New Customer Rates for Missouri American Water Approved by Missouri Public Service Commission
May 03 2018 - 3:18PM
Business Wire
Rate change driven by over $250 million of
infrastructure investments statewide
Investments of over $250 million in water and wastewater systems
are the key driver in a rate order issued by the Missouri Public
Service Commission (MoPSC) today. Included in the new rates is
approximately $207 million of water and wastewater system
investments made by Missouri American Water throughout its Missouri
service areas that were not previously reflected in rates, and $48
million of previously approved Infrastructure System Replacement
Surcharge (“ISRS”) investments.
“Periodic rate adjustments allow us to continue making critical
investments in water and wastewater plants, pumps and pipelines
that help to enhance quality, service reliability, and fire
protection for customers,” said Cheryl Norton, president of
Missouri American Water. “These investments are needed in the over
150 communities we serve so we can ensure our customers continue to
receive service that meets all regulatory standards.”
The need to improve water and sewer systems is a national
challenge. The American Society of Civil Engineers recently stated
an estimated $1 trillion of investment is needed across the nation
over the next 25 years in water system investments, and an
estimated $271 billion in sewer system investments. Increasing
regulations and stricter water quality standards continue to
contribute to increases in costs for service nationwide.
The rate order will result in approximately $38 million in
additional annual base rate revenue, including $5 million of
previously approved ISRS revenue. According to company officials,
additional revenues will allow Missouri American Water to continue
to invest proactively in its water and wastewater infrastructure
throughout the state.
The revenue requirement reflects an $18 million reduction in the
federal income tax due to the enactment of the Tax Cuts and Jobs
Act (the “TCJA”).
New rates are expected to take effect in late May/early June.
The last change in base rates for water service and wastewater
treatment occurred in 2016.
Missouri American Water’s rates are based on the costs of
providing water and sewer service as reviewed and approved by the
MoPSC.
The amount of the rate change customers will experience will
vary among the company’s operating districts. Customers will
receive communication further explaining the rate change, and they
can visit www.missouriamwater.com for additional information.
Missouri American Water
Missouri 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 1.5 million people.
With a history dating back to 1886, American Water is the
largest and most geographically diverse U.S. publicly traded water
and wastewater utility company. The company employs more than 6,900
dedicated professionals who provide regulated and market-based
drinking water, wastewater and other related services to an
estimated 15 million people in 46 states and Ontario, Canada.
American Water provides safe, clean, affordable and reliable water
services to our customers to make sure we keep their lives flowing.
For more information, visit amwater.com and follow American Water
on Twitter, Facebook and LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20180503006496/en/
Missouri American WaterChristie BarnhartExternal Affairs
ManagerT - 417-627-3800 x 1008C -
417-529-9781Christie.Barnhart@amwater.comorBrian
RussellCommunications ManagerT - 314-996-2239C -
314-825-3578Brian.Russell@amwater.com
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