Water company requests statewide rate increase

Company's Jefferson City sewer customers would see rate decrease

Missouri American Water filed a request Friday afternoon with the Missouri Public Service Commission (PSC) to increase the company's water and sewer rates.

The company requested an annual revenue increase of $73.9 million for water customers and $800,000 for sewer customers.

Average Jefferson City customers of Missouri American Water using 3,000 gallons of water a month would see a $1.14 increase in their monthly bill, going from $27.75 to $28.89, according to a summary of the proposed rate changes. This would also include the company's customers in Wardsville.

The biggest changes in the proposal are in the company's sewer rates.

An average Wardsville customer using 3,000 gallons a month would see an increase of $7.92, going from $50.50 to $58.42. However, Missouri American is proposing to make sewer rates in Wardsville flat which would leave that amount at the $58.42 in the future. Those using 5,000 and 7,000 gallons a month would see a decrease in monthly rates, going down from the $68.50 and $86.50, respectively, to the flat fee of $58.42.

"Wardsville's rates are currently based on sewer usage, which is what we inherited when we took over the systems after the PSC approved the sale of the systems to us in April," Missouri American Water spokesman Brian Russell said. "Those rates can't change until the PSC gives their approval."

For Jefferson City sewer customers of Missouri American, the monthly sewer fee would remain a flat rate - and customers actually would see a decrease, from the current $66.93 a month to $58.42 a month, a drop of $8.51.

"Our intent is to try and make it to where, if you use less water and sewer, then your bill is lower," Russell said.

The rates will not change until the PSC reviews the request. The process can take up to 11 months and there will be opportunities for the public to comment on the rate change.

Last July, the PSC approved Missouri American's general rate case.

The company's reason for this latest request is "increasing daily operating costs and spending more than $490 million in water and sewer improvements," according to a news release.

The request includes extending the low-income rate, a pilot project the PSC requested Missouri American Water do during the last rate change.

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