The Kentucky Public Service Commission today approved new rates for Kentucky American Water customers, reaching a decision on a rate increase requested by the company in December 2012.
As permitted by Kentucky law, on July 27, 2013, Kentucky American Water put into effect the rates it originally proposed last December. The rates approved by the PSC today are lower than those implemented in July. With the new, PSC-approved rates, water service for the average residential customer using 4,500 gallons of water per month will be approximately $36.30, or about $1.21 per day for quality tap water, which is still less than a penny per gallon. Other adjustments determined by today’s PSC decision affected rates for services such as new taps and meter services, for example.
Kentucky American Water filed for a rate increase in December 2012 to cover approximately $58 million in system investments since the last rate increase request was made in 2010. Such projects include replacing aging water mains and manually read water meters as well as making improvements at water treatment plants.
“As a utility whose services are critical to ensuring public health, we take our responsibility to provide quality drinking water seriously, and as such, are committed to keeping our systems and facilities well-maintained and serviced,” said Cheryl Norton, president. “The ongoing capital investments we make are necessary to ensure that such quality service continues.”Since the PSC-approved rates are lower than those implemented in July, Kentucky American Water will refund the difference to customers, plus interest, through a credit on customers’ bills within the next 60 days. Former customers affected by the rate reduction will receive checks within the same timeframe. The average residential refund with interest will be approximately $6. Additional information can be found on the Kentucky Public Service Commission’s website at psc.ky.gov. 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. For more information visit www.kentuckyamwater.com. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,700 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 30 states and parts of Canada. More information can be found by visiting www.amwater.com.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts