(1) After July 1, 2001, and annually thereafter, each area development district shall review and prioritize the planning councils' plans for underserved and unserved areas within the water management area for that district. The review and prioritization shall be conducted with the assistance and input of the authority and the water management councils for the counties or multicounty areas within a water management area. These prioritization plans shall be submitted to the authority for review and approval. The authority may suggest changes necessary for the purpose of qualifying for financial assistance from the water service account of the Kentucky Infrastructure Authority.
(2) Factors to be considered in prioritizing the plans for underserved and unserved areas within a water management area include:
(a) The current and potential customer base that would benefit from water service;
(b) The adequacy, cost-effectiveness, and dependability of water sources, water treatment capacity, and distribution lines that may be used to provide water service; and (c) The potential to consolidate or merge management or operations to provide efficient and affordable services.