Kentucky American Water filed an application with the Kentucky Public Service Commission at the end of January, seeking to increase rates for water service.
Kentucky American cited roughly $79 million spent on water system improvements in recent years as the primary reason for the requested increase, including a $15 million filtration building currently under construction at the utility’s Richmond Road Station water treatment plant. The construction of the new facility, which is scheduled to begin operation this year, was approved by the Kentucky PSC in December 2014.
The requested increase would boost the company’s revenue by an estimated $13.5 million per year, increasing the average residential customer’s monthly bill by roughly $6, from $34.38 to $40.38, for 4,130 gallons per month, according to Kentucky American. KAW’s last request for an increase in the water service rate occurred in December 2012.
“Since our last rate case, Kentucky American Water has continued to implement efficiencies and best practices throughout the business to reduce our operations and maintenance expenses,” said Kentucky American Water President Nick Rowe in a release on the filed application. “This has enabled us to keep our operating expenses virtually flat since 2012. We have done so while also remaining focused on providing quality service for our customers and making appropriate system improvements.”
Additional capital improvements cited by the water company include the replacement of aging water mains and aged, less-efficient pumps, in an effort to enhance service quality, reliability, environmental performance and fire protection.
In a statement regarding the proposed increase, Mayor Jim Gray opposed the move.
"This would be the fifth water rate increase in 10 years. If the Public Service Commission grants this latest request we will be paying 80 percent more for water than we were in 2006. It's time for the Commission to say no," Gray said.