Our Regionalization Initiative

Regionalization enhances wastewater treatment and benefits our communities

The Kentucky State Legislature passed a bill allowing utilities to own assets outside of their originally chartered borders in April 2018. The law enables MSD to take a holistic approach for wastewater treatment and watershed management, benefiting public health and safety across political boundaries. 

Our regional waterways meander over county lines as they make their way to the Ohio River. “Opportunities open up to look holistically across entire watersheds to bring economies of scale and make improvements that benefit the entire region when you remove arbitrary boundaries,” states MSD Executive Director Tony Parrott.

Bullitt County

In 2020, the Bullitt County Sanitation District (BCSD) and Bullitt County Fiscal Court signed a Memorandum of Agreement (MOA) authorizing MSD representatives to review all facets of the BCSD operations with the intent of acquisition. Pending results from that review, MSD would own and manage the BCSD system and improvements to that system while creating greater operational efficiencies that benefit all customers.

Under the preliminary proposal, MSD would assume BCSD’s duties and responsibilities in early 2021 for its 4,200 residential customers and eight small “package” wastewater treatment plants. One of the initial actions is to develop a capital improvement plan addressing aging and failing systems and take advantage of regional economies of scale to benefit the ratepayers in both counties.

When in place, the agreement will allow MSD to replace many of the “package” treatment plants that are past their useful service with a regional solution, improving the sewer service reliability in the area and the health of local waterways.

City of Crestwood

In May 2019, the City of Crestwood leadership and MSD negotiated the purchase agreement for MSD to own the sewer treatment system in that city—resulting in a $10 reduction in Crestwood customers’ rates. MSD has operated and maintained the Crestwood sewer system for more than 20 years. The agreement moved ownership of the system to MSD.

“Selling the wastewater system to MSD allows Crestwood to remove liability, lower the costs to ratepayers, and provide enhanced environmental benefits to the region—resulting in safe, clean waterways for the future,” said Crestwood Mayor Jim Kramer.

Oldham County

Louisville MSD welcomes Oldham County Environmental Authority (OCEA) ratepayers to our customer family. For OCEA customers, this means lower wastewater rates in the future. MSD is managing system improvements while creating greater operational efficiencies that benefit all of its customers. Louisville MSD and Oldham County Fiscal Court approved an interlocal agreement allowing MSD to enter into a purchase agreement for the Oldham County Environmental Authority (OCEA) wastewater system in November 2019. The Authority’s Board of Directors, the Kentucky Attorney General’s office, and the Kentucky Department of Local Government also approved the purchase.

Under the agreement, MSD assumed OCEA’s duties and responsibilities for approximately 6,000 residential customers. MSD is honoring the contract with Veolia Water to operate and maintain the sewer system and wastewater treatment plants until the contract concludes.

Because of efficiencies and watershed-based approaches, OCEA customer rates are holding at the current monthly average of $86.93 per month for the remainder of the operations contract. In 2022, MSD will adjust the average monthly rate down to $76.93 per month. These acquisitions do not impact existing services or rates for Jefferson County MSD customers.