Water Rate Hike May Be Substantial

LEXINGTON, Ky. (AP) - Most residential Water bills in Fayette and neighboring counties would be increased by 29 percent under a rate increase requested yesterday by Kentucky American Water.

The company filed the rate request with the Kentucky Public Service Commission, which must approve such rate changes. Historically, the P-S-C has granted Kentucky American about 50 to 60 percent of what it requests.

Kentucky American says the higher rate would bring in an additional 13-point-two (m) million dollars a year. That would produce an overall increase to the company's revenues of 25 percent.

Most customers in the company's central division, including Lexington, would pay more, while those in the northern division would see a decrease.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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