www.kymua.org

Continued on page 2

Flooding in Paducah, Kentucky Photo by Ray McLennan

1-34456-1113-1414141616

In This IssueNeighbors Helping Neighbors Carroll Assumes KMUA PresidencyTVA Will Reduce Pollution at Power PlantsFloral Clock and Rose Garden turn 50The Main LineCorbin Utilities Get a New HomeKMUA visits Duke Envison CenterToyota Celebrates 25 Years in GeorgetownEarth Day Celebration at Trail of Tears ParkGuest Article: Congressman Ed Whitfield

In late April, Kentucky suffered $34 million in estimated damages as wind and rain, then

flooding, pummeled the Bluegrass state. 37 Kentucky counties were added to the request

for disaster recovery funds for flooding. The U.S. Army Corps of Engineers said the

Ohio River in Paducah crested at 55.8 feet. 600 National Guard were mobilized to assist in flood relief efforts. 3,800 Kentucky residents evacuated their homes. According to the Kentucky Transportation Cabinet, 250 roads were closed in 50 counties due to flooding. That Kentucky flooding event was followed by an unprecedented number of tornados that struck the south east this year have left a wake of destruction. In Joplin, Missouri alone,135 people lost their lives as a tornado tore through the town leaving a 6 mile swath of destruction in its path. Soon after a deadly outbreak of tornadoes ravaged parts of the deep South. Several hundred had been killed. Kentucky’s municipally owned utilities answered the call to help restore

electrical service in Alabama, Georgia and Mississippi.

Kentucky’s municipal utilities sent relief crews, trucks, equipment and personnel to areas that suffered the most damage. Their purpose was to help and in some cases take over for local crews that had been working round the clock. “Our members represented KMUA well and helped out our sister systems in other states,” said Austin Carroll.

SummerKMUA Quarterly Newsletter 11KMUA Quarterly Newsletter

Flooding in Paducah, Kentucky Photo by Ray McLennan

Neighbors Helping Neighbors

www.kymua.org

Flooding in Paducah, Kentucky Photo by Ray McLennan

Flooding in Paducah, Kentucky Photo by Ray McLennan

Devastation in Joplin, MO Photo by Tony Ewing

President Obama granted a disaster declaration to the Commonwealth of Kentucky, through the Federal Emergency Management Agency on May 4. Kentucky received more than $4 million for severe storm clean-up efforts as part of a National Emergency Grant from the U.S. Department of Labor. This money was used to address the severe storm, tornadoes and flooding damage that struck Kentucky in April 2011.

Gov. Steve Beshear , on July 13, 2011, requested yet another major disaster declaration from President Barack Obama for those parts of eastern Kentucky damaged by the flooding, high winds and tornadoes caused by last month’s severe storms.

Gov. Beshear requested Individual Assistance, Disaster Unemployment Assistance, Crisis Counseling, Public Assistance, Hazard Mitigation and Small Business Administration disaster

2

www.kymua.org

loans.

“Time and again, my administration has worked hard to provide assistance to struggling communities around the state after severe storms, and this time is no different,” said Gov. Beshear. “If this request is granted, we will receive financial assistance to help them repair and rebuild their communities.” Seven counties had requested Public Assistance: Bell, Breathitt, Knott, Knox, Lee, Magoffin, and Perry. Five counties had requested Individuals and Households Assistance: Bell, Breathitt, Knox, Lee, and Perry.

Under a major disaster declaration, local governments, state agencies, small businesses, certain private non-profits (such as municipals, electrical cooperatives and water districts), individuals and households would be able to request financial assistance from the federal government to clean up, repair and replace property destroyed or damaged by the storm.

Beginning June 19, severe thunderstorms rolled through multiple Eastern Kentucky

counties, causing flash flooding, hail, and high winds which caused damage to public and private property. One death was attributed to the storms.

Gov. Beshear immediately requested joint federal, state, and local surveys of the damaged areas. Evaluation teams estimated public sector damages in excess of $5.7 million. Teams also identified more than 350 homes and 65 businesses which were heavily damaged or destroyed.

This is the second major disaster declaration Gov. Beshear has requested this year. Severe storms and flooding across the state in May caused evacuations and significant property damage, particularly in western Kentucky. It will be the state’s 10th federally declared disaster since 2008.

Sources: KMUA press release and Commonwealth of Kentucky Press releases May 2011

Flooding in Paducah, Kentucky Photo by Ray McLennan 3

Devastation in Joplin, MO Photo by Tony Ewing

www.kymua.org

TVA Will Reduce Pollution at Two Coal-Fired Power PlantsThe Tennessee Valley Authority will reduce air pollution from its two coal-fired power plants in Kentucky under an agreement with the U.S. EPA that moves the federally owned utility toward cleaner-burning fuels. Congressman Ed Whitfield criticized the agreement citing potentially higher electricity rates as a result. “This is a prime example of what is wrong with national environmental policy in the United States. It is being determined by privately settled lawsuits and monetary payoffs with absolutely no input from elected representatives in the Congress.”

EPA Administrator Lisa Jackson said that the TVA has determined that the settlement wouldn’t increase rates to customers who get their power from the TVA.” TVA will also pay $350 in million in energy efficiency, renewable energy and green house gas reductions. The TVA provides electricity to all or part of seven states. Distributors of TVA power serve 225,000 households in all or part of 28 counties in south central and Western Kentucky. The agreement stems from enforcement action that the EPA took against the TVA in 1999. EPA said the Shawnee plant

near Paducah and Paradise Plant in Muhlenberg County were covered by the agreement. The TVA will provide one million dollars to the National Forest Service to improve or rehab the forest and park land affected by TVA plants including Mammoth Cave National Park. TVA will pay a civil penalty of ten million dollars of which Kentucky will receive one million.

Eighteen coal-fired generating units will be shut down at three plants in Tennessee and Alabama and be replaced with low emission electricity sources. The settlement requires the TVA to invest $3-5 billion in upgraded pollution controls that will prevent up to 3,000 premature deaths 2,000 heart attacks and 21,000 asthma attacks each year according to the EPA. The TVA will also pay Kentucky $11.2 million for energy conservation projects. Kentucky officials helped negotiate the consent decree agreement with three environmental agreements Alabama, Tennessee and North Carolina.

Source: TVA Press Release and TVPPA News releases, June 2011

Carroll Assumes KMUA PresidencyThe Kentucky Municipal Utilities Association is pleased to welcome Austin Carroll, Manager of Hopkinsville Electric System, as President of the Association.

Austin previously served as Vice President of KMUA and continues to serve as the Regional representative to the American Public Power Association (APPA) Board. He also holds board positions with Seven States Power Board, Kentucky Public Power Association, the Hopkinsville Industrial Foundation, Economic Development Council, and is Past Chair of the Kentucky Student Loan Board. Austin is a graduate of Leadership Kentucky. Having been the manager of HES for 26 years, he is a long-time resident of Hopkinsville with his wife Angela. He has two grown children.

Shortly after receiving his BS degree, Austin began work for NASA as a computer programmer/analyst. His work with NASA taught him one important lesson - always Aim High. Austin then worked for TVA for 11 years, lastly as Kentucky District Engineer. After earning his MBA, Austin was chosen to lead HES, in 1986, as its General Manager. He has infused HES and its employees with that same Aim High mindset, especially when it comes to servicing the residents and businesses of Hopkinsville.

Carroll brings that same energy and vision to his Presidency of KMUA. “Along with the members, I’m looking forward to building the organization to new heights in order to better serve our consumers. One area in which we can improve is our political strength. I have a vision of greater political influence for our organization and working with each system in improving service to the ultimate customer. Whatever we do, we must not lose our focus on what is best for our customers in our hometowns and Aim High in our delivery.”

KMUA PRESIDENT Austin Carrol

KMUA Board Of Directors 2011-2012

PRESIDENT VICE PRESIDENT TREASURER / SECRETARY EXECUTIVE DIRECTORAUSTIN CARROLLHopkinsvilleElectric System

RON HERDCity Utilities Com-mission of Corbin

MARTy IVyMayfield Electric and Water System

ANNETTE DUPONT-EWINGadupontewing@mepak.org

4

www.kymua.org

KMUA Spring Meeting Lexington Kentucky

April 28-29, 2012Keeneland

Keeneland turns 75! KMUA will hold its Spring Meeting at Keeneland, which is celebrating its 75 anniversary. Rich in tradition, Jack Keene started building his “home” in 1916 which included a training center, stable, dining hall, ballroom, living quarters and a quarter mile enclosed training track edged by stalls. Today the original structure still stands. Robert McMeekin designed the grandstands and other details for the home that later became Keeneland Racetrack. (LHL, April 10, 2011, P. A-1)

Located in Frankfort, KMUA joined in the celebration with First Lady Jane Beshear as she celebrated the 50th anniversary of the Floral Clock and Rose Garden. The floral clock was built in 1961 at the request of Governor Combs modeled after the clock in Niagara Falls, Canada. The clock is 34 feet in diameter and weighs 500 pounds.

The hands of the clock have been painted gold to commemorate the 50th anniversary. Mrs. Beshear also spearheaded an effort to

revitalize the Capitol Rose Garden located at the Capitol Annex. Also created in 1961, and sometimes neglected, now benches and a walkway were added.

The garden was redesigned and reinvigorated by Jon Carloftis, an award-winning nationally-known garden designer and Kentucky native.

Floral Clock and Rose Garden Turn 50

Water & Energy Utility ExpertiseComprehensive Engineering and Environmental Services

Treatment • Storage • Distribution • Collection Modeling • Electric Transmission • Substations • Gas Distribution

Environmental Assessments • Permits • Right of Ways & Easements •Reservoirs & Ponds

www.flohut.com

Let Us Put Our Expertise To Work For You.

Roger Colburn, PE, PLS - 800-688-3920 - rcolburn@� ohut.com

Keeneland Turns 75!

5

www.kymua.org

KEN

TUCKY MUNICIPAL

SANITARYSEWERU

TILITIES ASSOCIA

TON

State officials are trying to find out why Madison County schools might have to pay $1 million next year to Time Warner-Cable, Inc.

for Internet service, a 1,500 percent hike. There is worry that other school systems utilizing TWC will suffer the same sticker shock. According to Christian County Schools spokeswoman

Regan Huneycutt, the district has a contract with Hopkinsville Electric, a municipal utility, and will pay $39,960 for all internet

service during the 2011-2012 fiscal year.

Under state law, Time Warner cable is the only company Madison schools can contract with for Internet access. Madison could be reimbursed for part of the contract expense thorough FCC Universal Service fund, but even with assistance the school will pay a half million dollars out of pocket. Madisonville school officials asked the FCC for a 60-day extension to apply to the Universal Service Fund. Source: Kentucky New Era, March 31, 2011

AT&T Buys T-Mobile USA

Ex-State Rep. Eddie Ballard Dies

Kentucky by the Numbers

Sticker Shock!

AT&T plans to buy T-Mobile USA in a cash and stock deal valued at $39 billion, making AT&T the largest cell phone company in the United States. The merger is currently under review by the FCC. The deal would reduce the number of wireless carriers with national coverage from four to three and is sure to face regulatory scrutiny. It also removes a potential partner for Sprint Nextel Corp., the struggling No. 3 carrier which had been in talks to combine with T-Mobile USA, according to the Wall Street t Journal.

The acquisition gives AT&T 129 million subscribers, vaulting it past Verizon Wireless to make it the largest U.S. Cell phone company. AT&T has captured 43% of U.S. cell phones with the merger. The effect of reduced competition in the cell phone industry remains to be seen.

Source: Peter Svensson, Courier Journal.com, 3/21/2011

Mirroring a national trend toward cleaner air, Louisville Gas and Electric and Kentucky Utilities are making plans to retire coal-burning units at three aging power plants within five years, including the Cane Run station in western Louisville. According to the PSC, by 2016 KU’s Green River Plant in Central City in Western Kentucky, KU’s Tyrone station in Versailles has already been mothballed.

Source: Courier Journal, 4/25/22, p. A.1 and PSC website

Former state Rep. Joseph Edward “Eddie” Ballard, D- Madisonville, died, from a series of strokes, at the age of 81 on May 31. He served the state in the Kentucky House of Representatives from 1987-2010. He was also chairman of the House Tourism Development and Energy Committee and was vice chair of the State Government Committee. He served the people of the 10th district in Hopkins County.

Source: Governor’s Press Release 6/6/11 and Lexington Herald Leader, 6/1/2011, p. A-5)

A recent survey of Kentucky manufactures suggested that 43% of them are making green products. Forty percent are developing new green products according to the 2010 Manufacturing Wage

and Benefits survey commissioned by the Workforce Kentucky Association of Manufactures and other groups.

The survey also found that 60% of employers are training their employees in using energy more efficiently. The survey was taken from 220 companies.

Source Lexington Herald Leader, 10/25/11, by Scott Sloan.

Eddie Ballard Photo courtesy of http://kyhousedems.com/

LG&E, KU Consider Switch to Gas

6

www.kymua.org

KEN

TUCKY MUNICIPAL

SANITARYSEWERU

TILITIES ASSOCIA

TON

On July 7th, the U.S. Environmental Protection Agency issued its long-awaited Cross-State Air Pollution Rules (CSAPR) - the most significant new EPA action affecting the power sector and U.S. electricity, coal and natural gas markets in more than two decades. EPA’s rules impose new restrictions on emissions from power plants in 27 states east of the Rocky Mountains (including Texas).

Further, EPA takes a stronger approach to compliance. The first new restrictions go into effect on January 1, 2012 with additional

restrictions on May 1, 2012. It also establishes new emissions trading programs for both SO2 and NOX.

There may be implications for electric utilities, independent power producers, energy traders, natural gas and coal producers, large energy users and investors in stocks and bonds of the affected companies.

Source: PGS Energy Training Information 6/21011 - email

Valued Associate Member Carmen Leister with Central Service Association, announced the

birth of her lovely baby daughter, Vivian Joy Leister, on February 2, 2011. Vivian weighed in at 7

pounds, 9 ounces and was 19.5 inches long. Her Dad, Ryan and her big sister Clara are thrilled.

Secretary Len Peters, of the Kentucky Energy and Environment Cabinet told a congressional subcommittee that he’s troubled by the U.S. Environmental Protection Agency’s refusal to talk with states and listen to suggestions regarding the issuance of coal mine permits. Peters testified before the House Subcommittee on Water Resources and Environment. He said “Kentucky cannot get consistent guidelines on what an acceptable mine permit should be.”

Secretary Peters testified before a congressional committee meeting in Washington, D. C. saying that the U.S. EPA refuses to talk with states and listen to suggestions regarding the issuance of Clean Water Act 402 permits sought by coal companies and that he was disappointed by EPA Administrator Jackson’s dismissive attitude toward an issue of such importance to the state.

WUKy, May 6, 2011, Kentucky Energy Watch May 6, 2011 and Commonwealth of Kentucky’s Press Release on May 5, 2011

As the U.S. EPA prepares to enact regulations that cap green house gases and toughen mine permitting requirements, Kentucky lawmakers and other mining states have battled the administration’s efforts through legislation designed to weaken the EPA’s regulatory authority and by attacking agency director Lisa Jackson. Senate Minority Leader Mitch McConnell, R-Ky has supported multiple measures to revise critical parts of the Clean Air Act and block the EPA’s power to issue new regulations on green house gases. Fellow Kentucky lawmaker Rep. Ed Whitfield, R-Ky has offered similar measures in the House.

Democratic Governor Steve Beshear’s administration sued the EPA over delays in issuing coal mining permits and criticized what they see as the EPA’s overly-aggressive regulatory efforts. Senators McConnell and Rand Paul have also proposed measures that give the EPA 60 days to approve or veto mining permit applications under the Clean Air act. The Obama Administration’s regulatory efforts related to coal are mixed. For example, the administration blocked the EPA’s move for stronger regulation on coal ash.

In mid-July 2011, Senator McConnell stewarded a bill that significantly cut the EPA’s ability to enforce the clean water act. The president has vowed to veto it if it comes out of the Senate, saying that the bill would set water quality back by four decades.

Source: LHL, March 31, 2011. p. A-1, Good Morning American newscast 7/14/2011

Cell Phone Only: Kentucky is near the top when it comes to cell phone-only households.

American’s abandonment of the landline phone in favor of the cell phone is accelerating. Kentucky was ranked sixth on the national list for only cell phones in the household.

Source: Courier Journal, 4/23/22 online

Kentucky Partnership with EPA Severely Fractured

McConnell Leads Effort Against EPA

EPA’s New Restrictions of Power Plant Emissions

KMUA sends its congratulations!

7

www.kymua.org

The CWA is one of the Nation’s most effective environmental laws, to ensure safe levels of water quality across the country implemented through the Environmental Protection Agency (EPA). Since the enactment of the CWA in 1972, the Federal Government has protected the waterways by using its checks and balances authority to review and adjust key state water pollution control decisions, where necessary, to assure that they reflect up to date science, comply with the law, and protect downstream water users in other states.

Kentucky is ranked fifth highest in the nation for the number of water pollutions permits and ranks 36th in federal funding for enforcing those permits. Federal funding through Section 106 of the CWA makes up a small portion of states’ budget for clean water enforcement or 18%. When Kentucky was awarded the authority to administer the CWA in 1983, it also assumed the cost and responsibility of enforcing it. Another source of funding for

enforcements is the fees collection for pollution permits. Kentucky has a low permit fee in comparison to other states. The Ky DOW increased the fees by 130% in 2009. The first increase ever.

Kentucky’s environmental cabinet has urged the EPA to revise its funding formula to better meet the state’s increasing needs. Kentucky received $2 million through Section 106 of the CWA in 2009. Kentucky is the third largest coal producing state and remains the state with the most coal mines , ranked 49th in the 50 states receiving $193 per permit compared with the nationwide average figure of $952 per permit. Delaware charges the most for its permits at $24,637 and Kentucky has the second lowest permit fee charging only a dollar more than Florida.

Sources: Lexington Herald Leader, 6/26/11, p. D-1 and EPA press release

With summer at our door, the US EPA Energy Star program issued its annual list of ideas to help the public cut cooling costs, protect their health and stay comfortable. The average home spends almost 20% of its utility bill on cooling. Increased energy used for in-door cooling increases costs and pollution. Here are 7 simple things that can be done to protect your wallet and the environment:

Change To More Efficient Light Bulbs: Energy Star qualified lighting uses less energy and produces 75% less heat than incandescent lighting.

Find the Best Thermostat Setting: Set the thermostat to 78 degrees when no one is home to save energy. Use ceiling fans and box fans. Set a bowl of ice in front of a box fan and it will cool as it

evaporates. Increase your thermostat by two degrees and use your ceiling fan to create a cool breeze and you can reduce cooling cost by 14%.

Maximize Shade: Keep curtains and shades closed to keep the sun out.

Wait!: Wait until early morning or evening to run heat-generating appliances like dishwashers, washing machines, etc. When possible, don’t use the oven use a microwave instead. Ovens make the house warm and take longer to cook. If you use the oven use the range fan to vent hot air outside.

Check AC Filters: A dirty filter slows air flow and makes your system work harder to cool and wasting energy.

Plug Duct System Leaks: 20% of the air in most homes is lost to duct system with leaks and poor connections.

Source: APPAnet.org, Ecohome and EPA 5/2011 press release)

Clean Water Act (CWA) What is Kentucky’s Share?

EPA Offers Energy Tips on Summer Cooling To Help Save Money, Reduce Pollution

8

www.kymua.org

President Barack Obama has vowed to reduce US oil imports by one-third in little more than a decade. He said in a speech in Washington that American had to “get serious” about a secure and affordable energy future. Higher oil prices are threatening to hamper US economic recovery and another is a growing dissatisfaction among car drivers with pump prices. Mr. Obama said the US must move towards getting 80% of its electricity from non-oil sources by 2035.

Source: Kentucky Energy Watch 4/1/11, BBC News March 30, 2011

The Kentucky Division of Compliance Assistance is offering a workshop entitled “Floodplains, Streams and Wetlands Compliance” for anyone who is working in a floodplain, planning to construct near a wetland area or is about to conduct work in a stream.

The purpose of the workshop, conducted by the Kentucky Department for Environmental Protection (DEP), is to educate attendees on the hot topics and key points of the 401 Water

Quality Certification, 404 U.S Army Corps of Engineer Permits and Floodplain Stream Construction Programs. Workshops will be held on various dates in August in Prestonsburg, London, Florence, Mayfield and Elizabethtown.

For more information or to purchase tickets for these events, please visit http://dca.ky.gov/ or call the Division of Compliance Assistance toll-free at 800-926-8111.

The Tennessee Valley Authority and local power companies say residents can save money during the summer heat through TVA’s EnergyRight Solutions program.

An in-home energy evaluation program is designed to encourage the installation of energy efficiency improvements in single-family homes that are at least a year old.

Additionally, the TVA online and paper Home e-Valuation is a do-it-yourself program allowing residential customers to play an active role in saving energy in their homes.

Details are at http://www.EnergyRight.com.

Source: TVA press release 4/4/2011

KMUA strongly encourages electric members to learn more about APPA’s RP3 Program. To do so, KMUA partnered with APPA to provide a free webinar to interested KMUA member electric utilities on Wednesday, May 25th. The two-hour webinar explained the steps in applying for designation as an RP3 provider. Kentucky has 4 RP3 utilities now: Paducah Power Systems, Princeton Electric Plant Board, OMU and BGMU.

The Louisville Metropolitan Sewer District was pressured by Mayor Greg Fischer to clean up its business conflicts. The board chair and two other members were forced to resign, when it came to light that they had been paid $600,000 by MSD in the

past five years. The deals were legal but the mayor made it clear they represented conflicts.

Source Courier Journal, March 29, 2011, p. A-1

President Obama Sets Out Energy Future for Less Dependency on Oil

Water Quality Certification and Floodplain Compliance Workshop Schedule

Walter Ray Smith, 83, passed away on March 20, 2011 after a long illness. He was employed in the electrical distribution business for 45 years. Mr. Smith retired in 1994 as manager of the Princeton Electric Plant Board and moved to Lebanon, Tennessee. His wife of 64 years Kathryn and his four children miss him dearly.

Source: Times Leader, March 21, 2011)

Former PEPB Manager, Walter Ray Smith, Passes

TVA Energy Right Program

KMUA Offered A Special RP3 Webinar on May 25 to Members

MSD Under Scrutiny

9

www.kymua.org

Public Power Week Celebrates a Quarter Century

American Electric Power

Two Workers Die

APPA’s New Chair

“This year marks an important milestone for public power. We celebrate the 25th anniversary of Public Power Week - a week in which public power utilities across the nation reach out to citizens in their communities to celebrate the benefits and unique value of public power. Mark your calendar October 7-13, 2012 is Public Power Week! “

Source: Mark Crisson, APPA President and CEO. 6/2011

American Electric Power’s profits rose three percent in just one quarter as a result of rate increases and ongoing cost-cutting efforts. AEP is one of the nation’s biggest power companies, with more than 5 million customers from Michigan to Texas.

Source: Lexington Herald Leader, April 21, 11, on line

Two men were washed away when a wastewater treatment plant failed near the Smokey Mountains in Tennessee and spilled millions of gallons of sewage into the Little Pigeon River. The Tennessee Emergency Management Agency said a holding tank failed at the Gatlinburg Wastewater Treatment Plant.

Source: WLEX 18 News, Lexington, Ky April 5, 2011

Greenville’s Bill Carroll is set to take over as APPA Chair. The former TVPPA chair and DSA winner is to serve a one-year term. A native of Columbia, TN and graduate of Tennessee Tech University, Mr. Carroll has a long and distinguished career of service to the public power community.

Source APPA News 5/2011

more information can be found at www.APPAAcademy.org

July 29: Designing Substations with Digital Prototyl

August 16: Performance Monitoring and Accountability for Boards

Sept 7: Using Work Management Solutions to Improve Productivity and Customer Service

October 24-28: Fall Education Institute

October 26-28: Public Power Leadership Workshop

November 6-9: Legal Seminar

November 14-16: Smart Grid Summit

November 14-1: 2012 NESC

November 17-18: NERC Compliance

APPA Academy

KMUA Celebrates National Drinking Water Week May 1-7

10

www.kymua.org

Blast From the Past - Frankfort, 1961

The Accounting Experience You Need Are you ready for an accounting �rm that will focus on your success -- not their own? Then, call Alexander Thompson Arnold CPAs. The ATA team has in-depth experience with utility systems and municipalities throughout the Tennessee Valley. That means we can identify areas of weakness and make recommendations for improvement. Plus, you get the personal attention you deserve. Let Alexander Thompson Arnold CPAs be your accounting professionals.

Certi�ed Public Accountants

O�ces in Tennessee & Kentucky

731.427.8571www.atacpa.net

Utility System Services Annual audits Regulatory �lings Fraud investigations Telecom system audits Penetration testing SAS 70 audits IT audits

Our Experts: Daniel Simons, A+, Net+, MCP, MCSA, CISA; Stephen Eldridge, CPA, CISA, CITP, CGEIT, CRISC; Michael La�oon, CISA; and J. Winston Truett, CPA.

A two year construction program and a $2,500,000 million bond issue created a sanitary sewer system that has eliminated a real health hazard for the city of Frankfort. The project took two years to complete and included 42 miles of pipeline, eight pumping stations and big treatment plant on the Kentucky Riv-er. The old city had too many septic tanks and a combination sanitary sewer and storm water system that released waste into the Kentucky River. At the urging of pollution authorities, the city council agreed to a 40-year bond and led to five construc-tion contracts totaling $2,242,986. The remainder of the bond money went to pay engineering fees of $165,000 interest pay-ment of $130,000 and for a street paving program of $117,000. The treatment plant was built on the Kentucky river at a cost of $415,333.

The combined sewers had to be connected with the new sys-tems at a cost of $528,679. Work in the annexed area was com-

pleted at a cost of $933,974. Pumping stations were put in at a cost of $192,443. Five more have been added. The end of con-struction still left 5 key problems for the board to struggle with: extension, infiltration, gaps, storm water and maintenance. The workforce of 11 has been able to fill in some of the gaps in the original system. These gaps were left when the bond was limited to $2.5 million. Income from the system was $237,824 and users pay a connection charge of $300 when connection to a line and a use tax of a 150% of their water bill. Those outside the city pay 20 percent additional. The system served 5,300 and the system upgrades have improved health standards in the city, which is a strong selling point in the continuing drive for new industry.

Source: Submitted by Bill R. Scalf, Jr. Director, Frankfort Sewer Department, synopsis taken from the Frankfort Journal, June 4, 1961

KMUA’s next annual meeting in 2012 will be held at the Brown Hotel which is celebrating its 85th anniversary of the hotel’s signature dish - The Hot Brown. Back in 1926, the Brown Hotel was wildly popular on dance nights with live music, flappers, etc. Before going home, dancers famished from their exertions went to the restaurant for some chow. Fred Schmidt cobbled together what would become a famous open faced sandwich made with what he had on hand: bacon, tomato, turkey breast and cheese sauce. The Hot Brown was a hit and has remained so for 85 years. (CJ, May 2011)

Hot Brown Anyone?

11

www.kymua.org

KMUA IS INVITED toAn Octoberfest Evening

at Castleberry Creek(Austin and Angela Carroll’s Farm near

Pennyrile Forest State Park)

4:30PM October 27th 2011

other Octoberfest activities.

BBQ Dinner and Drinks provided.

Directions will be provided at the KMUA Meeting.

12

www.kymua.org

Continued on page 14

Corbin City Utilities Gets a New Home

Ronald W. Herd, General Manager, is proud of his new facility located at 1515 Cumberland Falls Highway. “This new municipal utility building allowed us to redevelop an existing site within the city and doing so has helped revitalize this area of town. The former dealership had significant floor space, a huge service bay and significant square footage (approximately 30,000 square feet) in a show room that was easily converted to a climate controlled, covered garage for our service trucks, equipment and storage. This was a carefully planned and considered move by the utility commission board.

CUC purchased the land and has now remodeled the site,

with the help of GRW Engineers, to be a state of the art, energy efficient building. The “geothermal applications” have made a huge difference in cutting our energy costs! The employees are much happier, as well. The board’s vision was not only to make it a comfortable, inviting and professional environment for our customers but also for our valued employees. It’s a win-win for the community!” said Herd.

13

www.kymua.org

Ops Plus, Inc., a Louisville based utility support firm, has just moved up 7 spots on the recent Louisville Business First rankings! We moved up from # 20 last year to # 13 for the Louisville areas’ largest women-owned businesses.

Ops Plus and its subsidiary, Ops Engineering LLC have 65 employees, an increase of 22% since the same time in 2010. Our vice president, Debbie Conway attributes the growth to increase sales and marketing efforts in addition to the quality of our work and a growing reputation in the utility industry.

Members of the Kentucky Municipal Utilities Association visited the Duke Energy “Envision Center” as part of the KMUA April Quarterly meeting in Northern Kentucky. The Duke Energy Envision Center is a model and testing facility for smart grid and energy-efficient technologies. The 15,000 square foot center is a first-of-its-kind demonstration center and lab to show how technology will improve electric system reliability and efficiency and give consumers greater control over their energy use.

Twenty-five years ago, dignitaries from Japan and Kentucky gathered with Scott County residents on 1,400 acres of vacant land a few miles from downtown Georgetown to break ground on Toyota Motor Corporation’s newest venture. With shovels in the ground and colorful streamers flying on top of a white tent, Dr. Shoichiro Toyoda, Toyota president, said he

wanted the company’s first North American plant to become a good corporate citizen to Kentucky

and to build a partnership with America. Toyota’s current investment in the plant and surrounding communities of Kentucky is $5.6 billion. Toyota in Georgetown employs 6,429 people.

Toyota Motor Manufacturing Kentucky, Inc. (TMMK) is an automobile manufacturing factory in Georgetown. TMMK celebrates 25 years in Kentucky. It is part of Toyota Motor Engineering & Manufacturing, North America owned by Toyota Motor Company of Japan. TMMK was established in 1986 (the

first wholly owned Toyota manufacturing plant in the U.S.) and is Toyota’s largest manufacturing facility outside of Japan. It began production in May 1988 building the Camry. In the beginning, the engines were shipped from Japan; however, an on-site engine plant was added in 1990. It presently builds the Avalon sedan, Camry sedan, and Venza crossover. The factory also produces 4-cylinder and V6 engines and powertrain parts with an annual capacity of 500,000 vehicles and 500,000 engines.

Ops Plus is Moving Up!

KMUA Visits Duke Envision Center

Toyota Kentucky Celebrates 25 Years in Georgetown

The grand opening was a huge success with many leaders in the community in attendance on May . The grand opening had local customers coming into tour the facility and partake in the inaugural birthday cake, refreshments and giveaways.

14

www.kymua.org

Lexington, Ft. Mitchell & Louisville

GRW

15

www.kymua.org

Earlier this year, I toured Hopkinsville Electric Systems (HES) to view some of the new technologies being used to improve their delivery and monitoring systems. Some of these systems, like electronic meters, can be read remotely and more frequently to help customers track their electricity usage.

As America’s energy demands increase, we need an ‘All of the Above’ energy strategy that responsibly uses all energy sources

including Kentucky coal, nuclear and natural gas, just to name a few. In ensuring that we have a comprehensive ‘all of the above’ strategy, Congress must ensure that it exercise proper oversight over agencies, such as the EPA, that are

moving aggressively with regulations that would have devastating consequences on energy development and jobs. As Chairman of the House Subcommittee on Energy and Power, I have led a review of numerous EPA actions and have offered legislation designed to reverse some EPA actions in favor of regulations that strike the right balance between protecting our environment without threatening the creation of jobs. I believe that any decisions of such economic magnitude with potentially negative impacts on jobs must be determined by Congress – not by unelected agency staff.

America has a $14 trillion economy and a number of factors go into growing and keeping it successful – including access to affordable, reliable energy. In my role as Chairman of this important subcommittee, I will be working to ensure that companies like HES, who provide reliable and secure energy, are not overly burdened by expensive regulations from Washington that unnecessarily drive up energy prices for customers.

On Thursday, April 22, the Trail of Tears Commission, Hopkinsville Electric System/EnergyNet, Tennessee Valley Authority, Hopkinsville Beautification Commission, the Christian County Cooperative Extension Service, Hopkinsville Christian County Convention & Visitor’s Bureau, Walmart of Hopkinsville, James E. Bruce Convention Center and Kiwanis Club sponsored an Earth Day Celebration, recognizing the annual event of global environmental citizenship.

The local Earth Day Event was held at the Trail of Tears Commemorative Park on Pembroke Road and attracted over 350 visitors who educated themselves on environmentally-friendly products ranging from hybrid vehicles, to Green Power energy, to recycling and soil conservation. Participants enjoyed a light picnic lunch.

Organizers kicked-off the event with comments from City and

Guest Article Congressman Ed Whitfield Delegation

Earth Day Event Celebrated at Trail of Tears Commemorative Park

County officials and State Representative John Tilley who announced the new Kentucky Appliance Rebate Program. Located at the park’s Welcome Cabin is a Solar Demonstration Project installed by Hopkinsville Electric System and was unveiled at last year’s Earth Day celebration. The 2,700 kilowatt-hour per year solar panel demonstrates renewable or green power alternatives and is expected to generate electricity for 25 years or more. During this time span, the clean energy produced by the panel will eliminate approximately 90,000 lbs. of CO2 emissions, an equivalent environmental effect of planting 13 acres of trees.

Earth Day is a national annual event.

Sheryl Ellis with Kentucky New Era explaining how to guess the weight of their (recyclable) Giant Roll of Paper Contest;

Aerial view of the Earth Day Celebration Event State (Ky) Representative John Tilley announcing the new Kentucky Appliance Rebate Program;

Tim Hughes with Tennessee Valley Authority (TVA) promoting Green Power Switch, TVA’s renewable energy program.

16

www.kymua.org

By combining science, engineering, and technology expertise with business acumen, we address the technical and business interdependencies that determine success. From analyzing and integrating leading technologies to designing, building, and operating infrastructure systems, we apply deep domain expertise to strengthen our customers’ enterprises and help them thrive in a complex world.

For detailed information, visit saic.com/EEand

At SAIC we provide innovative, integrated solutions to meet our customers’ energy, environmental, and infrastructure challenges.

Cultivating solutions throughout the entire project life cycle

Energy | Environment | National Security | Health | Critical Infrastructure

NYSE: SAI© Science Applications International Corporation. All rights reserved. 17

www.kymua.org

For Making Our July 2012 Annual Meeting A Success By Their Participation, Especially Those Who Sponsored Events,

Donated Door Prizes And Setup Exhibit Tables

Brown Thornton, SAIC, Inc., - Dinner SponsorRobert C. Abner, Baldwin CPA’s – Dinner Sponsor

Roger Colburn, Florence and Hutcheson – Reception SponsorBob Smallwood, GRW – Reception Sponsor

John Steinmetz, Hazen & Sawyer – Golf SponsorWinston Truett, Alexander, Thompson, Arnold CPA’s – Golf Sponsor

Jennifer Brinkman, Advanced Payment SolutionsCharlie Bowers, Cash Cycle Solutions

Carmen Leister, Central Service AssociationBrian Gordon, Fellon-McCord

Jim Haggerty, Gresham, Smith and PartnersMegan Hayden, Luthan Meters

Bill Howell, NeptuneDwayne Buckles, OPS Plus, Inc.

Tom Giordano, RonkSteve Spencer, Southwest Electric

Thomas Brandewie, SPIDASolomon Corporation

Ernie Peterson, TVATodd Blocker, UES

Bob Brumley, NESCOIan Woods, TCI of Alabama

Marlay Price, Gannet and FlemingVicky Wilson, NISC

Thank you!A Special Thanks to Our 2011 Valued Associate Members

18

www.kymua.org

Belmont Elementary in Hopkinsville

Austin Carroll, KMUA President, Secretary Len Peters of the Energy and Environment Cabinet and KMUA’s executive director, Annette DuPont-Ewing visited Belmont Elementary School in Hopkinsville, Kentucky to see firsthand the Green School’s Demonstration Project by the Belmont Energy Savers club. To the delight of Secretary Peters, the students created an entertaining and informative video of the accomplishments they had made in making their school more energy efficient!

This particular Christian County school deserves the accolades of their peers as they have saved a significant amount of money in heating and electricity costs for their school! This local school is an ENERGy STAR rated school and has not only met but exceeded the significant energy cost savings expected. The program is run by the students under the direction of teacher, Shelby Logsdon. “This has morphed into a hands-on teaching tool for faculty, staff and student. We are extremely proud of our students and

the dedication they have shown to energy efficiency both at home and at our school!” said Ms. Logsdon. Secretary Peters noted, “Each dollar that these fine students save in energy costs means more money for books, field trips and equipment. I’m very proud of all of you!” Today, Kentucky is home to 90 ENERGy STAR schools.

This Energy in Education Collaborative is a partnership created by DEDI, that includes four programs and two

projects focused on energy and sustainability issues in the design, construction and operation of energy-efficiency sustainable schools as well as addressing educational/curriculum opportunities. The total energy average energy expense per student is $257.61 per year and increase of 86% since 2000 due to an increase in the cost of energy. Belmont Elementary student and teachers are working hard to ameliorate those numbers!

19

www.kymua.org

The Kentucky Municipal Utility Association (KMUA) represents 47city owned utilities that provide the essential services of electric power, water, wastewater, natural gas and telecommunications services. KMUA takes pride in providing low-cost, efficient and reliable service to almost three-quarters of a million customers in cities throughout the Commonwealth of Kentucky. KMUA represents locally owned and operated utilities that are governed by city officials or independent utility boards appointed by city officials. Our member managers live and work in their communities, providing service and employment to the citizens of Kentucky.