Lexington Mayor Linda Gorton asked the Public Service Commission on Tuesday to reject Kentucky American Water’s latest plan to increase rates.
Gorton testified at a PSC hearing in Frankfort Tuesday. The mayor has been at odds with Kentucky American over several construction projects in the city that have led to traffic delays and property damage.
“There's a reason that you've heard a lot from Lexington in recent years about the practices of Kentucky American Water,” she said. “This company we do not believe is serving Lexington well.”
Gorton said since she became mayor seven years ago, the average monthly bill has increased more than 60%. Kentucky American seeks to increase that another 16%.
“This is unprecedented,” she said, “and this is an outrage for our people.”
Gorton asked the commission to disallow any costs related to “unreasonable” construction practices that have disrupted the city or conduct a management audit of them.
Monday, the PSC denied Lexington’s September complaint against Kentucky American but gave it 20 days to resubmit.
Kentucky American executives said the rate increase is needed to offset the higher costs of construction and the acquisition of smaller water systems.
The average residential customer uses about 4,000 gallons each month and now pays $51.60. If the full increase is approved, that would jump to nearly $60.
The new rates would become effective in mid-December.
Just last December, the PSC approved a rate increase to support water treatment and distribution projects. The average bill increased $2 a month.
The utility did not immediately respond to WEKU's request for comment on Gorton's Tuesday testimony.
