FRANKFORT, Ky. (AP) - The Kentucky Public Service Commission will allow Kentucky-American Water Co. to increase annual revenue by $10.3 million.
It will result in monthly rate increases of about $3.90 for customers using 5,000 gallons of water beginning Monday. A monthly customer charge will increase from $7.95 to $8.60.
Kentucky-American had sought to increase annual revenue by about $18.5 million, or about 31 percent. That would have increased the average monthly residential bill by about $7.
The PSC said the fee increase it granted was a "reasonable compromise."
Kentucky-American said the additional revenue is needed to meet increased operating costs and to pay for a new water treatment plant and pipeline in Owen County.
(Copyright 2009 by The Associated Press. All Rights Reserved.)