Kentucky Public Service Commission Approves Settlement in Kentucky American Water Rate Case
August 24 2016 - 12:21PM
Business Wire
The Kentucky Public Service Commission (PSC) has announced its
approval of a settlement granting Kentucky American Water a rate
adjustment for water bills that will increase its annual revenue by
$6.5 million, which is slightly less than half the amount the
company requested when it filed the case on Jan. 29 of this year.
As a result of the rate adjustment, the monthly bill for an average
residential water service customer using 4,136 gallons of water per
month will increase from $34.41 to $37.38 – or $2.97 more per month
– effective Aug. 28.
All parties involved in the rate case proceeding – Kentucky
American Water, the Kentucky Office of the Attorney General, the
Lexington-Fayette Urban County Government and the Community Action
Council for Lexington-Fayette, Bourbon, Harrison and Nicholas
Counties – reached a settlement in the case in July, which was
subject to PSC approval.
The company requested the rate adjustment primarily due to the
$79 million in capital improvements it has made since 2012. These
improvements include projects such as replacing aging water mains,
upgrading pumps to more efficient models, and constructing a new
$15 million filtration building at the Richmond Road Station water
treatment plant in Lexington to replace a 90-year-old structure.
Before the 2016 case, the last time the company requested a rate
adjustment was in December 2012.
“Ongoing investment in water system infrastructure is absolutely
essential in order to maintain quality, reliable water service for
our customers,” said Nick Rowe, president of Kentucky American
Water and senior vice president of American Water’s Central
Division. “While we continue to make prudent investments in the
water systems that serve our customers, we are also cognizant of
the need to maintain affordable rates, which is why we are also
committed to performing as efficiently as possible. We have
maintained essentially flat operational expenses since 2012, and
our teams continue to work harder and smarter to stay on that same
path.”
Kentucky American Water, a subsidiary of American Water (NYSE:
AWK), is the largest investor-owned water utility in the state,
providing high-quality and reliable water and/or wastewater
services to approximately half a million people. The company was
recognized as a Best Place to Work in Kentucky in 2014, 2015 and
2016. For more information, visit www.kentuckyamwater.com.
Founded in 1886, American Water is the largest publicly traded
U.S. water and wastewater utility company. Marking its 130th
anniversary this year, the company employs more than 6,700
dedicated professionals who provide regulated and market-based
drinking water, wastewater and other related services to an
estimated 15 million people in 47 states and Ontario, Canada. More
information can be found at www.amwater.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160824005929/en/
Kentucky American WaterSusan Lancho,
859-268-6332susan.lancho@amwater.com
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