Kentucky American Goes Before PSC in Rate Increase Case

FRANKFORT, Ky. – A lengthy evidentiary hearing is underway in Frankfort, where the Public Service Commission is considering testimony in Kentucky American Water's proposed 37-percent rate hike.

Kentucky American says it needs the additional revenue to pay for its new pipeline and water treatment plant. Company president Nick Rowe says having the facility online will mean a solid supply of water even during drought situations.

"The reason we got by over the past four or five years when it got really hot was we invoked the appeals board that really put people on pretty tight restrictions. I think once we get the new plant online,the whole demand management plan has to be revamped."

During a brief public comment period at the hearing, Lexington Mayor Jim Newberry presented the Public Service Commission with a petition with 4,300 signatures in opposition to the rate increase proposal.

The PSC continues its hearing Wednesday.