PSC adjusts Ky. American Water rates

September 5, 2018

The Kentucky Public Service Commission has reduced the annual revenue of Kentucky American Water Co., thereby lowering the average monthly bill for residential customers, according to a press release from the PSC. In an order issued last week, the PSC approved rates to reflect reduced federal corporate income tax rates that took effect at the first of the year.

The result will be a savings of $3.84 per month for a typical residential customer with monthly usage of 4,000 gallons, according to the release.

Customers will see the reduction through a decrease in the charge per 1,000 gallons of water. For residential customers, the cost per 1,000 gallons will decline from about $6.02 to $5.06. Monthly customer charges will remain the same. It is currently $12.49 for residential customers, the release explained.

“The new rates reflect only the immediate impact of the decrease in the federal corporate income tax rate from 35 percent to 21 percent,” the release said. “The more complex issue of calculating the tax law’s impact on Kentucky American Water’s various deferred tax liabilities, and any further reduction in rates, will be dealt with at a later date.”

The new rates will remain in place until the conclusion of Kentucky American Water’s next rate adjustment case or until the PSC sets new rates to take effect after June 30, 2019, according to the PSC.

Kentucky American Water has about 131,000 customers in 10 central Kentucky counties. It also has about 1,100 sewer customers in four counties, which will also will see a decrease in rates.

Thursday’s orders and other records in the cases are available on the PSC website, psc.ky.gov. The case number for the Kentucky American Water tax case is 2018-00042. The Water Service Kentucky tax case is 2018-00043; the rate case is 2018-00208.

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