The state Public Service Commission on Monday approved a rate increase for customers of Water Service Corp. of Kentucky.
The utility had requested an increase in annual revenue of $807,000, or 51 percent, but was approved for only $473,000, or 29 percent. That will raise its total annual revenue to about $2.1 million.
The company serves about 7,300 residential customers in Hickman County in Western Kentucky and Bell County in Eastern Kentucky.
For Hickman County customers using 5,000 gallons monthly, bills will rise $8.54, or 29 percent, to $38. That includes school taxes. For customers in Bell County using 5,000 gallons monthly, bills will rise by $5.12, or 29 percent also, to $22.70.
Water Service Corp. had said it needed the rate increase to pay for system improvements and update its customer service and billing systems. But the commission said in its ruling that "Water Service has failed to meet its burden of proof that the indirect cost allocations from (the parent company) are reasonable, are directly related to providing water service, or benefit the ratepayers."