Public Service Commission orders refunds after scaling back Kentucky-American Water rate increase

The utility asked for a $26 million revenue increase last year. It would have seen service fees jump by 33%.

The PSC scaled back that increase to $10 million, with those service fees only increasing by nine percent.

The utility implemented the original increase Feb. 6 before the Commission ordered refunds along with the new rate in a May 3 order .

The PSC said in the order that the utility had not done enough to mitigate water loss from its systems.
Both the Lexington-Fayette County Urban Government and Attorney General Russell Coleman, joint intervenors in the case, said the originally proposed increase would have been a “financial hardship” to customers.

The increase affects customers in Lexington and 14 counties in central Kentucky: Bourbon, Clark, Fayette, Franklin, Gallatin, Grant, Harrison, Jackson, Jessamine, Nicholas, Owen, Rockcastle, Scott and Woodford.