Investment in Central Kentucky Water Supply Project Drives Request for New Rates
Proposed Increase Still Retains Value of Water Service at Less than a Penny a Gallon
(EMAILWIRE.COM, February 26, 2010 ) Press release Distribution Service - http://www.emailwire.com/us-press-release-distribution.php
Lexington, Ky – Kentucky American Water today filed an application with the Kentucky Public Service Commission (PSC) for a change in rates in
water service.
The application includes a request to increase overall revenues by $25.848 million. Approximately 91 percent of the overall increase is directly driven by the costs associated with investment in and operation of a new 20 million-gallon-per day (MGD) water treatment plant and associated transmission facilities being constructed to address Central Kentucky’s water supply shortfall.
The Central Kentucky Water Supply Solution project includes the new 20 MGD water treatment plant on Pool 3 of the Kentucky River in Owen County, a booster pump station and 3-million-gallon storage tank in Franklin County and a 31-mile underground water transmission main connecting the new plant to the company’s existing water distribution system in Fayette County. These facilities, which were approved by the PSC in 2008, are currently being constructed and scheduled to be operational by late summer 2010.
Today’s request, if granted in full, would increase the monthly bill for an average residential customer using 4,470 gallons from $25.46 to $34.90, an increase of $9.44 per month or 31 cents per day. Even with this increase, customers would continue to receive high-quality, reliable water service for less than a penny per gallon.
Approximately $8.63 of the monthly increase for the average residential customer in this case is directly related to the cost of the new treatment plant and transmission facilities. The new treatment plant and transmission facilities’ cost, expected completion date and overall rate impact are consistent with the company’s 2008 Certificate Application approved by the PSC.
“While communities across the country are struggling to keep up with the necessary investments in their water and wastewater infrastructure, Kentucky American Water continues to invest annually in its systems to ensure that local water quality and service continues to be as good as or better than local, state and federal quality standards,” said Susan Lancho, communications manager. “And even with these investments, at less than a penny per gallon, water service remains a great value for our customers.”
As a private water utility in Kentucky, Kentucky American Water cannot increase rates on its own. Rather, it must submit a request to the PSC for rigorous, months-long review and analysis. This comprehensive, transparent process involves PSC commissioners and staff, the state Office of the Attorney General and other parties, and includes opportunity for public feedback. The process is expected to take approximately seven months.
Kentucky American Water last filed a request for an increase in rates in October 2008.
More information regarding the Central Kentucky Water Supply Solution can be found at www.kentuckywatersolution.com.
Kentucky American Water, a wholly owned 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. Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employees more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 16 million people in 35 states and Ontario, Canada. More information can be found by visiting www.amwater.com
-end-
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Lexington, Ky – Kentucky American Water today filed an application with the Kentucky Public Service Commission (PSC) for a change in rates in
water service.
The application includes a request to increase overall revenues by $25.848 million. Approximately 91 percent of the overall increase is directly driven by the costs associated with investment in and operation of a new 20 million-gallon-per day (MGD) water treatment plant and associated transmission facilities being constructed to address Central Kentucky’s water supply shortfall.
The Central Kentucky Water Supply Solution project includes the new 20 MGD water treatment plant on Pool 3 of the Kentucky River in Owen County, a booster pump station and 3-million-gallon storage tank in Franklin County and a 31-mile underground water transmission main connecting the new plant to the company’s existing water distribution system in Fayette County. These facilities, which were approved by the PSC in 2008, are currently being constructed and scheduled to be operational by late summer 2010.
Today’s request, if granted in full, would increase the monthly bill for an average residential customer using 4,470 gallons from $25.46 to $34.90, an increase of $9.44 per month or 31 cents per day. Even with this increase, customers would continue to receive high-quality, reliable water service for less than a penny per gallon.
Approximately $8.63 of the monthly increase for the average residential customer in this case is directly related to the cost of the new treatment plant and transmission facilities. The new treatment plant and transmission facilities’ cost, expected completion date and overall rate impact are consistent with the company’s 2008 Certificate Application approved by the PSC.
“While communities across the country are struggling to keep up with the necessary investments in their water and wastewater infrastructure, Kentucky American Water continues to invest annually in its systems to ensure that local water quality and service continues to be as good as or better than local, state and federal quality standards,” said Susan Lancho, communications manager. “And even with these investments, at less than a penny per gallon, water service remains a great value for our customers.”
As a private water utility in Kentucky, Kentucky American Water cannot increase rates on its own. Rather, it must submit a request to the PSC for rigorous, months-long review and analysis. This comprehensive, transparent process involves PSC commissioners and staff, the state Office of the Attorney General and other parties, and includes opportunity for public feedback. The process is expected to take approximately seven months.
Kentucky American Water last filed a request for an increase in rates in October 2008.
More information regarding the Central Kentucky Water Supply Solution can be found at www.kentuckywatersolution.com.
Kentucky American Water, a wholly owned 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. Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employees more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 16 million people in 35 states and Ontario, Canada. More information can be found by visiting www.amwater.com
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Contact Information:
American Water Works Service Company Inc
Susan Lancho
Tel: 859.268.6332
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
American Water Works Service Company Inc
Susan Lancho
Tel: 859.268.6332
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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