Kentucky Public Service Commission approves Kentucky-American Water Company's request for rate increase
By Stan Ingold
December 19, 2025 at 6:17 PM EST
The Kentucky Public Service Commission issued an Order approving Kentucky-American Water Company’s request for a rate increase.
The approved increased rate for a residential customer utilizing just over 3,900 gallons per month results in a monthly increase of $6.82, or 14.31%, from $44.08 to $50.90.
The approved residential volumetric charge would be roughly $7.86 per 1,000 gallons.
In the Order, the PSC approved a $19.89 minimum bill for residential and commercial customers. Commercial customers will be charged about $8.00 per 1,000 gallons.
In its application, Kentucky-American had requested an increase in water revenues of $26.9 million per year for the forecasted test period.
Kentucky-American said this would result in a 19.9% increase in water service revenues.
The Commission found a total revenue requirement increase of just over $18.2 million, or 13.33% to be reasonable.
Kentucky's Attorney General, by and through the Office of Rate Intervention and the Lexington Fayette Urban County Government, were granted intervention in this matter.
Kentucky-American Water distributes and sells water across three divisions, including its Central Division, which consists of Bourbon, Clark, Fayette, Harrison, Jessamine, Nicholas, Scott, and Woodford counties; its Northern Division, which consists of Gallatin, Owen, Grant, and Franklin counties; and its Southern Division, which consists of Rockcastle and Jackson counties. Kentucky-American provides water service to more than 139,532 customers throughout its three divisions.
The approved increased rate for a residential customer utilizing just over 3,900 gallons per month results in a monthly increase of $6.82, or 14.31%, from $44.08 to $50.90.
The approved residential volumetric charge would be roughly $7.86 per 1,000 gallons.
In the Order, the PSC approved a $19.89 minimum bill for residential and commercial customers. Commercial customers will be charged about $8.00 per 1,000 gallons.
In its application, Kentucky-American had requested an increase in water revenues of $26.9 million per year for the forecasted test period.
Kentucky-American said this would result in a 19.9% increase in water service revenues.
The Commission found a total revenue requirement increase of just over $18.2 million, or 13.33% to be reasonable.
Kentucky's Attorney General, by and through the Office of Rate Intervention and the Lexington Fayette Urban County Government, were granted intervention in this matter.
Kentucky-American Water distributes and sells water across three divisions, including its Central Division, which consists of Bourbon, Clark, Fayette, Harrison, Jessamine, Nicholas, Scott, and Woodford counties; its Northern Division, which consists of Gallatin, Owen, Grant, and Franklin counties; and its Southern Division, which consists of Rockcastle and Jackson counties. Kentucky-American provides water service to more than 139,532 customers throughout its three divisions.