Kentucky American Water has filed a rate request with the Kentucky Public Service Commission for new rates, reflecting over $212 million in system investments. The company is seeking a total annual revenue increase of approximately $26.9 million, excluding qualified infrastructure program revenues that have already been approved. If approved as requested, the water bill for the average residential customer using 3,900 gallons per month would increase about $9 per month.
The investments included in the request are the replacement of 30 miles of aging water pipelines and the upgrading of storage tanks, pumping stations, hydrants, meters, and more. The company's last general rate case was filed in June 2023.
Kentucky American Water anticipates that proposed rates will go into effect, on an interim basis, approximately seven months after the filing. The final decision regarding any change in rates will be made by the PSC within 10 months of the filing. Once a final decision has been made, the difference between the interim and final approved rates is subject to a refund.
American Water, the parent company, is the largest regulated water and wastewater utility company in the United States, providing services to more than 14 million people with regulated operations in 14 states and on 18 military installations. Following these announcements, the company's shares moved 1.56%, and are now trading at a price of $142.56. For more information, read the company's full 8-K submission here.
