Kentucky American Water wants a rate increase. How much could water bills go up?
Kentucky American Water wants a rate increase that would cost the average user an additional $9 a month.
The water system, which covers Fayette and surrounding counties, wants the increase to pay for more than $212 million in infrastructure upgrades, including replacing 30 miles of aging water pipes, upgrading storage tanks and pumping systems.
The new rate would generate about $26.9 million for the company that serves more than 527,000 Kentucky customers in 13 counties.
“Kentucky American Water is dedicated to the health and safety of our customers and the communities we serve,” said Rob Burton, president of Kentucky American Water. “Our approach to long-term, efficient and consistent investments in our water systems enables us to deliver high-quality service to the more than half a million people we serve in 13 counties.”
The company filed the request for the rate increase with the Public Service Commission, which regulates utilities, last week.
The $9 a month increase is based on an average homeowner who uses 3,900 gallons per month.
What happens next
The Kentucky Attorney General and the Lexington-Fayette Urban County Government can intervene in the case on behalf of rate payers, which they typically do.
Susan Straub, a spokeswoman for the city, said Lexington will intervene on behalf of residents.
“We work to keep the cost of living low,” Straub said.
Those groups typically argue a utility’s rate increase is too high and ask the Public Service Commission to decrease the rate. It is rare for the PSC to grant a utility company’s full requested rate increase.
The rate increase can go into effect on a temporary basis in seven months. The PSC typically enters its decision 10 months after a rate increase request, according to the water company.
If the PSC sets a lower rate increase than Kentucky American Water requested, rate payers will get a refund. Rate payers will be notified of the new rates by mail and on the company’s website, according to the water company.
The last time Kentucky American Water asked for a rate increase was in 2023.
This story was originally published May 19, 2025 at 8:23 AM.
