Lexington Herald Leader Logo

Kentucky American Water to impose rate increase before PSC approval | Lexington Herald Leader

×
  • E-edition
  • Home
    • All News
    • Business
    • Communities
    • Counties
    • Crime
    • Education
    • Lexington
    • Local
    • Most Wanted
    • Nation/World
    • News Photos
    • News Videos
    • Politics
    • Searchable Databases
    • State
    • Watchdog
    • Columns
    • Tom Eblen
    • All Sports
    • UK Sports
    • College Sports
    • Next Cats Recruiting
    • High School
    • Horses
    • Kentucky Speedway
    • Lexington Legends
    • Reds
    • MLB
    • NBA
    • NASCAR
    • NFL
    • Sports Photos
    • Sports Videos
    • Columns
    • John Clay's Columns
    • Mark Story
    • Next Cats Recruiting
    • All UK Sports
    • Next Cats Recruiting
    • Baseball
    • Basketball - Men
    • Basketball - Women
    • Recruiting
    • Ex-Cats
    • Football
    • UK Photos
    • UK Videos
    • More UK Sports
    • Columns
    • John Clay's Blog
    • Mark Story
    • Politics
    • Elections
    • All Entertainment
    • Books
    • Celebrities
    • Comics
    • Puzzles & Games
    • Events Calendar
    • Horoscopes
    • Movies
    • Music
    • Restaurants
    • Stage & Dance
    • TV
    • Visual Arts
    • Entertainment Photos
    • Entertainment Videos
    • News Blogs
    • Kentucky Weather
    • Photo Archive
    • Sports Blogs
    • John Clay's Blog
    • High School
    • UK Football
    • UK Men's Basketball
    • UK Women's Basketball
    • Lexington Legends
    • Entertainment Blogs
    • Walter Tunis on Music
    • All Opinion
    • Editorials
    • Joel Pett
    • Letters to the Editor
    • National Columnists
    • Op-Ed
    • Submit a Letter
    • All Living
    • Celebrations
    • Family
    • Fashion
    • Food & Drink
    • Fru-Gal: Deb Morris
    • Health & Medicine
    • Home & Garden
    • Paul Prather
    • Religion
    • Travel
    • Readers' Choice
    • Kentucky Obituaries
    • Obituaries in the News
    • Submit an Obituary
    • Customer Service
    • Contact Us
    • About Us
    • E-edition
    • Page Reprints
    • Photo Reprints
    • RSS Feeds
    • Special Sections
    • Site Information
    • Advertise With Us
    • Archives
    • Mobile
    • Mobile Apps & eReaders
    • Newsletters
    • Social
    • Facebook
    • Twitter
    • Instagram
    • YouTube
    • Google+
    • Today's Circulars
    • Classifieds
    • Jobs
    • Cars
    • Homes
    • Homeseller
    • Legal Notices
  • Place an Ad
  • Mobile & Apps

Business

Kentucky American Water to impose rate increase before PSC approval

By Jack Brammer - jbrammer@herald-leader.com

    ORDER REPRINT →

July 26, 2013 01:43 PM

FRANKFORT — Kentucky American Water has decided to implement its proposed rate increase immediately, but it would have to provide refunds with interest to its customers if the state later approves a smaller rate hike.

The company, which serves Lexington, asked the Kentucky Public Service Commission last December to increase its revenue by $12.3 million a year, or 14.6 percent. The commission, which oversees utility rates, has not made a final decision.

For a typical residential customer who uses 4,500 gallons and pays $32.75 a month, the increase would amount to $5.76 more each month — a 17.6 percent increase.

That equates to $1.27 a day, according to the Lexington-based company.

Sign Up and Save

Get six months of free digital access to the Lexington Herald-Leader

SUBSCRIBE WITH GOOGLE

#ReadLocal

Company spokesman Charlie Boland said customers will see the rate increase on their next water bills.

Lexington Mayor Jim Gray strongly opposes the rate hike.

In an email message Friday shortly after the water company said it was proceeding with the rate hike, Gray said, "Kentucky American continues to make anti-Lexington decisions.

"The is the second time the company has jumped the gun on a rate increase in recent years. I renew my call to the PSC to say no to this latest increase, in its entirety. We are already paying 71 percent more than six years ago after three rate increases."

Earlier this year, Gray said the company had made poor business decisions in recent years and now wanted ratepayers to foot the bill. The Urban County Council also has voted to oppose the rate hike.

The Community Action Council, which helps low-income people in Central Kentucky and is an intervener in the case before the PSC, said it is "extremely disappointed" with Kentucky American.

Charlie Lanter, manager for program development for the council, said in a statement, "Today's decision obviously reflects confidence on the part of the company that the PSC will agree with its position and approve yet another increase.

"We are disappointed that the company's customers will be forced to advance them money that, hopefully, the company will be forced to return if the rate increase is denied."

Cheryl Norton, president of Kentucky American Water, said in a news release that the company needs to implement the increase now because of the high cost of infrastructure.

"Because current rates do not cover the immense amount of capital expenditures made since 2010, we must now implement rates to begin recovering those costs," she said.

"Should the ultimate rate increase allowed be less than we have requested, customers will be kept whole by prompt refunds with interest."

Kentucky American Water's last rate increase was in late 2010. Since then, the company said it has invested about $58 million in infrastructure system improvements.

State law allows a utility to implement a proposed rate hike before a commission decision if a review process has been completed.

That involves a public meeting, which was held May 28; commission meetings, which were conducted June 4 and 6, and a seven-month waiting period after filing for the rate hike.

PSC spokesman Andrew Melnykovych said he doesn't know when the commission will make its final decision.

The three-member commission has to make a decision within four months, Melnykovych said.

The company also wants permission to adjust its rates annually to cover the cost of infrastructure repairs and price fluctuations for water and chemicals. If that request were approved, the PSC would continue to conduct a limited review of the changes.

Kentucky American Water, a subsidiary of American Water, is the largest investor-owned water utility in the state. It provides water service to about 500,000 people.

Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs about 6,700 to provide water to about 14 million people in more than 30 states and parts of Canada.

Related stories from Lexington Herald Leader

politics-government

Mayor Gray rails against proposed water rate increase at public hearing

May 28, 2013 08:46 PM

business

PSC approves Kentucky American's $14.1 million project

March 01, 2013 04:10 PM

  Comments  

Videos

A true Appalachian taste test: What do we think of Dueling Barrels moonshine?

Co-owner of Willie’s Locally Known asks fans to come dine at the restaurant

View More Video

Trending Stories

Pazzo’s, Magee’s Bakery, Texas de Brazil, Sonic, Qdoba and more on probation

February 15, 2019 06:45 AM

Updated list of restaurants on probation as of February: Read before you eat

February 15, 2019 07:00 AM

‘She has to come home.’ Here’s how you can help find missing Kentucky mom

February 15, 2019 03:03 PM

UK student got a chance to win $19,000 with a half-court shot. He nailed it.

February 16, 2019 12:41 PM

A new $12 million school scheduled to open last fall is sitting empty. Here’s why.

February 15, 2019 03:12 PM

Read Next

Police: Aurora attacker used gun he shouldn’t have owned

Business

Police: Aurora attacker used gun he shouldn’t have owned

By DON BABWIN and CARYN ROUSSEAU Associated Press

    ORDER REPRINT →

February 16, 2019 06:42 PM

The man who killed five co-workers at a suburban Chicago manufacturing plant took a gun he wasn't allowed to have to a job he must have known he was about to lose.

KEEP READING

Sign Up and Save

#ReadLocal

Get six months of free digital access to the Lexington Herald-Leader

SUBSCRIBE WITH GOOGLE

MORE BUSINESS

The Latest: CEO: Gunman passed background check when hired

Business

The Latest: CEO: Gunman passed background check when hired

February 16, 2019 06:05 PM

Business

Correction: Lithium Ion Batteries-Recycling story

February 16, 2019 10:12 AM
NBA, FIBA announce plans for pro league in Africa

Business

NBA, FIBA announce plans for pro league in Africa

February 16, 2019 06:37 PM
The Latest: Gillibrand accuses Trump of dividing people

Health & Medicine

The Latest: Gillibrand accuses Trump of dividing people

February 16, 2019 06:33 PM
Shanahan says he hasn’t determined amount for border wall

Business

Shanahan says he hasn’t determined amount for border wall

February 16, 2019 06:12 PM
AP source: OF Maybin nears minor league deal with Giants

Business

AP source: OF Maybin nears minor league deal with Giants

February 16, 2019 06:05 PM
Take Us With You

Real-time updates and all local stories you want right in the palm of your hand.

Icon for mobile apps

Lexington Herald Leader App

View Newsletters

Subscriptions
  • Start a Subscription
  • Customer Service
  • eEdition
  • Vacation Hold
  • Pay Your Bill
  • Rewards
Learn More
  • About Us
  • Contact Us
  • Newsletters
  • News in Education
  • Archives
Advertising
  • Contact Us
  • Place a Classified Ad
  • Local Deals
  • Digital Solutions
  • Media Kit
Copyright
Privacy Policy
Terms of Service


Back to Story