Kentucky American Water seeks rate increase to support $212 million infrastructure investment
Kentucky American Water has filed a request with the Kentucky Public Service Commission (PSC) for new rates, reflecting more than $212 million in system investments. The request reinforces the company’s commitment to replacing aging infrastructure and continuing to provide safe, clean, reliable and affordable service in compliance with environmental regulations for the benefit of customers.
“Kentucky American Water is dedicated to the health and safety of our customers and the communities we serve,” said Rob Burton, president of Kentucky American Water. “Our approach to long-term, efficient and consistent investments in our water systems enables us to deliver high-quality service to the more than half a million people we serve in 13 counties.”
Among the investments included in the request are the replacement of 30 miles of aging water pipelines and the upgrading of storage tanks, pumping stations, hydrants, meters and more.
In today’s filing, Kentucky American Water is seeking a total annual revenue increase of approximately $26.9 million, excluding Qualified Infrastructure Program (QIP) revenues that have already been approved. The company’s rate request undergoes extensive, public review by the PSC, the Kentucky Attorney General’s Office of Rate Intervention and other interested parties, such as the Lexington-Fayette Urban County Government. This process includes numerous interrogatories, public hearings and evidentiary hearings. The company’s last general rate case was filed in June 2023.
If the company’s proposed rates are approved as requested, the water bill for the average residential customer using 3,900 gallons per month would increase about $9 per month.
The new rates proposed in today’s filing are a request only. Kentucky American Water anticipates that proposed rates will go into effect, on an interim basis, approximately seven months after the filing. The PSC will make the final decision regarding any change in rates within 10 months of the filing.
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