Mountain Water District asked for higher rates; the PSC approved an even bigger increase

FRANKFORT, Ky. — The Kentucky Public Service Commission has rejected Mountain Water District’s proposed $3.1 million increase in its water and sewer rates. But instead of saving customers money, it will actually mean even higher bills, as the regulator approved an increase of more than $3.4 million.

The utility had sought to increase water bills by nearly 23 percent, and sewer bills by nearly 50 percent for metered customers and almost 16 percent for flat-rate customers. Instead, the PSC approved water rates that are 35 percent higher once fully implemented and sewer rates that are 52 percent higher for metered customers and nearly 38 percent higher for flat-rate customers.

Consumers won only two small victories in the decisions, which were handed down Oct. 31. The new water rates will be phased in over three years, instead of all at once, and the PSC rejected Mountain Water’s request for a $5.61 “infrastructure improvement surcharge.” However, the PSC did approve a $1.72 per month “water loss surcharge” that will be added to customer bills for the next four years.



What all of this means is that the average water customer using 3,100 gallons a month will see their bill rise from $33.50 currently, to $38.83 in year one, $42.11 in year two and $45.24 in year three.

Metered sewer customers using an average of 4,134 gallons a month will see their bills rise from $72.24 currently, to $84.97 in year one, $97.90 in year two and $110.90 in year three.

Meanwhile, flat-rate sewer customers who do not have water service will see their bills rise from $78.15 currently, to $82.42 in year one, $87.80 in year two and $107.58 in year three.

Despite widespread publicity, the rate increase did not receive any opposition, including from the Attorney General’s Office of Rate Intervention, which typically represents the interests of consumers in rate cases, but elected not to get involved in the cases.

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