By Alan Lytle
Lexington, KY – Kentucky American Water customers will be getting a trickle of relief by way of a Public Service Commission ruling today. The PSC, which ultimately sets utility rates, granted KAW a smaller increase than what was requested.
"They had asked for close to twenty-six million dollars. They are receiving something short of nineteen million dollars in annual revenue increase. That's a little less than three fourths of what they had asked for."
PSC spokesman Andrew Melnykovych says what that means is a projected 37 percent water rate increase now becomes a 29 percent hike.
"Because they put the rates into effect at the end of September as they are entitled to do under state law, and those rates are the ones they had originally applied for, what they now have to do is determine as a result of the lower rate increase, how much they need to refund back to their customers for essentially the difference."
Kentucky American said in its filing the lion's share of the extra rate revenue would be used to recoup the construction costs of a new water treatment plant in Owen County. The utility has twenty-three days to appeal the ruling.