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PSC approves new rates for Kentucky American Water customers

Water service remains about a penny per gallon

LEXINGTON, Ky. — The Kentucky Public Service Commission announced Thursday 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.

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.

“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.”