Kentucky American Water seeks rate increase for $108 million upgrades
Kentucky American Water filed a rate request with the Kentucky Public Service Commission to support approximately $108 million in water system investments planned from January 1, 2027, through December 31, 2027.
The company, a subsidiary of American Water (NYSE: AWK), serves more than 550,000 people across 13 Kentucky counties. The proposed investments will fund replacement of aging water pipelines, upgrades to storage tanks, wells, pumping stations, hydrants and meters, plus improvements to treatment facilities to meet regulatory requirements.
Under the proposal, typical residential customers using 4,030 gallons of water monthly would see bills increase by approximately $8 per month if the PSC approves the request.
Kentucky American Water previously filed for new rates in May 2025, with the PSC approving and implementing those rates in December 2025. "These investments directly benefit the communities we proudly serve and continue to support reliable service and improved water quality for our customers," said Robert Burton, president of Kentucky American Water.
The rate request begins a required 10-month PSC review process that includes opportunities for customer input through written comments and consumer advocacy organizations. New rates would take effect on an interim basis in December 2026, pending final PSC approval. Any difference between interim and final approved rates would be subject to refund.
The company offers assistance programs for income-eligible customers, including H2O Help to Others, budget billing options and flexible payment plans.
American Water operates as the largest regulated water and wastewater utility in the United States, providing services to approximately 14 million people across 14 states and 18 military installations.
