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Lexington council endorses intervention in water rate increase

The Lexington Urban County Council on Thursday unanimously endorsed the state attorney general's intervention on behalf of city residents in Kentucky American Water's request for a rate increase of almost 38 percent.

The Public Service Commission, which will consider the request, approved an 18 percent rate increase for the company last year.

Council also asked that representatives of Kentucky American come to council's work session Tuesday to explain the rate request and answer questions.

Vice Mayor Jim Gray proposed the resolution.

The rate increase is based mostly on the cost of a new $160 million water treatment plant and pipeline. Council members want to know what progress Kentucky-American has made to market water produced by the new plant to neighboring communities, thus lowering costs to Lexington.