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Public Service Commission orders refunds after scaling back Kentucky-American Water rate increase

Rudy and Peter Skitterians

Kentucky-American Water customers will get partial refunds on their bills after the Public Service Commission issued an order trimming down a proposed rate increase.

The utility asked for a $26 million revenue increase last year. It would have seen service fees jump by 33 percent.

The PSC scaled back that increase to $10 million, with those service fees only increasing by nine percent.

The utility implemented the original increase Feb. 6 before the Commission ordered refunds along with the new rate in a May 3 order.

The PSC said in the order that the utility had not done enough to mitigate water loss from its systems.

Both the Lexington-Fayette County Urban Government and Attorney General Russell Coleman, joint intervenors in the case, said the originally proposed increase would have been a “financial hardship” to customers.

The increase affects customers in Lexington and 14 counties in central Kentucky: Bourbon, Clark, Fayette, Franklin, Gallatin, Grant, Harrison, Jackson, Jessamine, Nicholas, Owen, Rockcastle, Scott and Woodford.

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Shepherd joined WEKU in June 2023 as a staff reporter. He most recently worked for West Virginia Public Broadcasting as General Assignment Reporter. In that role, he collected interviews and captured photos in the northern region of West Virginia. Shepherd holds a master’s degree in Digital Marketing Communication and a bachelor’s in music from West Virginia University.
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