Kentucky Water to begin projects, rate adjustments to show up on bills

LEXINGTON, Ky. (WTVQ) – Infrastructure improvements approved last year by the Kentucky Public Service Commission will add about 36 cents a month to the average residential bill of Kentucky American Water customers this year.

According to the company, about $8.3 million in water infrastructure improvement projects are planned. The item will show up on customer bills as a Qualified Infrastructure Program.

The QIP will allow the company to replace aging water system infrastructure at a quicker pace before it becomes potentially more problematic and more costly to replace, the utility said.

In its order regarding the company’s 2020 QIP program, the PSC authorized approximately six miles of water main replacement projects along with main replacements associated with water main repairs. This work will be paid for with the QIP fees collected through customers’ bills

“Aging water system infrastructure replacement and resiliency continues to be a critical topic of discussion across the nation. We appreciate the PSC supporting a new and progressive approach toward funding water infrastructure improvements in the Commonwealth, and we are hopeful that this program will continue to evolve in the future so that we are able to replace more critical water infrastructure at a faster pace,” said Nick Rowe, president of Kentucky American Water and senior vice president of American Water’s Southeast Division.

“The communities we serve will benefit from it. “At the same time, we remain focused on cost control and increased efficiencies to balance the rate impact of these needed investments. Just this month the PSC also approved our proposal to place a credit on customers’ water bills that is related to the savings we realized as a company when we refinanced our long-term debt expense,” Rowe said.

“That credit will be applied to July bills. We are always seeking ways to maintain not only reliable, quality service but also affordable service for our customers.”

Through the QIP program, Kentucky American Water submits to the PSC each spring for review a detailed report of water system improvement projects proposed for completion between July of that same year and the following June. After thorough review and consideration, the PSC will determine the amount of funding approved for projects that year.

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