The Kentucky Public Service Commission has granted Water Service Corp. of Kentucky a 4 percent rate increase, less than the 11.1 percent increase requested. The increase will have an immediate effect on water bills for residents in the Clinton area of Hickman County.
The monthly residential water bill for a customer using 5,000 gallons will increase by $1.56 (4 percent). Though not included in the rate case with the PSC, sewer rates in Clinton, where the sewer system is operated by Water Service under a contract with the city, are tied to the water rate and will also rise by about the same.
Had Water Service's request for an 11 percent increase been granted, Clinton residents would have seen a $4.26 increase on residential water bills per 5,000 gallons each month.
Water Service was last granted a rate increase of 3 percent in November 2011 when it requested a 22 percent hike.
According to Water Service's application for the increase filed in September, the increase was requested to cover new administrative functions provided by its parent company including record keeping, customer service and billing for the Kentucky operations.
The PSC said that Water Service had not produced evidence that its Kentucky customers have or would benefit from the parent company's accounting and financial systems upgrades. Therefore, the PSC said, it sees no reason to change its position expressed in the utility's previous two rate cases, and that Kentucky customers should not bear the costs of the projects.