Kentucky American Water asking for rate increase

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Kentucky, American, Water

LEXINGTON, Ky. (WTVQ) – Kentucky American Water is proposing a rate hike to pay for a $100 million infrastructure upgrade.

The company filed an application Wednesday with the Kentucky Public Service Commission (PSC) to adjust its rates for water service.

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If the increase is approved, the average water customer is expected to see their bill go from $32.06 to $39.62.

Among the major capital projects included in Kentucky American Water’s rate adjustment request are:
• Jacobson-Hays Booster Station pressure zone project, which helped enhance system pressure for approximately 10,000 customers in southeastern Fayette County.
• The replacement of older, high-service pumps at the Kentucky River Station I water treatment facility in Lexington, the system’s largest treatment plant, to improve operational and energy efficiency.
• The rehabilitation of a valve house at the Kentucky River Station I facility to create a more efficient structure and safer environment for employees.
• Chemical storage and feed improvements to be conducted at the Kentucky River Station I and Richmond Road Station water treatment facilities to enhance the reliability of these plants and enhance safety.
• Water main extension and improvement projects along Athens-Boonesboro Road in Fayette and Clark counties to enhance water pressure, reliability and quality.
• The construction of a new maintenance garage in Owenton to provide better and more efficient storage space for equipment and materials.
• The replacement of 9.5 miles of aging water pipes in the region since the last rate increase took effect in 2016.

The company says it will also allow it to implement a Qualified Infrastructure Program charge that would allow the company to replace aging water pipes and other water system assets at a quicker rate.

No rates will change unless the PSC approves it. The process typically takes about 10 months.