State approves water rate increase for Lexington area

FRANKFORT, Ky. (AP) – The Kentucky Public Service Commission says it has approved a water rate increase for more than 100,000 customers in and around Lexington.

A statement from the agency says it approved a settlement Tuesday granting Kentucky-American Water a little less than half of the increase it requested.

The company had asked to increase its annual revenue by about $13 million a year, which would have added nearly $7 to an average residential bill. The PSC approved a rate adjustment that will increase its revenue by about $6.5 million, which will add about $3.60 to an average bill. The news rates take effect on Aug. 28.

Kentucky-American Water asked for a rate increase to recover the cost of system improvements and major construction projects.

The company serves more than 126,000 customers in 10 counties in central Kentucky.