The State Public Service Commission has approved a settlement in Kentucky American Water Company’s rate increase case. The order amounts to slightly less than half of the amount requested by the utility.
The settlement means a typical residential customer will see a monthly increase of $3 dollars 60 cents. The new rates take effect August 28th. It amounts to a six and a half million dollar boost in annual revenue to Kentucky American.
In its applications the water company said the increase was needed to recover the cost of capital improvements since the last rate hike in 2013.
In addition to Kentucky American, parties to the rate case included the state attorney general’s office, the city of Lexington, and community action councils from four counties. Kentucky American serves about 126 thousand customers in ten counties with the vast majority in Lexington.?
