Settlement reached in Kentucky American Water rate case

LEXINGTON, KY, AUGUST 25, 2016 — The Kentucky Public Service Commission (PSC) has announced its approval of a settlement granting Kentucky American Water a rate adjustment for water bills that will increase its annual revenue by $6.5 million, which is slightly less than half the amount the company requested when it filed the case on Jan. 29 of this year. As a result of the rate adjustment, the monthly bill for an average residential water service customer using 4,136 gallons of water per month will increase from $34.41 to $37.38 – or $2.97 more per month – effective Aug. 28.

All parties involved in the rate case proceeding – Kentucky American Water, the Kentucky Office of the Attorney General, the Lexington-Fayette Urban County Government and the Community Action Council for Lexington-Fayette, Bourbon, Harrison and Nicholas Counties – reached a settlement in the case in July, which was subject to PSC approval.

The company requested the rate adjustment primarily due to the $79 million in capital improvements it has made since 2012. These improvements include projects such as replacing aging water mains, upgrading pumps to more efficient models, and constructing a new $15 million filtration building at the Richmond Road Station water treatment plant in Lexington to replace a 90-year-old structure. Before the 2016 case, the last time the company requested a rate adjustment was in December 2012.

“Ongoing investment in water system infrastructure is absolutely essential in order to maintain quality, reliable water service for our customers,” said Nick Rowe, president of Kentucky American Water and senior vice president of American Water’s Central Division. “While we continue to make prudent investments in the water systems that serve our customers, we are also cognizant of the need to maintain affordable rates, which is why we are also committed to performing as efficiently as possible. We have maintained essentially flat operational expenses since 2012, and our teams continue to work harder and smarter to stay on that same path.”

Kentucky American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately half a million people. The company was recognized as a Best Place to Work in Kentucky in 2014, 2015 and 2016. For more information, visit

Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. Marking its 130th anniversary this year, the company employs more than 6,700 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found at