Water, Sewer Infrastructure Investment Drives Utility's Proposed Rate Increase
Missouri American Water has filed an application with the Missouri Public Service Commission (MOPSC) requesting a change in the rates for the company’s water and sewer customers, including an annual revenue increase of $73.9 million for water customers and $800,000 for sewer customers.
The main driver of the rate case is the company’s investment of more than $490 million in water and sewer improvements. These infrastructure improvements to local water and sewer plants, pumps and pipes enhance service quality, reliability, environmental performance and fire protection for customers. Additionally, increases in daily operating costs such as fuel and power continue to raise the true cost of providing reliable water and sewer service.
“These investments in plants, storage tanks, pumps and pipes are necessary to enhance and maintain service reliability, water quality and fire protection for the more than 150 communities served by Missouri American Water,” said Cheryl Norton, President of Missouri American Water. “Proper investment is needed so that we can ensure that our customers continue to receive reliable service that meets all regulatory standards.”
This rate adjustment filing includes an extension of the low-income rate that was a pilot project requested by the MOPSC in the company’s Northwest operations as part of the last rate decision in July 2016. Missouri American Water is now proposing to offer the low-income rate statewide and customers that are eligible for utility assistance through the Low Income Home Energy Assistance Program (LIHEAP) would be eligible for reductions on water bills if the request is approved.
Current rates will not change until the MOPSC completes a thorough review and analysis of the request. The regulatory process can take up to 11 months, and will include opportunities for public comment. For detailed information, visit Missouri American Water’s website, www.missouriamwater.com.
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