SDC. Customers with an existing

service at a premise who wish to upgrade to a larger service at the same premise shall pay (in

addition to installation, discontinue, or other applicable fees) the difference in the SDC for the

larger service size and the existing service size. Likewise, customers with an existing service at a

premise who wish to downsize to a smaller service at the same premise shall not be required to

pay a SDC. Refunds shall not be paid by the Company for the difference in SDC between the

original and smaller service size.

Fees collected under this SDC Rule shall be deposited by the Company in a fund dedicated to

2022 Service Rules and Regulations Louisville Water Company

capital improvements that are necessary to rehabilitate or replace elements of the water system, or

on improvements that are necessary for growth or to meet operability requirements, or on projects

that are made necessary by regulation. Certain exemptions from this SDC are identified and

include:

a. Fire service connections.

3.07.2 Specific System Development Charge - The Board may establish specific System Development

Charge rules in certain portions of its retail service area. Situations where specific rules apply may

include, but are not limited to:

a. incorporation of a new portion of retail service area previously owned by third parties;

b. acquisition of a new retail service area;

c. installation of specially required facilities in a defined portion of the retail service area; or

d. installation of specially required facilities in a Company leased distribution system.

3.08 Waterworks Facility Relocation

3.08.1 General Policy - The Company will relocate its facilities upon proper application and execution of

a reimbursement agreement, provided that, in the sole opinion of the Company, the relocation is

feasible, practical, and not contrary to good operating practice, and will be in accordance with

applicable Company service rules and regulations. Relocation of facilities will be in accordance

with the Company’s “Technical Specifications and Standard Drawings for Pipeline Construction”,

latest edition.

3.08.2 Construction Procurement Options - When the request for a waterworks facility relocation is

initiated, the Company, in its discretion, may offer the applicant one of the following options upon

the applicant depositing with the Company either by check or an irrevocable letter of credit from

an approved institution in an amount equal to the estimated costs, as determined by the Company,

including any labor, material, equipment, easement and engineering services incidental to the

construction of the relocation:

a. entering into a contract with the Company for the Company to undertake all construction work

with reference thereto, or

b. entering into a contract with the Company permitting the applicant to contract for the water

facility relocation work to be performed by a contractor prequalified by the Company for the

type of work and dollar amount associated with the requested water facility relocation, in

accordance with the Company’s “Technical Specifications and Standard Drawings for Pipeline

Construction”, latest edition, and subject to Company inspection.

Under either option, public agencies requesting relocations will be billed for the cost of the

relocation.

3.08.3 Undepreciated Value of Assets to be Relocated or Abandoned - In those instances when an asset

of the Company is being abandoned, and such abandonment has been agreed to by the Chief

Engineer, the applicant requesting said abandonment shall pay to the Company the full remaining

undepreciated value of the asset being abandoned.

In those instances when applicant-requested relocations result in the in-kind replacement of assets

of the Company, or when the asset being abandoned was funded with contributed capital and the

Chief Engineer agrees that the abandoned main will not have a negative effect on the operation of

the water distribution system, the applicant will not be required to pay the undepreciated value of

the assets being abandoned. . In cases where upfront refunding amounts were paid by the Company

2022 Service Rules and Regulations Louisville Water Company

for future services, the applicant shall also pay the refunding amount attributed to services that did

not materialize in the section of main to be abandoned.

3.08.4 Cost Adjustment - Upon completion of the water facility relocation, under either method, the actual

cost of the project to the Company shall be determined. If the actual cost is found to be less than

the amount deposited, the excess amount shall be refunded to the applicant. If the

actual cost shall be determined to be more than the amount deposited, then a supplemental bill

shall be rendered to the applicant for payment within 30 days. A detailed summary of actual costs

will be made available to the applicant, upon request.

3.08.5 Ownership and Control - After the construction of an approved water facility relocation, it shall

become the sole property, and be under the exclusive control and management, of the Company,

and the Company shall have the right to extend such water facility or to make connections thereto

for extensions, for itself, and for other parties who may make proper application for extensions, all

without the consent or compensation of the applicant for whom the relocation was made.

3.08.6 Determination of Size of Water Main - Company may install a pipe line of larger size than the

main being relocated. In this event, total project cost entering into the computing of the deposit

and the cost to the applicant shall be on the basis of that required to relocate the existing size

main, including the cost of material, labor and rock excavation. The applicant will bear the cost

for installations, labor, and rock excavation associated with upsizing the mains up to and including

12 inches in diameter water mains. For mains being upsized to larger than 12 inches in diameter,

the Company will bear the incremental cost of material, installations, labor and rock excavation

associated with upsizing the water main.

3.08.7 Rights-of-Way and Easements - No application for water facility relocation will be approved until

or unless the streets or roadways in which they are to be installed have been shown on a final

subdivision plat intended for public dedication and recordation or legally dedicated to public use

in compliance with the pertinent statutes, ordinances, rules and regulations of the appropriate

public agency, or accepted as dedicated public ways by municipalities, County Fiscal Courts or

State agencies by recorded deeds, or easements of sufficient size as determined by the Company

are granted to the Company by the applicant, or are obtained for the Company and such dedication

or easement permits installation of public water service facilities. Where mains are installed based

on a final subdivision plat and the plat is subsequently changed, the developer retains the sole

responsibility, and Louisville Water retains the right to require the developer, to procure and

provide to Louisville Water, with no cost and expense to Louisville Water, any and all easements

specified herein including, but not limited to, changes and / or modification of the design due to

engineering and / or field construction conditions.

4.0 TAPPING FEES

4.01 Tapping Fee Policy

Tapping fees, as per the regular schedule approved by the Board of Water Works, as the Board

may otherwise designate, will be collected and retained by the Company from customers applying

for water service to property abutting on pipe lines installed by the Company, at its expense, and

also on pipe lines installed and paid for by others, as set forth in Section 3 of these rules.

2022 Service Rules and Regulations Louisville Water Company

4.02 Tapping Fee Schedule

The Tapping fee schedule will be reviewed annually and approved by the Board of Water Works.

4.03 Tapping Fees in Water Districts Leased

Tapping fees assessed on any water service connections to any water mains installed within the

boundaries of water districts operated by the Company under Lease arrangement shall conform to

the Schedule of Tapping Fees established by the Lessor water district.

5.0 FIRE HYDRANTS

5.01 General

Public fire hydrants shall be installed when required by the Company or by governing authority or

local fire protection law, at the applicant's expense as a part of the water main extension.

5.02 Fire Hydrants Requested by Individuals or Agencies

The Company may install public fire hydrants on existing mains at the request of individuals or

agencies (including local governments) at the Company's sole discretion. The applicant shall pay

the cost of any labor, material, easements, equipment and engineering services associated with

such installation.

5.03 Ownership of Fire Hydrants

Public fire hydrants shall become the property of the Company upon installation and acceptance.

5.04 Certified Flow Tests

Upon application and payment of a Board approved fee, the Company will perform a fire hydrant

flow test certified by a Professional Engineer.

5.05 Private Fire Hydrants

Private fire hydrants are fire hydrants that are not owned or maintained by Louisville Water

Company, which draw their water supply from a dedicated Louisville Water fire service (Section

1.04.2) or private water supply (e.g. well, tank, lake, etc.).