LEXINGTON, Ky.--(BUSINESS WIRE)--The Kentucky Public Service Commission today announced new water service rates for Kentucky American Water customers. The company’s rate request, filed in November 2018, was driven by more than $100 million in needed investment in water treatment and distribution system upgrades since the company’s last rate increase in August 2016. The cost of water service for customers remains about a penny per gallon.
“We continue to invest in water system improvements to ensure clean, safe, reliable water service for our customers,” said Nick Rowe, president of Kentucky American Water and senior vice president of American Water’s Southeast Division. “At the same time, we remain focused on cost control and increased efficiencies to balance the rate impact of these needed investments.”
The PSC also approved the implementation of a Qualified Infrastructure Program charge that will allow the company to replace aging water pipes in the distribution system as well as other water system assets at a quicker pace, before they potentially become more problematic and more costly to replace.
“Aging water infrastructure replacement and resiliency are critical topics of discussion across the nation. We appreciate the PSC’s support for this new and progressive approach to funding water infrastructure improvements,” Rowe said. “The communities we serve will benefit from it.”
The approximate bill for an average residential customer using 3,869 gallons of water per month will increase from $32.06 to $37.27. The new water rates are effective June 28, 2019.
About Kentucky American Water
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. Visit www.kentuckyamwater.com and follow Kentucky American Water on Twitter, Facebook, and Instagram.
About American Water
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 7,100 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to over 14 million people in 46 states. 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.