Home » PSC to take comments in Mountain Water district rate case

PSC to take comments in Mountain Water district rate case

Utility wants to raise average monthly bills from $8 to $40

FRANKFORT, Ky. (March 3, 2015) – The Kentucky Public Service Commission (PSC) will hold a meeting in Pikeville next month to receive public comments on a rate increase proposed by Mountain Water District.

KPSC logoThe April 16 meeting will be held in conjunction with a public comment meeting on the rate increase sought by Kentucky Power Co.

The meeting will be held in the auditorium at Pikeville High School, 120 Championship Drive.

Mountain Water has about 17,300 water customers and 2,400 sewer customers in Pike County. Mountain Water is seeking to increase its annual revenue from water sales by about $2 million, or about 25 percent. The utility says the average monthly residential bill would increase by about $8, to about $40, if the rate increased is approved.

Mountain Water’s proposed sewer rates would increase revenue from wastewater treatment operations from about $990,000 to about $2.56 million, or about 159 percent. If approved, the new rates would more than double current sewer bills, with residential customers paying from about $34.50 to about $55 more per month, depending on the current rate.

In its application, Mountain Water says the increases are needed to maintain the utility’s financial stability and to provide reliable service. Mountain Water states that its current revenue is insufficient to meet expenses, including payments to Utility Management Group, which has a contract to conduct most of the district’s operations.

Mountain Water’s last general rate increase was in 1997.