PSC Cuts Kentucky American Rate Hike Request By Almost Half

Oct 25, 2013

State regulators have adjusted a proposed rate increase for Kentucky-American Water Co. customers.

The Public Service Commission approved the adjustment Friday. The move will increase Kentucky-American's annual revenue by $6.9 million, a little more than half the amount the company sought.

Average residential customer bills will increase from $35.40 to $38.95 for 5,000 gallons a month, an increase of $3.55, or about 10 percent.

Kentucky-American wanted to increase revenue by $12.3 million annually, which would have increased the average monthly bill to $41.23, about a 16.5 percent hike.

The company said in asking for the increase that it is needed to recover the cost of capital improvements made since its last rate case in 2010.

A statement from Kentucky American Water President Cheryl Norton said  “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.  The ongoing capital investments we make are necessary to ensure that such quality service continues.”

The release went on to say that since the PSC-approved rates are lower than those implemented in July, the utility 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

Kentucky American Water serves about 124,300 customers in 10 central Kentucky counties.