LEXINGTON, Ky. — The Kentucky Public Service Commission (PSC) approved higher water rates for Kentucky American Water, which asked for the rate hike in June 2023.
Since its last PSC-approved rate increase in 2019, Kentucky American Water has made plans or begun $330 million in water system investments. These include replacement of aging pipe, water treatment plant upgrades and system resiliency projects.
The new rate order approves an overall increase in water rates of $17.3 million.
“Kentucky American Water is committed to making the needed infrastructure improvements across our service areas so we can continue to provide the high level of safety, service, and reliability that our customers expect and deserve,” said Kathryn Nash, president, Kentucky American Water. “In addition, we will continue to remain focused on opportunities for greater efficiencies to help maintain affordable rates for customers.”
An interim adjustment in rates, based on those the company proposed in its June 2023 filing, became effective on February 6, 2024. The PSC lowered the interim rates in May 2024. The company issued to customers credits for the difference, including interest, using the Federal Reserve’s “bank prime loan” rate.
The PSC on Nov. 6 ordered an additional rate adjustment.
Kentucky American Water reminds customers facing circumstances that are stretching their financial resources about its bill paying assistance programs that include payment plans, budget billing and, for income-eligible customers, the company’s H2O Help to Others customer assistance program.
Kentucky American water parent American Water American Water is the largest regulated water and wastewater utility company in the United States.
Kentucky American Water is the state’s largest investor-owned water, providing water and wastewater services to approximately 560,000 people.
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